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HSBC, Google team up to deploy $1 billion in climate tech financing

These two powerhouses are joining forces to accelerate the decarbonization of global companies.

Close up of Google Cloud sign displayed in front of their headquarters in Silicon Valley; South San Francisco bay area

Photo courtesy of Shutterstock/Sundry Photography

What are we talking about: HSBC and Google formed a partnership to scale up the development of climate technology. HSBC will provide venture debt financing options to companies in the Google Cloud Ready-Sustainability initiative. Google Cloud allows its member companies to help their customers with reduced carbon emissions and sustainability risks via cloud-based software. 

"If you’re an airline, and you need to get to net zero using sustainable aviation fuels, you’re going to need to know the players who will come to market quickest and meet their production goals fastest," said Martin Richards, global head of climate tech and sustainable finance at HSBC, in a recent interview.

Google Cloud Ready-Sustainability initiative has 30 companies participating, including Deloitte, Watershed and Airbus.

HSBC’s ultimate goal is to deploy $1 billion in climate tech financing by 2030.

"What we’re seeing is companies want to accelerate delivery of their sustainability goals," said Justin Keeble, managing director for global sustainability at Google Cloud, to Reuters.

Why is this important: Climate technology financing hit a slump in 2023. A combination of factors — including increasing interest rates and multiple international conflicts — saw investors become increasingly risk averse. A steady stream of investing will decrease risk for other investors, reinvigorating the marketplace.

Likewise, Google’s stamp of approval on the businesses participating in its Google Cloud sustainability initiative provides a sense of financial safety for HSBC as it looks to invest.

What’s the bigger picture: According to Net Zero Insights, total global funding in the climate tech sector reached $18.58 billion in January alone. In comparison, $11.17 billion was raised during this same period in 2023, marking a nearly 66 percent increase.  

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