The path to a cleaner atmosphere just got a $1 billion boost.
HSBC, one of the world's largest banks, recently teamed up with Google to expedite funding for companies creating leading-edge technologies to reduce their carbon output.
This means more climate fixes — from electric vehicles to energy-efficient data centers — can scale up quickly so more people benefit sooner.
According to Reuters, HSBC will provide financing to climate tech firms handpicked by Google to join an elite sustainability program. Google vets each company, verifying their tech quality and market traction. Their solutions must demonstrate clear potential to slash pollution levels across industries.
The collaboration comes on the heels of HSBC acquiring a climate-focused lender last year. This helped the bank gain expertise in a complex area many mainstream financiers overlook due to perceived risk. However, HSBC sees funding innovation as imperative, not risky.
The bank also just met an internal target set last year to deploy $1 billion towards climate solutions by 2030 — a goal they now hope to accelerate.
Alongside this news, HSBC revealed its first financing deal from the partnership, providing venture debt to startup LevelTen Energy, which runs a renewable energy marketplace connecting buyers and sellers.
"Technology and finance are going to be key enablers of climate action," said Justin Keeble, managing director for global sustainability at Google Cloud. He added that companies urgently need data tools to measure and reduce emissions.
Over time, HSBC plans to connect customers directly with climate tech firms to ease their transition to sustainability.
So, while the climate crisis can seem abstract and overwhelming, targeted financing of vetted technologies makes solutions concrete. A more calculated investment means faster adoption of innovations that benefit the planet and its citizens.
"Companies [want] to accelerate delivery of their sustainability goals. But there's a degree of confusion as to which solutions out there are going to help solve their problems," said Keeble.
"HSBC's finance will help those partners scale their businesses, and then HSBC will help customers access all this innovation."
Will it work? Other executives are optimistic. "We feel like we are increasing our odds of success by working with partners like Google," said Martin Richards, global head of climate tech and sustainable finance at HSBC. "We recognise we're taking credit risks, but that is all part of banking."
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