Is Climate Tech Dead?
March 2025
Featuring: Max Bray (Earth), moderating wirh Matthew Blain (Voyager) & Sarah Jones (Zero Carbon Capital)
The panel tackled tough questions with no easy answers—from whether climate tech is still investable to whether we need a new name for the sector.
🔥 So… Is Climate Tech Dead?
💰 There’s still capital—but it’s tighter.
- $86B in unallocated climate-focused VC dry powder globally.
- Big funding rounds ($100M+) fell 47% YoY.
- Exits are happening (Carbon Engineering, Parkwind), but M&A activity is down 25% YoY.
📊 The energy transition is real—but investor sentiment is shaky.
- $2T invested in clean energy in 2024, up from $1.8T.
- Heat pumps outsold gas boilers in the US for the first time.
- But ESG tech markets are down 54% YoY.
💭 Sarah: "There’s still plenty of money, but the easy money is gone. If you’re not showing venture-scale outcomes, good luck raising."
🇬🇧 UK vs 🇺🇸 US: Who’s Doing Climate Tech Better?
🌍 UK founders have it harder than US founders.
- Series B/C is a funding dead zone—strong early-stage, weak growth capital.
- US IRA subsidies have shifted investment priorities—UK companies can't compete. Who knows if this will stay the same under Trump?
💬 Matthew: "The UK is great for early-stage climate, but if you want to scale, you’re probably going to the US. The risk appetite here just isn’t the same."
🔄 Do We Need to Stop Calling It ‘Climate Tech’?
💥 Some say the branding is now a liability.
- Investors, media, and politicians are turning against ESG/climate branding.
- Some firms now pitch as resilience tech, deeptech, industrial tech.
💬 Max: "At the coal face in VC, ‘climate tech’ has become a dirty word."
💭 Sarah disagreed: "There’s been too much hype, sure. But we should stick to our guns—climate tech is what we do."
💬 Matthew: "It’s not the words—it’s the economics. If your business only works with a green premium or policy tailwinds, you’re in trouble."
🤖 AI & Climate Tech – Friend or Foe?
⚡ AI is already transforming climate tech but…
- VCs are chasing AI hype, diverting capital and talent.
- Data centers already use 3% of global electricity, expected to double by 2026.
💬 Matthew: "AI is useful, but in fundraising? It’s a problem. Climate startups now compete against AI deals."
🚀 The Takeaway?
- Climate tech isn’t dead—it’s evolving.
- Founders must focus on economics, not just impact.
- UK is strong for early-stage, but growth capital is in the US.
- Hype cycles are over—real businesses will win.
Huge thanks to Matthew and Sarah for a brilliant discussion—and especially to Max for moderating & suggesting the event (+paying for the pizzas!) and to our hosts Octopus Electric Vehicles.
