Reuters writes that Google will pick the companies that are going to receive financing through its Cloud Ready-Sustainability program, while HSBC will provide the funds required to scale the climate solutions.
Justin Keeble, managing director for global sustainability at Google Cloud, said that "what we're seeing is companies wanting 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."
"HSBC's finance will help those partners scale their businesses, and then HSBC will help customers access all this innovation", he added.
While there is currently a higher need than ever for climate technologies, PwC experts say that in 2023, funding for this sector experienced a decline, as risks sway potential investors away.
Martin Richards, global head of climate tech and sustainable finance at HSBC, said that "we feel like we are increasing our odds of success by working with partners like Google. We recognize we're taking credit risks but that is all part of banking."
Experts at the International Energy Agency said that almost half of the emission reductions required to meet net-zero by mid-century are expected to be delivered by technologies that are currently unscaled.
HSBC aims to provide $1 billion in funding to support companies across sectors such as electric vehicles, battery storage and sustainable food systems by the next decade.
Talking about the aviation sector, Richards added that "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."