Climate Technology Industry

As COP30 enters its 2nd week, we launch the Allianz Green Transition Tracker 2025—a clear, data-driven view of global progress toward net zero, using a unique peer- and progress-scoring framework. Alongside the main report, we're also publishing detailed profiles for 69 countries worldwide. ⚠️ The global green transition is at a critical juncture. Despite a decade since the Paris Agreement, climate impacts are accelerating—2024 was the hottest year on record, with climate damages reaching $300bn and economic losses in the trillions. Current trends point to warming above +3°C by 2100. Keeping below 2°C will require rapid electrification, deep fossil-fuel cuts, and faster clean technology deployment. The decisions made at COP30 will be pivotal for the next decade. 📈 Progress is real, but investment gaps remain. Renewables overtook coal in global power production in early 2025, and low-carbon electricity capacity has grown by 53% since 2015. Clean energy is now cost-competitive: solar costs are down 87%, wind by up to 55%, and batteries by over 80%. Yet, despite $2.1trn invested, a $2.6trn annual mitigation gap remains through 2030. 🚦 Our Green Transition Tracker reveals both momentum and divergence. While many countries are advancing faster than expected, the gap between leaders and laggards is widening. Lower-income countries like Sri Lanka and Colombia perform well due to low per-capita emissions, while advanced economies such as Sweden, Denmark, and Switzerland lead in sustained decarbonization. Fossil-fuel-dependent nations continue to lag. ⏩ The pace of decarbonization is encouraging, but not enough. Fifteen countries have covered at least one-third of the journey to net zero, led by Luxembourg and Switzerland. Another 20—including Spain, Brazil, Poland, and Australia—have made notable progress, but momentum is still insufficient. Major emitters like the US and China, responsible for about 40% of global emissions, have shown only marginal improvement since 2015. 🌐 The global outcome will be shaped by a handful of major economies. China, the US, India, Europe, and Brazil together account for over 56% of global emissions. Decarbonizing these key players is essential to keeping global warming in check and advancing a low-carbon future. 🌱 #COP30 #GreenTransition #NetZero #ClimateAction #Sustainability #NZAOA #Ludonomics #AllianzTrade #Allianz

A SaaS company in trouble cuts marketing spend and headcount. A climate venture has all of that, plus inventory sitting in containers, panels in warehouses, and payments locked behind commissioning milestones. Last week’s post covered universal cost cutting lessons: Be decisive, treat people well on the way out. The climate-specific layer matters most to anyone building or backing a hardware-heavy business. Climate ventures carry complexity that software businesses do not. They manage manufacturing, inventory, deployment, hardware warranties, project financing, and working capital that sits in the system for months before revenue arrives. Where climate intersects with agrifood, you add the volatility of farmer income tied to a successful harvest. Unit economics can be strong. Growth itself still creates cash flow pressure. A solar company buys panels, batteries, and irrigation systems before installation. A low-emissions rice platform supports farmers through a growing season and gets paid after harvest. Land restoration and agroforestry can take years before revenues fully materialise. That changes every cost decision. Each dollar saved extends runway, reduces dilution, and gives flexibility on when to raise next. Which is why I keep banging on about better debt finance for climate tech in emerging Asia. Expensive and dilutive equity is not built to finance working capital. Inventory deserves a loan against the asset, at a rate that matches the cash flow. $50k to $200k loans exist through microfinance. $50M+ facilities exist for established infrastructure. A fast-growing climate company needing $1M to $5M is where the system breaks down. It is easier for a bank to write a $100M green loan to a property developer than a $2M working capital line to a climate startup creating real emissions impact. That slows company growth and more importantly, it slows climate impact. Fewer solar systems installed, fewer farmers reached and fewer tonnes of emissions avoided. So climate founders in emerging Asia get creative. Agros started with a loan from me and a small group of LPs, which catalysed a $2M facility from EDFI. WasteX secured a $460k grant from P4G for biochar adoption. Ampd Energy and Full Circle Biotechnology took loans from existing shareholders for working capital. Rize secured a $650k facility from Rabobank for smallholder rice farmers transitioning to low-emissions. SOLshare’s loan from us catalysed a refinancing at a lower rate from a local Bangladeshi bank. It is still mostly cobbled together. The asset class deserves better. Finance is a core capability far earlier than in software. Map every order, every shipment, every install, every payment date. Build the worst case. Plan a more aggressive runway than projections suggest. Most need a fractional or full-time finance director far earlier than a SaaS business would. In climate, cash management is the strategy.

