HSBC invests $ 100m to accelerate clean technologies development

02 / 02 / 2022

By Marwa Nassar - -

HSBC Holdings plc (HSBC) is announcing it is investing $100m as an anchor partner in Breakthrough Energy Catalyst, (“Catalyst”), a groundbreaking program that leverages private-public capital to accelerate the development of clean technologies that will help achieve net-zero emissions by 2050.

Catalyst is an initiative within the larger Breakthrough Energy network founded by Bill Gates, which is designed to support decarbonization of high-carbon sectors via investments in four climate critical technologies – direct air capture, clean hydrogen, long-duration energy storage, and sustainable aviation fuel. These technologies will be crucial to the future of areas such as power generation, transport and heavy industry – all of which must be addressed to progress towards net zero.

With estimates that half the technologies that are needed to achieve climate goals either do not exist yet or are too expensive for much of the world to afford1, Catalyst brings together businesses, governments, philanthropists, and individuals to invest in the clean technologies that are needed to eliminate emissions.

Catalyst funds actual projects, not companies, focusing on what it will take to drive down costs and rapidly grow the adoption of climate-smart technologies. Catalyst also focuses on bringing down the cost of production for products, such as clean hydrogen and sustainable aviation fuel, thereby reducing the ‘Green Premium’2 on these products and making them more accessible.

HSBC’s $ 100m investment will accelerate the global net zero pathway and supports HSBC’s goal of achieving net-zero climate impact by 2050.

In addition to its $ 100m investment, HSBC will join the leadership council for Breakthrough Energy Catalyst, providing an expert view on the transition opportunities in some of its biggest markets, notably in Asia and the Middle East.

“To reach net zero, we need to reduce the cost of clean technologies so they can be deployed at scale and become more affordable and accessible for all,” said Bill Gates, Founder, Breakthrough Energy. “The only way to achieve this is through deep collaboration across public and private sectors – no country, company, or individual can halt the progress of climate change alone.”

Noel Quinn, HSBC’s Group Chief Executive, commented: “A small number of green technologies will reshape the industrial landscape of the world over the next 5 to 10 years. I am grateful for the opportunity for HSBC to be part of Breakthrough Energy Catalyst to accelerate their development and make them scalable. I genuinely believe this groundbreaking partnership can help bring these much-needed clean solutions to market and build a more sustainable world.”