Why Europe may have to accept a 'sovereignty premium' for climate tech

From left: Christopher Steinau (Lightrock), Torben Schreiter (Extantia), Rebecka Löthman Rydå (Norrsken Evolve), Danijel Višević (World Fund). Credit: Siôn Lawrence-Geschwindt for Impact Loop
2 dec. 2025
15:59
As Europe races to secure homegrown batteries, fuels, and materials, some investors say buyers may have to pay a "sovereignty premium" to break reliance on foreign supply chains.

"European society needs to make a fundamental decision," Torben Schreiter, partner at Extantia, tells Impact Loop.

Europe has long pushed for technologies that are green, competitive, and made locally. But there’s a growing acknowledgment in climate tech circles that this wish list carries a price tag.

If the region wants supply chain resilience in batteries, fuels, materials, and other critical clean tech building blocks, it may have to pay what investors are beginning to call a “sovereignty premium.”

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