Climate tech covers a range of innovations designed to reduce greenhouse gas emissions, improve energy efficiency, and promote sustainable practices. From carbon capture to renewable energy, and sustainable agriculture to waste management, climate tech startups are creating significant changes worldwide.
In 2023, the total enterprise value of global climate tech startups reached $2.5 trillion, marking a 45-fold increase over the last decade. The US led climate tech funding, followed by China, the UK, and Sweden. Since 2018, the US has invested over $131 billion in climate tech startups, about 2.4 times more than China. In 2023 alone, these startups secured funding through over 2,800 rounds from more than 4,100 investors.
Below are some of the fastest-growing climate tech startups making a big environmental and societal impact. Let’s explore these innovators.
1. Swytch
- Founded: 2017
- Location: London, United Kingdom
- Total Funding: $6.4 million
- Growth Status: Rapid expansion
Swytch offers affordable kits to convert regular bikes into e-bikes, including a motor wheel, a battery pack, and a handlebar-mounted controller. These kits fit most bicycles and provide up to 96 kilometers of electric assistance at speeds up to 24 km/h, starting at $325 per kit. This initiative promotes eco-friendly transportation and reduces greenhouse gas emissions.
2. Pachama
- Founded: 2018
- Location: California, United States
- Total Funding: $88.3 million
- Growth Status: Rapid expansion
Pachama uses AI, satellite imagery, and remote sensing to verify and monitor carbon offsets from reforestation and conservation projects. They offer an online marketplace for verified carbon offsets and detailed impact reports. In 2024, Shopify partnered with Pachama to support a reforestation initiative in Brazil.
3. Greyparrot
- Founded: 2019
- Location: London, United Kingdom
- Total Funding: $30.83 million
- Growth Status: Explosive
Greyparrot develops AI-powered vision systems for waste sorting facilities. Their systems identify and classify waste materials in real-time, providing detailed reports on waste composition. Greyparrot’s technology improves the efficiency and accuracy of waste management operations.
4. Kula Bio
- Founded: 2018
- Location: Massachusetts, United States
- Total Funding: $72.1 million
- Growth Status: Steady
Kula Bio focuses on replacing synthetic fertilizers with advanced nitrogen-fixing technology using naturally occurring microbes. These microbes transform atmospheric nitrogen into a form that plants can absorb, promoting soil health and reducing greenhouse gas emissions.
5. NuScale Power
- Founded: 2007
- Location: Oregon, United States
- Total Funding: $469.6 million
- Growth Status: Accelerated
NuScale Power develops cost-effective nuclear power solutions with its Small Modular Reactor (SMR) technology. These modular reactors can be assembled on-site to form scalable power plants, generating up to 924 megawatts of electricity. This innovative approach reduces capital costs and construction time compared to traditional nuclear plants.
6. ZeroAvia
- Founded: 2017
- Location: California, United States
- Total Funding: $260 million
- Growth Status: Rapid Expansion
ZeroAvia creates hydrogen-electric powertrains for aircraft, aiming to reduce aviation’s carbon footprint. They completed their first test flight with a hydrogen-electric propulsion system in 2023 and have partnerships with major players like Airbus and British Airways.
7. Sylvera
- Founded: 2020
- Location: London, United Kingdom
- Total Funding: $95.3 million
- Growth Status: Explosive
Sylvera provides transparency in the carbon offset market through AI and satellite imagery. They developed a rating system for carbon offset projects, helping businesses and governments identify high-quality offsets.
8. NexWafe
- Founded: 2015
- Location: Baden-Wurttemberg, Germany
- Total Funding: $103.5 million
- Growth Status: Accelerated
NexWafe accelerates solar energy adoption with its low-cost, high-efficiency silicon wafers. Their EpiWafers technology reduces production costs and environmental impact, enhancing solar cell performance.
9. Redwood Materials
- Founded: 2017
- Location: Nevada, United Kingdom
- Total Funding: $3.8 billion
- Growth Status: Explosive
Redwood Materials, founded by Tesla co-founder JB Straubel, recovers and recycles materials from lithium-ion batteries and electronic waste. They use advanced recycling technologies to recover valuable metals, collaborating with industry leaders to integrate recycled materials into manufacturing processes.
10. Charm Industrial
- Founded: 2018
- Location: California, United States
- Total Funding: $100 million
- Growth Status: Accelerated
Charm Industrial uses pyrolysis to convert organic waste into biochar, which can be stored in soil for centuries. This process reduces greenhouse gas emissions and promotes carbon-negative solutions.
11. CarbonCure Technologies
- Founded: 2012
- Location: Nova Scotia, Canada
- Total Funding: $92.4 million
- Growth Status: Rapid Expansion
CarbonCure Technologies reduces the carbon footprint of concrete production by injecting recycled carbon dioxide into fresh concrete. This enhances concrete properties while permanently sequestering CO₂.
12. Fervo Energy
- Founded: 2017
- Location: Texas, United States
- Total Funding: $431 million
- Growth Status: Explosive
Fervo Energy uses advanced drilling and reservoir management techniques to improve geothermal well efficiency. Their first power plant opened in 2023, and they plan to build a large project in Utah to power 300,000 homes.
13. Commonwealth Fusion
- Founded: 2018
- Location: Massachusetts, United States
- Total Funding: $2 billion
- Growth Status: Rapid expansion
Commonwealth Fusion, a spin-off from MIT, aims to develop practical fusion energy. Their SPARC project is designed to generate more energy than it consumes, paving the way for safe, green, unlimited fusion power.
14. Northvolt
- Founded: 2016
- Location: Stockholm, Sweden
- Total Funding: $13.8 billion
- Growth Status: Explosive
Northvolt produces high-performance lithium-ion batteries with a minimal carbon footprint. Their recycling program reclaims materials from used batteries, creating a closed-loop system. Northvolt aims to produce 150 GWh of lithium-ion cells annually by 2030.
These startups are making strides in climate tech, driving innovation and sustainability. Keep an eye on these companies as they continue to shape the future of our planet.
