Technology Focused on Climate Change Alone Cannot Secure Our Future
In the realm of climate tech, 2025 presents a mixed but evolving landscape. Despite a decline in equity funding to $23.5 billion in H1 2025 — one of the lowest since 2020 — investments remain substantial, particularly through non-dilutive capital such as public grants and debt, which are increasingly important for scaling infrastructure-ready solutions.
This shift from peak equity funding towards diverse capital sources supports mature and infrastructure-heavy climate solutions. The global climate tech market is growing rapidly, predicted to reach between $115 billion by 2030 and over $235 billion by 2034. Sustainable energy, carbon capture, and AI-driven innovations are leading this growth.
Key technological trends influencing climate tech include the use of artificial intelligence for energy forecasting, carbon tracking, and climate modeling; the adoption of Internet of Things, blockchain, biotechnology, and robotics for large-scale environmental solutions; and increased focus on green hydrogen and direct air capture technologies.
AI and data-driven climate tech solutions hold promise for more effective climate adaptation strategies tailored to vulnerable populations. They can improve disaster readiness, optimize energy access, and reduce emissions in ways that may lower costs and environmental burdens for disadvantaged areas. However, the direct equity outcomes depend on how these technologies and investments are deployed and integrated into social policies.
While climate tech can facilitate greater energy efficiency and resilience, there is a well-recognized risk that without intentional inclusion frameworks, marginalized communities could be left behind or even adversely affected by inequitable resource distribution or job displacement resulting from automation and industrial shifts.
The climate tech sphere remains largely white in membership and workforce, despite the disproportionate impacts of climate change on people of color. The need for further research and policy attention to ensure that technological progress benefits marginalized populations broadly becomes increasingly apparent.
Meanwhile, the global movement for a just transition is the most comprehensive proposition to transition from high resource extraction and worker exploitation towards regenerative economies and ecological well-being. Local farmers, growers, and stewards already hold knowledge needed for sustainable fishing, improving soil health, and regenerating forests. By channeling resources towards human capital, such as incubating the next generation of climate activists, we can foster a more equitable and sustainable future.
References:
[1] Climate Tech Vanguard 2022: State of the Market Report. (2022). Breakthrough Energy. [2] Climate Tech Investment Report H1 2025. (2025). PwC. [3] The Future of Climate Tech: Insights from the Frontier. (2023). McKinsey & Company. [4] The State of Climate Tech 2024. (2024). Energy Innovation.
- In the realm of climate tech, the shift towards diverse capital sources such as public grants, debt, and non-dilutive capital, is bolstering the growth of mature and infrastructure-heavy climate solutions.
- The global climate tech market is predicted to reach between $115 billion by 2030 and over $235 billion by 2034, with sustainable energy, carbon capture, and AI-driven innovations leading this growth.
- Key technological trends influencing climate tech include the use of artificial intelligence for energy forecasting, carbon tracking, and climate modeling alongside the adoption of IoT, blockchain, biotechnology, robotics, AI, and increased focus on green hydrogen and direct air capture technologies.
- AI and data-driven climate tech solutions can provide effective climate adaptation strategies tailored to vulnerable populations, improving disaster readiness, optimizing energy access, and reducing emissions, yet the direct equity outcomes depend on their deployment and integration into social policies.
- Despite the disproportionate impacts of climate change on people of color, the climate tech sphere remains largely white in membership and workforce, necessitating further research and policy attention to ensure technological progress benefits marginalized populations.
- The global movement for a just transition aims to transition from high resource extraction and worker exploitation towards regenerative economies and ecological well-being, with resources channeled towards human capital such as incubating the next generation of climate activists to foster a more equitable and sustainable future.
