State of Climate Tech

Introducing the 3rd annual

State of Climate Tech Report

The State of Climate Tech 2024 explores the key trends, challenges, and opportunities in this rapidly evolving ecosystem. It offers comprehensive insights into the forces shaping the future of climate tech, providing investors, corporations, and key financial decision-makers with the critical insights needed to capitalize on emerging opportunities and drive the adoption of impactful solutions.

What’s Inside

Introduction

Executive summary

A word from our sponsor

Key takeaways

A Year In Review

Funding and deal activity

Exit activity

Regional analysis

Thematic and trend analysis

The Stakeholders’ Voice

Innovators

1. Overview
2. Fundraising challenges and opportunities
3. Market trends and sentiment

Investors

1. Overview
2. Investment focus and strategy
3. Capital deployment
4. Future outlook and opportunities

Corporations

1. Overview
2. Collaboration goals and strategies
3. Future outlook and opportunities
4. M&A activity

Ecosystem Supporters

1. Overview
2. Role and impact
3. Collaboration and ecosystem dynamics
4. Future outlook and opportunities

Research Methodology

Report scope and definitions

Net0 platform/NZI data

Research methods

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Key Highlights

$1B+ debt giga rounds in Europe reversed 2023's downward funding trend

Despite a 14% decline in equity investment to its lowest point since 2020, debt financing propelled total Climate Tech investments past 2023 levels, driven by 10 giga-rounds that accounted for 26% of the projected $92B, primarily in large-capacity expansions and market-ready tech.

US leads in equity, Europe dominates debt giga-rounds

While US equity investment reached $22.4B in 2024—significantly higher than Europe’s $15.7B—Europe took the overall funding lead for the first time, driven by 7 of the year’s 10 giga-rounds, totaling $21.3B.

60% of corporations expect to increase M&A activity in the coming years

Corporations are intensifying their role in Climate Tech, with 1 in 2 reporting increased involvement in 2024, while 60% plan more aggressive M&A strategies, despite scaling and cultural challenges.