Climate tech boom

Amsterdam is well on its way to becoming a climate tech powerhouse, ranking fifth in Europe for the number of climate tech startups created since the Paris Agreement.

In total, 167 new businesses dedicated to reducing greenhouse gas emissions or addressing the impacts of climate change were set up in the city since 2016.

The Netherlands ranked eighth globally for climate tech investment, attracting $1.3bn since 2016. The US topped the list, followed by China, Sweden and the UK.

The report by startup data provider and London trade promotion agency London & Partners coincides with the upcoming 2021 UN Climate Change Conference being held in Glasgow this month (COP26).

It found that globally, climate tech VC funding increased by almost five times since the Paris Agreement, soaring from $6.6bn in 2016 to $32.3bn in 2021, with Europe the leading driver behind that growth, and investment in the region's climate tech industry growing seven times since 2016. Energy and transportation startups attracted more than 80% of climate tech funding, followed by food, enterprise software and circular economy. 

Amsterdam’s promising climate tech sector

Amsterdam is renowned for its sustainability credentials as one of the top green finance centres in the world and Europe’s top ranking city for environmental policies. Amsterdam-based companies such as Overstory and Land Life Company use AI technology to monitor forests and vegetation to protect biodiversity and optimise tree planting, while e-commerce services such as Dayrize and Lalaland use algorithms to help shoppers make more eco-friendly choices. Beyond climate tech companies, businesses in Amsterdam are increasingly decarbonising supply chains, making office buildings more energy efficient, and switching to greener energy and logistics solutions. 

As the first city in the world to adopt the doughnut model for the economy, where business activity respects the limits of people and the planet, the City of Amsterdam is aiming to become a completely emission-free city by 2030 and wants to be fully circular by 2050.

Read more business news from around Amsterdam.