COP26 (26th conference) is the 2021 United Nations Climate Change Conference hosted in Glasgow between 1-12 November 2021. The purpose of this event was to bring together leaders of the world’s most powerful countries to discuss the effects of climate change. Also, to align their strategies for reducing the increasing global temperatures and escalating climate change issues that have caused sea levels to rise and have already resulted in the death of millions of animals worldwide.
Driven by the effects of climate change, a new industry: "Cleantech", has emerged. Cleantech refers to hardware, software and tech-enabled products that strive to better the environment. Several Cleantech businesses had already received high levels of financial investment, indicating that many believe that Cleantech is a hot sector and could provide high returns on investment when policies brought in on the back of COP26 begin to take shape and as the industry matures.
Government funding to combat climate change is expected to be significant over the next five years, which would suggest that the market is primed for substantial growth, with investors lining up for an opportunity to become a part of the journey.
An example of a business benefitting from interest in the sector is Tokamak Energy. Tokamak is currently developing a cost-effective, clean magnetic confinement device to produce controlled thermonuclear fusion power. With a current valuation of £271.8m, having received large sums of investment from Lord Wolfson, Oxford Instruments and the UK Innovation & Science Seed Fund, the growth potential of Tokamak makes for an exciting opportunity for those involved far surpassing the valuation of start-ups operating in other industries.
If you would like to learn more about how Translink IMA can assist you in your cleantech journey, please do not hesitate to contact one of our advisors via our website at IMA Corporate Finance.
Translink IMA is part of Translink Corporate Finance, an international M&A group with over 600 finance professionals located in 30 offices across the globe. Our offices have closed transactions in every industry, and our sector expert groups include IT, SaaS, Healthcare, Food, Automotive, Industrials and Transport. We focus on providing our clients with deeper insights into global developments and knowledge on targets and bidders in their respective markets.
References
MarktoMarket: COP26: CLEANTECH STARTUPS PART 1
National Grid: COP26 – Coming together to tackle climate change
