Climate Flash Report

Daily climate technology and sustainability news - Updated: 2025-08-26

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The latest climate technology and sustainability developments as of August 26, 2025, highlight significant funding and innovation momentum across climate tech startups, clean energy, ESG investing, and climate policy:

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Climate Tech Startups

U.S. climate tech funding rose 21% in H1 2025 compared to last year, despite economic and political challenges[1]. The annual Trellis list spotlights 25 early-stage startups innovating in energy, carbon, transport, industry, and nature sectors, with a showcase event planned for October 2025[1]. Notably, Climate Tech Partners secured over $50 million in funding, including a $30 million anchor investment from Australian Ethical Investments and the Clean Energy Finance Corporation, supported by corporate partners like Qantas and Airbus. Their model integrates demand validation and sector-specific decarbonization solutions to accelerate Series A climate tech companies[2].

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Clean Energy & Carbon Removal

Equatic, a startup developing patented seawater electrolysis technology for simultaneous CO₂ removal and green hydrogen production, raised $11.6 million in Series A funding led by Catalytic Capital for Climate and Health (Temasek Trust) and Kibo Invest. This funding will scale their first commercial 100,000-tonne carbon removal facility, advancing both carbon capture and clean hydrogen generation[4].

•

ESG Investing

Institutional investors continue to back climate tech with strategic, industry-integrated funding approaches, as seen with Climate Tech Partners’ collaborative venture model that aligns capital deployment with corporate customer pathways, enhancing real-world emissions reduction impact[2].

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Climate Policy & Funding Opportunities

The European Commission’s Cascade Funding program offers 16 funding opportunities in August 2025 for SMEs, startups, and researchers, supporting innovation in digital infrastructure and sustainability[5]. Additionally, there are numerous open calls and grants globally targeting climate, biodiversity, and food systems innovation, including agroforestry, circular economy pilots, and biotech for resilient crops, with 94 opportunities listed as of late July 2025[3].

•

Carbon Impact Metrics

Equatic’s technology aims for a commercial-scale facility capable of removing 100,000 tonnes of CO₂ annually, coupling this with green hydrogen production to provide dual climate benefits[4]. Climate Tech Partners focuses on technologies with validated demand and sector-specific decarbonization potential, though specific carbon impact metrics vary by portfolio company[2].

In summary, August 2025 sees robust investment flows into climate tech startups with innovative carbon removal and clean energy solutions, supported by growing ESG-aligned institutional capital and policy-driven funding programs fostering sustainability and decarbonization innovations worldwide.