Climate Tech Investment 2025 Year in Review (Sightline Climate)

Summary

• Climate tech investment rose 8% in 2025, with $40.5bn in annual investment as new power demand fuels growth.p.1
• Deal count fell to a four-year low even as funding rose 8%.p.3
• Cumulative climate investment crossed $250bn as growth slows.p.4
• Growth stage investment rebounded in 2025, while early-stage declined.p.6
• Exits stayed high on acquisitions, while the SPAC route continued to shrink.p.12
• Climate funds crossed $100bn as confidence in renewables stays high.p.16

Key insights

1. Climate tech funding rose 8% in 2025.p.3
2. Annual climate tech investment reached $40.5bn.p.1
3. Cumulative climate investment crossed $250bn as growth slows.p.4
4. Data centers boosted clean firm power, while a China deal reversed the drop in transport.p.10
5. Investor participation thinned across the stack, with the sharpest declines at late-stage and growth.p.14
6. Funds crossed $100bn, with confidence in renewables staying high.p.16