Climate Flash Report

Daily climate technology and sustainability news - Updated: 2025-10-30

Sustainability intelligence that saves the world

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📈 Real-time prices • Updated daily with fresh content • Last updated: 2025-10-30 08:07

Climate Tech Startups

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Funding Challenges and New Coalitions

Despite a 19% year-over-year drop in global climate tech venture and growth investment in the first half of 2025, totaling $13.2 billion, startups continue to innovate, focusing on proving unit economics and customer value[5]. In response to shrinking federal support, over a dozen major venture capital firms—including Khosla Ventures, Breakthrough Energy Ventures, and DCVC—have formed the All Aboard Coalition, aiming to close a $300 million fund by the end of October 2025 to support climate tech startups on the brink of commercialization[1]. This comes as direct air capture startups, for example, saw venture funding plunge over 60% year-over-year to just $58 million in Q1 2025[1].

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Startups to Watch

The Trellis “25 Climate Tech Startups to Watch” list, announced this week, features 25 companies from 13 countries that have collectively raised over $750 million. The winner, selected by live audience voting at VERGE in San Jose, will be crowned “Trellis Startup of the Year”[5].

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Regional Highlights

In the Pacific Northwest, climate tech and clean energy companies captured nearly 40% of all regional investment dollars in 2025. Notable deals include TerraPower ($650 million for advanced nuclear reactors), Group14 Technologies ($430 million for battery materials), and Helion Energy ($425 million for fusion energy)[6].

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Incubators and Accelerators

ClimateHaven in New Haven continues to support early-stage climate tech startups, especially those spun out of Yale, by providing mentorship and connections despite tighter funding conditions[3].

Clean Energy

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Nuclear and Fusion Surge

Next-generation nuclear and fusion energy are attracting significant capital, with TerraPower and Helion Energy securing over $1 billion combined in 2025[6].

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Energy Storage and Carbon Capture

Battery technology (e.g., Group14 Technologies) and carbon capture startups are gaining commercial traction, though overall investment in carbon removal has cooled[5][6].

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Policy Headwinds

The Trump administration’s rollback of Inflation Reduction Act incentives and recent halting of a major offshore wind project have created uncertainty, but tailwinds remain for technologies aligned with AI/data center growth, such as nuclear, geothermal, and energy storage[5][6].

ESG Investing

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VC Focus

Leading climate tech VCs like Breakthrough Energy Ventures and Lowercarbon Capital continue to prioritize decarbonization across energy, agriculture, and transportation[2].

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Impact Share

Climate tech now attracts 80–90% of all impact investment dollars, far outpacing social impact startups[7].

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Global Leaders

The US remains the top country for climate tech funding ($147 billion since 2018), with the Bay Area and Boston as leading hubs. China, the UK, Germany, and France follow, but the US leads by a wide margin[7].

Climate Policy

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Federal Retreat

The US federal government has significantly reduced climate spending, freezing grants and rescinding funding, which has narrowed pathways for startups reliant on public support[1][3].

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International Grants

The Catalytic Climate Finance Facility (CC Facility) awarded $870,000 in grants on October 29, 2025, to three financial vehicles in Asia and Africa focused on maritime decarbonization, climate-resilient agriculture, and clean energy transition. These grants aim to mobilize private capital in developing economies where foreign aid is declining[4].

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Blended Finance

Initiatives like the CC Facility are increasingly seen as critical to bridging the gap left by reduced public funding, especially in emerging markets[4].