🔥 The Future of Climate Tech: 5 Takeaways from Hello Tomorrow 🔥 Busy days last week at Hello Tomorrow in Paris—lots of discussions, strong opinions, and a fair share of debate on the past, present, and future of climate tech. Moderating a panel on the topic, I had the chance to challenge some of the sharpest minds in the space: Liza Rubinstein Malamud (Carbon Equity), Rajesh Swaminathan (Khosla Ventures), and Laurie Menoud (At One Ventures)—right on stage at Hello Tomorrow. So, where does climate tech really stand today? Here are 5 takeaways that stood out: 1️⃣ Climate Tech’s Darwinian Moment Laurie put it bluntly: climate tech isn’t dead, but many companies relying solely on subsidies will be gone in the next 1-2 years. The survivors? Those with better performance and lower costs than existing alternatives. Capitalism is simple—if oil makes money, that’s where it goes. Climate solutions need to be a no-brainer. 2️⃣ US vs Europe: be resilient The panelists emphasised the importance of building business models that can thrive regardless of policy shifts or geography. At the same time, Liza urged European founders to think bigger. Meanwhile, Rajesh reminded us that “yesterday’s tweet” shouldn’t dictate investment decisions—the real wins come from betting on long-term, high-impact inflection points. 3️⃣ What’s Hot, What’s Not This topic itself was hot—plenty of debate, opposing views, and strong opinions. But there was clear consensus on one thing: the only metric that truly matters is strong unit economics. Without it, even the most innovative tech won’t scale. And yes, AI is hot and can play a role in climate, but beware of “AI washing.” It works when it adds real value—think accelerating mineral detection for mining or power management for data centres. 4️⃣ Making Money with Climate Tech Liza, speaking as a fund-of-funds manager, was very clear: climate tech has performed on par with general VC and PE. Cambridge Associates and Dealroom data back this up—the returns are there. In their portfolio, TVPI looks strong, but there’s a catch: lots of unrealised returns. The big question? Will markets open up again this year? That remains to be seen. 5️⃣ The #1 Rule for Climate Founders Laurie’s advice? Forget politics. Focus on economics. The best solutions will win because they outperform and underprice existing options. Rajesh added: the team you build is the company you build—hire talent from industries that have scaled successfully before. And Liza? Plan your entire fundraising journey early—each stage demands a different strategy. 💡 The TL;DR? The market is tough, but winning in climate tech means playing the long game—building companies that make sense with or without policy tailwinds. Last but not least, a big thank you to Arnaud de la Tour, Selma El Ouardi, Jack Fox-Male, and the entire Hello Tomorrow team—great work, and see you next year in the Netherlands! 🇳🇱 #venturecapital #climatetech #liveandkicking

🌍 The new report “Delivering on the UAE Consensus: Tracking progress toward tripling renewable energy capacity and doubling energy efficiency by 2030” lays bare where the world stands two years after #COP28. Jointly prepared by International Renewable Energy Agency (IRENA), the #COP30 Presidency, and the Global Renewables Alliance (GRA), this second edition shows that the pace of #renewables addition continues to improve - 581.9 GW of renewables added in 2024, the highest ever — however, the world remains off track to triple global renewable energy capacity by 2030. Meanwhile, improvements in energy efficiency reached only 1%, far from the 4% annual target set in the #UAEConsensus. 💰 The Missing Links To deliver on both goals, global investment must reach USD 5 trillion per year through 2030. Yet, in 2024, flows to emerging and developing economies were only one-fifth of what’s needed. Infrastructure and grids are also lagging behind. Without stronger investment in flexibility, forecasting, and resilience, the clean energy revolution will stumble at the system level. 