Climate tech funding falls by almost half as investors rush to AI

Global climate tech equity financing fell 40% in 2024, signaling an uphill battle for emerging decarbonisation technologies.

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There were 1,200 deals for a total of nearly $51 billion last year, compared to almost $84 billion in 2023, according to new BloombergNEF (BNEF) research.

This is the third straight year that venture capital and private and public equity financing have dropped for climate-focused companies.

While climate tech funding dropped, venture capital funding for all sectors increased. Among clean energy startups, nuclear companies raised the most as fusion efforts drew particular attention due to their potential to power data centres. They were led by Pacific Fusion Corporation, which raised a $900 million Series A round.