How much capital is flowing into climate tech and clean energy in 2024?

The International Energy Agency projects clean energy investment to reach about $2 trillion in 2024, extending strong momentum from the $1.8 trillion deployed in 2023 across the energy transition. This includes renewable power, electrified transport, grids, storage, and efficiency technologies.

Which sectors are leading deployment growth within Climate Tech?

EVs, solar PV, and grid-scale storage are expanding fastest, with over 14 million electric cars sold in 2023 and record renewable capacity additions. Companies like Tesla, BYD, NextEra Energy, and Ørsted are scaling assets as battery suppliers such as CATL enable cost and capacity improvements.

Are climate tech startups still attracting venture capital?

Yes, though funding has normalized alongside broader venture markets. PwC data shows a year-over-year decline in 2023, but startups such as Climeworks, Heirloom, Form Energy, and Northvolt continue to secure strategic backing, offtake agreements, and project finance as they move from pilots to commercial deployments.

What role do corporate buyers and public policy play in growth?

Corporate clean energy purchasing hit records in 2023, providing long-term demand signals for developers and manufacturers. Public programs—such as the U.S. DOE’s support for direct air capture hubs—help derisk first-of-a-kind projects and crowd in private capital for scaling emerging technologies.

What are the key challenges for Climate Tech in 2025?

The sector must navigate grid interconnection backlogs, permitting timelines, and supply-chain volatility while maintaining cost discipline. Continued policy clarity, robust corporate offtakes, and execution excellence from equipment makers and developers will be critical to sustaining growth.

Climate Tech Market Trends: Investment, Deployment, and Corporate Demand in 2025

Clean energy and climate tech investment is accelerating even as venture markets recalibrate. From record energy-transition capital in 2023 to surging EV sales and corporate power deals, fresh statistics reveal where growth is strongest—and where challenges remain.

Published: November 16, 2025 By David Kim Category: Climate Tech

Climate Tech Market Trends: Investment, Deployment, and Corporate Demand in 2025

Global Investment Snapshot

Global capital flowing into climate tech remains robust. Investment in the energy transition hit $1.8 trillion in 2023, up 17% year over year, according to BloombergNEF’s latest tally global investment data. The International Energy Agency projects clean energy investment to reach roughly $2 trillion in 2024, outpacing fossil fuel spending and underscoring the sector’s structural momentum IEA World Energy Investment 2024. These figures span renewables, electrified transport, grid modernization, storage, low-carbon fuels, and efficiency technologies.

Electrified transport and power systems continue to capture outsized shares of capital. Leaders like Tesla, BYD, and battery suppliers such as CATL benefit from rising EV demand and stationary storage deployments, while large-scale developers including NextEra Energy and Ørsted expand renewable generation portfolios. Grid hardware and distributed energy providers—among them Siemens, GE Vernova, and residential solar-storage specialists like Enphase Energy—are positioned to capture upgrades that integrate intermittent generation and flexible demand.

Regional dynamics are shifting as policy support and manufacturing advantages diverge. Europe’s offshore wind leaders, including Vestas and Ørsted, face inflation, permitting, and supply-chain constraints even as long-term targets expand. In North America, utility-scale renewables and storage are benefiting from tax incentives, while Asia’s EV and battery ecosystems—anchored by BYD and CATL—are accelerating export and domestic market penetration.

Venture Funding and Startup Dynamics

Venture and growth equity for climate tech cooled alongside broader private markets. PwC’s State of Climate Tech 2023 report found sector funding declined roughly 40% year over year in the first half of 2023, though climate tech continued to outperform many venture categories on a relative basis industry report. Deal pacing and valuations normalized as investors prioritized capital efficiency and commercialization milestones over moonshot R&D without near-term unit economics.

Startups such as Climeworks and Heirloom...

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