According to PwC's latest Climate Tech Report, the Mobility sector has received $58 billion in investment since 2013.
This is more than two-thirds of the total Climate-Tech funding bulk.
However, Mobility represented only 16% of total carbon emissions.
If you compare that with "Industry and Manufacturing," which represented 29% of emissions but received just 9% of venture investment, a Climate Tech mismatch becomes quite clear.
Is this a problem?
First, all sectors need funding to work on a more sustainable future. Therefore, this mismatch is nothing we should worry about too much.
Additionally, mobility modes, including air travel, are often in the center of public attention and branded as the primary scapegoats for the climate crisis. Hence, a little more funding than needed seems relatively fair.
However, the overall objective of capital allocation must be to activate the most critical levers to meet the world's decarbonization goals.
VCs and businesses should, therefore, rethink what it would take to invest in the areas that can reduce emissions the most.