December 11, 2025
Climate technology has attracted over $312 billion globally from venture capital and private equity between 2014 and 2024, marking its emergence as a core pillar of the energy transition. These sectors are still evolving, and while investment has accelerated, operational discipline has not kept pace. The result: ideas often outpace execution. Despite prior policy support through vehicles such as the U.S. Inflation Reduction Act (IRA), investors have faced high-profile setbacks from scaling missteps, supply chain bottlenecks and cost overruns. As policies shift, the urgency to pair capital with operational rigor has only grown. This landscape is testing assumptions, exposing fragile models and demanding sharper risk strategies.
