Every day, founders, investors and innovators are building the climate tech solutions we desperately need. Some are scaling fast, securing the funding and recognition they deserve.
Others (and maybe even the majority of companies) are working in a tougher landscape. Investors hesitate, markets are sceptical, and the solutions simply do not get the visibility they need.
We need impactful climate tech companies now more than ever, given the geopolitical reshift away from clean energy, with the US leading the way in backing out of pledges to phase out fossil fuels. For me, one thing is clear: climate tech mustn’t slow down, and neither must we.
Facing the facts
You might have read the debate around the question: “Is climate tech dead?” that has been floating around this year, fuelled by the most recent geopolitical shifts. I’m a big fan of data, so I conducted a pan-European survey asking climate tech founders and investors for their thoughts on the current situation.
The good news first: investor sentiment towards climate tech remains largely positive, with 63% of respondents describing it as “somewhat positive” and 13% as “very positive”. Founders are the most optimistic, not surprisingly. Why else would you dare to spend such an enormous amount of time and energy on something?
Securing funding remains a top priority, as companies navigate the challenges of scaling. Beyond capital, businesses are also focused on achieving strong product–market fit (PMF), improving unit economics and ensuring high customer satisfaction to drive long-term success. Stronger corporate partnerships and a stable regulatory environment are seen as key to sustaining momentum and removing roadblocks.
For the European climate tech ecosystem in 2025, policy and regulation are viewed as critical enablers, with respondents calling for consistent policy support and steady regulation to provide businesses with clarity. There is a strong preference for prioritising tangible, scalable solutions over speculative technologies, ensuring that the sector is seen as commercially viable rather than overhyped.
Collaboration and leadership remain essential, with stakeholders calling for bold decisions, optimism and stronger partnerships between corporates, governments and investors. Meanwhile, concerns over external pressures, such as US protectionist policies and shifting investor sentiment, highlight the need for resilience to sustain innovation and long-term impact in climate tech.
Where does this leave climate tech startups?
While climate tech startups should continue to forge forward, guided by the macrotrends suggesting climate tech investment is only going to increase in the long term, it is true that there are obstacles to face in the short term.
The biggest challenge is funding. With investors more hesitant than they have been in the past, securing funding becomes even more difficult for climate tech startups. In a difficult market, only the best pitches will grab investors’ attention. Luckily, the rules of what makes a good pitch remain the same. See my previous article, all about the most common pitch deck pitfalls and how to avoid them for more advice on that topic.
As for the question of whether climate tech is dead, the answer is no. Some have framed climate tech as a label that doesn’t work anymore. I’d argue that this is a metadiscussion that doesn’t help. What’s important is that we build impactful businesses that help to combat climate change. That’s what matters.
