Climate Tech Funding Fell 40% in 2024 as Investors Rushed to AI
Equity financing for climate technologies slumped in 2024 as investors switched to artificial intelligence, signaling an uphill battle for emerging efforts in decarbonization.
Solar cell components at the solar cells and modules manufacturing facility in Gujarat, India.
Photographer: Prashanth Vishwanathan/BloombergGlobal climate tech equity financing fell 40% in 2024, signaling an uphill battle for emerging decarbonization technologies.
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 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.