🌦️ As the report shows, achieving these goals isn’t just about building more renewables — it’s about managing variability and anticipating the weather and climate risks that affect every solar panel and wind turbine. The World Meteorological Organization plays a crucial enabling role: ✅ Providing accurate weather and climate data to power #AI-based forecasting for wind and solar generation. ✅ Supporting climate-informed planning for grid infrastructure and storage systems. ✅ Delivering early warnings and risk assessments that protect energy infrastructure from extreme weather and climate shocks. If #IRENA provides the map of the global energy transition, #WMO provides the real-time radar — guiding system operators safely through the turbulence of a changing climate. Tripling renewables and doubling efficiency are within reach, but only if we connect energy policy with climate intelligence. To achieve resilience, we must make climate data a strategic asset — embedded in every decision that shapes our energy future. https://lnkd.in/eYFTmhWb

Very excited to share my most recent article in Forbes, focusing on the role of philanthropy in supporting climate innovation in emerging markets. Over the past few weeks, our team has had some great conversations with foundations and other partners who are supporting climate entrepreneurs in the some of the most vulnerable countries. Philanthropy is uniquely positioned to play a role here, but we need a wider aperture in terms of what it can and should do. The article proposes five areas where philanthropy can take on a wider agenda to not just fund more climate startups in these markets, but to build the talent pools and enabling ecosystems that support these companies. Here's a breakdown of the five areas: 1. New company building models: We don’t need just more climate entrepreneurship and innovation in developing countries, but we need it to be targeted at solving the most pressing problems. Purpose-built platforms - venture studios and builder models - can incubate startups with greater intentionality, offering technical capacity, market access, and tailored support that meet local needs. 2. Build fractional leadership networks: As much as more funding is needed to support climate startups in their early stages, matching them with the right talent at the right time can be critical. And there’s no guarantee that this talent is locally available. We need specialized programs that can match seasoned leadership - e.g. fractional CFOs, CMOs, and other C-level executives along with technical experts - who can provide critical guidance, strategic discipline, and credibility, making ventures more investment-ready and sustainable. 3. Ecosystem enablers and hubs: Climate tech benefits from enabling ecosystems, which often entail complex networks of universities giving birth to ideas, funds financing the development of prototypes, executive talent coming in from the corporate world and policymakers assessing how to incentivize the adoption of climate technologies. 4. Create linkages between emerging markets: Most funding, technology and talent transfer in climate tech tends to be concentrated between wealthy countries, but there are opportunities to strengthen ties between emerging markets themselves. Creating networks between regions fosters peer learning, market entry, and collaboration. 5. Prioritize adaptation and resilience: Often, adaptation and resilience (A&R) risks are the primary ways in which emerging markets first and foremost experience climate change. Increasing finance, company building and entrepreneurship support for A&R - health, disaster resilience, agriculture, and water - reflects the acute realities on the ground and brings direct benefits to vulnerable communities.

