Clima Now’s Post

As we looked ahead at the beginning of the year, we now want to look back to the year 2024 in Climate Tech. It’s time to reflect: 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬 𝐢𝐧 2024: 🚧 The World Economic Forum Global Risks Report highlighted climate-related risks as the top global risks for the next 10 years. Despite initial optimism fueled by initiatives like the U.S. Inflation Reduction Act, climate tech funding dropped by 29% to $56 billion, with its share of total VC and PE investments decreasing from 11% to 8%. 🚧 Deals shifted from early-stage to mid- and late-stage transactions, indicating reduced risk appetite among investors. Large corporations played a more significant role and later-stage investments underscore the important role of early-stage investors such as Clima Now in nurturing innovative breakthrough technologies. 𝐒𝐞𝐜𝐭𝐨𝐫𝐚𝐥 𝐓𝐫𝐞𝐧𝐝𝐬: 📈 Energy-related startups increased their share of climate tech funding to nearly 35% in 2024, aligning closer to their emission-based share. However, the built environment and industrial sectors remain underfunded, while mobility is overfunded. 📈 As global temperatures in 2023 rose to 1.45°C above pre-industrial level and with 2024 on track to be the hottest year ever recorded, adaptation and resilience (A&R) solutions gained traction. These solutions accounted for 28% of climate tech deals in 2024, highlighting a growing focus on addressing immediate climate change impacts. 2025 𝐎𝐮𝐭𝐥𝐨𝐨𝐤: 🔮 The outlook is mixed due to modest economic growth, global conflicts, and potential policy setbacks in the US, specifically in carbon capture and industrial decarbonization. However, the Inflation Reduction Act has already spurred $493 billion in clean technology investment, expected to have lasting effects. 🔮Europe is set to enhance innovation and decarbonization through initiatives like the Green Deal, addressing supply chain security and simplifying investment processes. 🔮The maturation of AI technology will significantly influence global sustainability efforts, necessitating careful monitoring of its environmental impacts. #ClimateTech #Investments #ImpactInvesting Nathalie Moral Marco Schneider Maurin Rüegg Corinne Graessle Anna Alexandra Staubli Claudia P. Martin Meili Daniel Meili Ruedi Gerber Franziska Heidenreich

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