1、April 2025FUTURE OF CLIMATE TECH 202523Letter from the Authors4Macro9Capital14Company Operations17AI,Electricity and the Grid21ExitsThe climate tech ecosystem is generally healthy.The slower-funding environment has pushed companies to focus on capital efficiency and manage burn,which is ultimately h

2、ealthier than the unbridled burn we witnessed in late 2021 and early 2022.Signs of growth are emerging,with trailing 12-month venture investment increasing,company formation remaining strong and early-stage activity still relatively vibrant.”There is no getting around it,US climate policy is weaker

3、today.The Trump administration has pulled out of the Paris Climate Agreement,fired EPA scientists,defunded the National Oceanic and Atmospheric Association and initiated executive orders pausing climate-related Inflation Reduction Act(IRA)funding.As a result of the changes,cost-effective climate tec

4、hnology must play a larger role to make up for the vacuum of weaker policy.Adoption of climate technology and solutions will increasingly rely on economic imperatives.Climate change isnt a future event;it is happening today.We dont just see the warming climate in esoteric graphs but feel it in our c

5、ommunities:severe fires burning neighborhoods in the West,more frequent hurricanes in the Southeast and heat waves in Europe.We are paying a high economic price.The number of billion dollar-plus disaster events has increased five-fold since the 1990s when adjusted for inflation.Existing climate tech

6、nologies are expanding.Wind and solar are growing faster than any other generation source.Solar added nearly 600 GW of installed capacity in 2024,up from just 250 GW in 2022.US storage saw a 33%increase in deployments between 2023 and 2024.Wind and solar are still the cheapest levelized cost of ener