Impact startups in MENA are growing fast but funding strategies must evolve just as quickly. One of the questions I’m asked most often by founders is: “Where do we start when it comes to raising funds for climate or sustainability-focused ventures in this region?” Here’s how I usually break it down in 4 key pathways I’ve worked with or closely observed, each requiring a clear narrative, regional awareness, and the right positioning: 1. Government-backed innovation platforms These are not just about incubation, they are increasingly designed to de-risk startups and connect them to capital. 🔹 Example: Hub71 (Abu Dhabi) offers access to corporates, sovereign investors, and a growing base of VC partners through its Incentive Program. It's a launchpad for startups aligned with national priorities. 2. Climate-aligned positioning Framing your solution around climate resilience or adaptation is no longer optional—it’s a strategic funding move. 🔹 Example: ALTÉRRA, the $30B climate investment fund launched by the UAE at COP28, is designed to mobilize capital into areas like clean energy, food security, and nature-based solutions. Startups that clearly align with these priorities stand a stronger chance of attracting institutional and private funding. 3. Corporate sustainability partnerships Corporates in MENA are increasingly partnering with startups to accelerate their ESG goals—often offering pilot funding, technical support, or access to infrastructure. 🔹 Example: PepsiCo Middle East has launched several open innovation challenges in the region, focusing on sustainable packaging, water reuse, and food system transformation. These partnerships are a valuable entry point for startups ready to co-create scalable solutions. 4. Strategic VC alignment Venture capital in MENA is increasingly aligning with long-term sustainability themes—especially in climate tech and resource efficiency. 🔹 Example: VentureSouq, a MENA-based VC, launched its Climate Tech Fund I to invest in technologies tackling the climate crisis—from energy and mobility to the circular economy. They’re actively backing companies that blend strong commercial potential with measurable impact. The takeaway? It’s not just about raising funds, it’s about raising strategically. That’s how you align with where capital is moving in the region. If you found this useful, share it with a founder or ecosystem builder working on climate and impact in MENA. Let’s make these conversations more visible ;-) #ClimateFinance #MENA #ImpactStartups #StrategicFunding #GreenTransition #BusinessWithPurpose

The International Energy Agency (IEA) and Climate Club have released a crucial new report, "Policy Toolbox for Industrial Decarbonisation.” This report offers a comprehensive guide for governments to design and implement effective strategies to decarbonize heavy industry. Key Takeaways: The report categorizes policy instruments into three core areas: 1️⃣ Framework Fundamentals: ✔️ Long-Term GHG Emission Reduction Plans and Policies: This includes roadmaps, plans, targets, emissions trading systems (ETSs), carbon taxes, and tradeable performance standards (TPSs). ✔️ Mobilizing Finance and Investment: A variety of instruments are explored, from direct public funding and equity investments. 2️⃣ Targeted Actions for Specific Technologies and Strategies: ✔️ Managing Existing Assets and Near-Term Investment: This involves strategies like requirements for retrofit-ready builds, sunset clauses for high-emitting technologies, measures to reduce excess capacity, TPSs, and carbon product requirements (CPRs).  ✔️ Creating a Market for Near-Zero Emissions Materials: Policy instruments discussed include public procurement of near-zero materials, state-backed intermediaries, incentives for private procurement, collaborative procurements, sustainability certifications, and CfDs.  ✔️ Developing Earlier-Stage Technologies: R&D and demonstration funding, public-private partnerships, innovation programs, and regulatory sandboxes. ✔️ Accelerating Material Efficiency and Circularity: This includes modifying design regulations to incorporate lifecycle emissions and recyclability, incentivizing extended end-use lifetimes, and implementing demolition/landfilling fees. 3️⃣ Necessary Enabling Conditions: ✔️ International Co-operation and a Level Playing Field: This emphasizes co-ordinating carbon pricing, regulations, and subsidies across borders. Carbon border adjustments (CBAs) are explored as a mechanism to address carbon leakage.  ✔️ Infrastructure Planning and Development: Co-ordinated planning and public financing for infrastructure, such as CO2 transport and storage, clean energy grids, and material handling facilities. ✔️ Tracking Progress and Improving Data: Enhanced data collection, reporting, standards, definitions, certifications, and labelling. Challenges: ✴️ High upfront investment costs and long payback periods can deter private investment in decarbonisation technologies. ✴️ Companies might relocate production to regions with less stringent policies, undermining global emissions reduction efforts. ✴️ Resistance from industry, labor, and communities can hinder policy implementation. Opportunities: ✳️ Public support for R&D can drive breakthroughs in near-zero emissions technologies. ✳️ Decarbonization can create new markets, jobs, and economic growth. ✳️ Co-ordinated policy action can accelerate progress and create a level playing field. #IndustrialDecarbonisation #ClimateChange #IEA #ClimateClub #Sustainability #Policy #Decarbonization

The first half of 2024 saw a weak $11.3bn start, with investment finally returning to 2020 levels pre-climate tech hype. Over the past six months, the climate tech market has continued to constrict, with a noticeable downtick in deal count and funding in H1’24, affecting even early-stage investments like Seed and Series A. But it's not just climate tech, the broader venture market is in a slump from sticky inflation, high interest rates, and geopolitical turmoil. But it's not all doom and gloom. We’re also seeing signs that many companies and projects aren’t solely relying on VC funding anymore, as they’re starting to graduate from equity to project finance and debt in the race to deploy, deploy, deploy. Some new and interesting highlights here: 💰 H1’24 $11.3bn funding: Funding in the first six months of 2024 totaled $11.3bn, down 20% from H1’23 and down 41% from H2’23. 📈 Early-stage takes a hit: Seed funding declined 12% in H1’24 vs. H1’23, and Seed deal count decreased 30% for the same period for the first time. 💸 Round size: Average deal size for Seed, Series A, and Series B increased by 19%, signaling a flight to quality for performing companies making it past Series A. 📅 Time between rounds: The average time it takes a company to raise a Series B in 2024 is more than double the time it took three years ago, jumping from 11 months to 26 months between rounds ⛰ Series B Valley of Death: And the Valley of Death between Series A and Series B has become more precarious, as a large cohort of climate tech companies approach the milestone. 💥 Notable deals: The companies that were able to get funding this half-year represented many of this year’s emerging trends in climate tech: hype-y AI and the clean firm power it requires, high-flying Sustainable Aviation Fuels, and batteries leading the charge. Advanced geo developer Fervo Energy, thermal energy storage (TES) provider Antora Energy, and textile-to-textile recycler Syre raised massive rounds for hardware buildouts. Plus, steelmaker H2 Green Steel, lithium extractor Lilac Solutions, and Liquid Air Energy Storage (LAES) developer Highview Power all raised “FOAK” rounds to support commercial-scale project development. 👉 Check out the full Sightline Climate (CTVC) H1'2024 investment post with charts and analysis tracking investment, deal activity, FOAK deals, bankruptcies, time between rounds, and investor activity: https://lnkd.in/evG9_-_Y 👉 And read the key takes from Michelle Ma at Bloomberg Green: https://lnkd.in/er8pjdcd #climatetechvc #climatetech #funding

