Every day, founders, investors, and innovators are creating vital climate tech solutions. Some are quickly expanding, receiving the funding and acknowledgment they merit. Others face tougher conditions. Investors hesitate, markets are skeptical, and solutions lack necessary visibility.
The demand for impactful climate tech companies is greater than ever, particularly with geopolitical shifts moving away from clean energy, exemplified by the US retracting fossil fuel phase-out pledges. It’s crucial that climate tech progress and our efforts in this field do not diminish.
**Facing the Facts**
Discussions have emerged questioning, “Is climate tech dead?” spurred by recent geopolitical changes. As a data enthusiast, I conducted a pan-European survey among climate tech founders and investors regarding the current climate.
Here’s the positive: investor outlook on climate tech is generally optimistic, with 63% expressing “somewhat positive” and 13% “very positive” views. It’s no surprise founders are the most hopeful—consider the immense dedication they put forth.
Securing funding remains pivotal as companies address scaling challenges. Beyond capital, they’re focusing on strong product–market fit, improving economic efficiency, and ensuring high customer satisfaction for sustained success. Enhanced corporate collaborations and a stable regulatory landscape are essential for maintaining momentum and overcoming hurdles.
For Europe’s climate tech scene in 2025, policy and regulation are vital, highlighting the need for consistent support and regulation for clarity in business. There’s a preference for prioritizing tangible, scalable solutions over speculative technologies, positioning the sector as economically sound rather than overhyped.
Collaboration and leadership are crucial, requiring bold choices, optimism, and strengthened partnerships among corporations, governments, and investors. Concerns about external pressures, such as US protectionist measures and changing investor sentiment, emphasize the need for resilience to maintain innovation and lasting impact in climate tech.
**Where Does This Leave Climate Tech Startups?**
Climate tech startups should persist, prompted by macro trends indicating long-term investment growth, despite short-term challenges.
The primary challenge is funding. As investors grow more cautious, securing funding becomes harder for climate tech startups. In a difficult market, only outstanding pitches will attract investors. Fortunately, the principles of a strong pitch remain unchanged. Refer to my [previous article](https://www.eu-startups.com/2024/05/the-most-common-pitch-deck-pitfalls-and-how-to-avoid-them/) for insights on avoiding common pitch deck mistakes.
To the question of whether climate tech is dead, the answer is no. Some argue the label no longer fits. I view this as an unhelpful metadiscussion. The focus should be on building impactful businesses to fight climate change, which is what truly matters.