Sector Growth Overview
Kädi Ristkok, Executive Director of Cleantech for Baltics, opened the Coalition Meeting by sharing insights from the 2023 Baltic Cleantech Annual Report. Notably, the region experienced a remarkable 40% increase in investments, totalling €396 million. This growth positions the Baltics as a global leader in cleantech investments per capita, surpassing major players like the US and China. The ongoing conflict in Ukraine has accelerated a shift towards energy security, prompting an increased focus on renewable energy solutions.
Challenges in the Sector
The meeting highlighted challenges discussed at the Cleantech for Europe Summit 2024. Key issues include strengthening cleantech demand through public procurement and regulations, alongside addressing the access to cleantech growth financing, which remains a significant hurdle.
The challenge of accessing cleantech financing, especially in the scale-up phase, is not unique to the Baltics; Magnus Agerström, Executive Director of Cleantech for Nordics, affirmed that it is seen as a big challenge in the Scandinavian region as well. A report by Sightline Climate unveiled that raising Series B financing for cleantech companies now averages over two years, a stark increase from 11 months just three years ago. Furthermore, total Series B financing saw a 24% decrease in the first half of 2024, showing the pressing need for financing solutions.
Addressing Cleantech Growth Financing Barriers
Cleantech for Baltics is taking a proactive role in tackling the challenge of securing growth financing by publishing a white paper on the topic as a first step. The Coalition Meeting provided initial insights for the paper, with plans for one-on-one discussions with coalition members to identify additional key points. As the Baltics aim to solidify their position as key cleantech players, the coalition serves as an essential platform for strengthening regional collaboration, driving innovative solutions, and addressing challenges slowing down sector growth.