FM Nirmala Sitharaman announced ₹20,000 crore for Carbon Capture, Utilization and Storage (CCUS) over the next 5 years. For someone in the CO₂ industry, this isn't just environmental policy – it's a complete market transformation. Here's what's changing: 𝗖𝗢𝟮 𝗶𝘀 𝘀𝗵𝗶𝗳𝘁𝗶𝗻𝗴 𝗳𝗿𝗼𝗺 𝗹𝗶𝗮𝗯𝗶𝗹𝗶𝘁𝘆 𝘁𝗼 𝗮𝘀𝘀𝗲𝘁. Right now, 60% of India's emissions come from power, steel, cement, refineries, and chemicals. These sectors can't just switch to renewables overnight. CCUS lets them capture CO₂ and turn it into something valuable. 𝗧𝗵𝗲 𝗺𝗼𝗻𝗲𝘁𝗶𝘇𝗮𝘁𝗶𝗼𝗻 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝗶𝗲𝘀 𝗮𝗿𝗲 𝗺𝗮𝘀𝘀𝗶𝘃𝗲: → 𝗙𝗼𝗼𝗱 & 𝗕𝗲𝘃𝗲𝗿𝗮𝗴𝗲 – CO₂ for carbonation and preservation → 𝗠𝗲𝗱𝗶𝗰𝗮𝗹 & 𝗣𝗵𝗮𝗿𝗺𝗮 – Critical for cryotherapy and pharmaceutical processes → 𝗖𝗵𝗲𝗺𝗶𝗰𝗮𝗹𝘀 – Converting CO₂ into methanol, polymers, and building materials → 𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗢𝗶𝗹 𝗥𝗲𝗰𝗼𝘃𝗲𝗿𝘆 – Using CO₂ to extract more oil efficiently → 𝗙𝗶𝗿𝗲 𝗦𝗮𝗳𝗲𝘁𝘆 𝗦𝘆𝘀𝘁𝗲𝗺𝘀 – CO₂-based suppression systems India's CO₂ utilization market is projected to reach 3,500 thousand tonnes by 2035. That's not just capture and storage – that's industrial-scale revenue generation. 𝗣𝗹𝘂𝘀, 𝘁𝗵𝗲𝗿𝗲'𝘀 𝘁𝗵𝗲 𝗲𝘅𝗽𝗼𝗿𝘁 𝗮𝗻𝗴𝗹𝗲. Global markets are linking trade with carbon emissions. The EU's Carbon Border Adjustment Mechanism could cost Indian industries $1-1.7 billion without CCUS. This ₹20,000 crore protects our competitiveness. 𝗧𝗵𝗲 𝗶𝗻𝗳𝗿𝗮𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲 𝗼𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝗶𝘀 𝗲𝗾𝘂𝗮𝗹𝗹𝘆 𝗯𝗶𝗴 – CO₂ transport pipelines, storage facilities, demonstration plants. The entire supply chain needs to be built. 𝗔𝗳𝘁𝗲𝗿 𝘁𝗵𝗿𝗲𝗲 𝗱𝗲𝗰𝗮𝗱𝗲𝘀 𝗶𝗻 𝘁𝗵𝗶𝘀 𝗶𝗻𝗱𝘂𝘀𝘁𝗿𝘆, 𝗜 𝗰𝗮𝗻 𝘁𝗲𝗹𝗹 𝘆𝗼𝘂: we've always known CO₂ had value. Now the government is backing that vision with serious capital. This isn't just climate action. It's India preparing to lead the global CO₂ economy. #carboncapture #cleantech #co2 #sustainability

Two years ago, I called out the “finance for climate innovation” gap in then Commission President von der Leyen’s 2023 State of the Union speech. Last year, I called the "8x solutions from the Draghi Report" that addressed this. Today, reading the 2025 State of the Union and its 69-page progress document, I’ve checked back: how far has the EU come in implementing these eight #Draghi solutions to close that gap? 🌍 The good news: #climate and #energy targets and clean tech remain central in EU policy, with many new initiatives launched since 2023. ⚖️ The detail: while policy progress is visible, Europe’s machine is slow to deploy across Member States, and scaling innovation finance for private long-term investors, banks and insurers remains challenging. Here are my summary progress highlights against the eight 2024 calls: ✅ Horizon Europe "doubled" (€175bn will need ringfencing if it will survive). ✅ EIB stepping up with €70bn TechEU and cleantech guarantees. ✅ Renewables buildout advancing (solar on track, wind lagging). ✅ “Made in Europe” procurement criteria under the Clean Industrial Deal (possible double edged sword?). ✅ Critical Raw Materials Act implementing and designating 47 EU projects. Yet… ❌ ETS Revenues and the Innovation Fund can do more to support cleantech manufacturing. ❌ Funding architecture for industrial cleantech scale-ups remains fragmented leaving high hopes for Industrial Decarbonisation Bank and Decarbonisation Accelerator Act. 👉 Conclusion: Europe is directionally good, but the pace, detail and transparency of new finance tools will determine if we truly bridge the innovation gap and scale cleantech at home. Progress achieved (2/8): "Doubling" Horizon Europe; more clean tech guarantees and funding vehicles from the EU and EIB. Priorities in motion (4/8): Renewables buildout, Lead Market creation, InvestEU extension via ECF (more size needed), Critical Raw Materials strategy underway. Still MIA (2/8): Dedicated ETS revenues for cleantech manufacturing; more targeted Innovation Fund deployment. Overall: #Climate and #cleantech are central in EU #strategy, but delivery and up-scaling of public-private #finance instruments remains the execution challenge. Please read the article below, as this post-summary doesn't do it justice !!