The world of climate tech investment witnessed a significant transformation in 2024, primarily driven by the AI boom. This reshaping was about emerging technologies and sectors traditionally linked to energy and infrastructure. However, funding seems to be waning.
Funding Declines, But AI Powers New Opportunities in Climate Tech
According to PitchBook data, venture capital (VC) investment in climate tech declined globally for the third consecutive year.
Funding dropped from $25.9 billion in 2022 to $19.7 billion in 2023, and further to $17 billion in 2024, reflecting a 34% decrease over two years.

Pre-seed and seed rounds were particularly slow last year, dropping from 246 deals to 152 deals in the U.S. For climate-tech startups, raising a seed deal is a particularly tough ask, especially for hardware businesses requiring substantial capital expenditure before reaching a pilot product.

Climate tech remains a risky area for investment, even when money is cheap. The sector took heavy blows in 2024, including Northvolt, a lithium EV battery developer that raised $9 billion in equity and convertible debt, spiraling into bankruptcy in November. Universal Hydrogen, a startup developing a fully hydrogen-powered plane, also ran out of cash.
However, despite this decline, certain subsectors thrived. AI-driven data centers and their associated technologies emerged as pivotal drivers of growth, drawing substantial interest and funding from investors.
Sightline Climate’s review of 2024 climate tech trends highlighted that energy and building technologies, particularly those tied to AI data centers, bucked the declining investment trend.
- The energy sector saw a 12% increase in funding, reaching $9.4 billion, while building technologies grew by 10% to $2.7 billion. This surge was driven by the anticipated rise in energy consumption due to AI operations.
Generative AI models, like ChatGPT, consume nearly 10 times more energy per query compared to a standard Google search. To support such energy-intensive operations, data centers are predicted to increase their power demand by 2.4% annually until 2030. This energy requirement reverses a decade-long trend of flat growth.
Billions Flowing into Cleaner Data Centers
As AI technologies grow, so does the demand for cleaner and more sustainable data centers. Leading tech companies, including Google, Amazon, and Microsoft, have set ambitious emissions targets, creating opportunities for innovative climate tech solutions.
Kim Zou, CEO of Sightline Climate, highlighted that AI’s rapid rise presents both challenges and opportunities. Emerging clean power solutions, like nuclear and geothermal energy, as well as energy-efficient data center technologies, are now in the spotlight. Zou specifically highlighted that:
“On one hand, we’re seeing unprecedented load growth coming onto an already constrained grid. On the other hand, AI-led demand is driving momentum for emerging clean firm power solutions…”
In 2024, several notable investments reflected the urgency to meet AI’s growing energy needs sustainably, including:
Crusoe Energy’s $600 Million Raise
Crusoe Energy, originally focused on cryptocurrency mining, now provides vertically integrated AI services, including data centers optimized for clean energy. This December 2024 deal marked the largest climate tech investment of the year.
Amazon’s $500 Million Bet on X-Energy
Amazon partnered with X-Energy to deploy over 5 gigawatts of nuclear power projects in the U.S. by 2039. This capacity would represent about 10% of the additional energy needed to support U.S. data center growth through 2030, according to Goldman Sachs estimates.
Form Energy’s $405 Million Round
Form Energy developed an iron-based battery capable of storing power for up to 100 hours—20 times longer than most current systems. This innovation supports utilities in managing energy demand surges and the variability of renewable sources like wind and solar.
Scala’s $500 Million Investment
Scala, a Brazilian data center provider emphasizing clean energy, also secured a significant deal in September 2024. The company exemplifies a global push toward sustainable AI infrastructure.

Climate Tech Beyond Data Centers
While data centers dominated the climate tech landscape, other sectors also experienced notable advancements. In transportation, electric vehicle (EV) technologies continued to attract significant investment.
Companies working on EV battery recycling and efficiency saw increased funding, driven by a growing focus on the circular economy. Additionally, startups specializing in grid management solutions gained traction, addressing the challenges of integrating renewable energy sources into existing power networks.
In agriculture, innovations aimed at reducing methane emissions and improving soil health gained momentum. Technologies such as precision farming tools and methane-reducing feed additives drew investor interest, aligning with global efforts to lower greenhouse gas emissions from the agricultural sector.
The Role of AI in Shaping Investment Trends
AI’s influence extends beyond its direct impact on data centers. Venture capitalists are increasingly leveraging AI-driven analytics to identify promising climate tech startups. Predictive models and machine learning tools help investors assess risks and returns, enabling more informed decision-making in a complex and evolving market.
AI is also driving innovation within climate tech itself. Startups are using AI to optimize renewable energy systems, enhance energy storage technologies, and improve carbon capture methods. These advancements not only attract funding but also accelerate the deployment of climate solutions on a global scale.
Per Pitchbook data, VC investments in startups surged by nearly 30% in 2024, driven largely by the booming AI industry. Leading firms like Greycroft and Kleiner Perkins are doubling down on AI despite rising valuations.
However, climate-tech deals are declining, even as awareness grows about the need for clean energy investments. This is crucial to meet the energy demands fueled by AI’s rapid growth, highlighting a shift in industry priorities as AI takes center stage in the venture capital landscape.
A Future Fueled by Innovation
Clean energy investors anticipate challenging months ahead for startups as the energy industry adapts to Donald Trump’s administration. With uncertainty around project financing and regulations, some VCs are advising companies to delay fundraising efforts until the landscape becomes clearer.
Investors are now focusing on scalable solutions that address both immediate and long-term needs. From energy-efficient data centers to breakthroughs in battery technology, the innovations emerging today will shape the future of climate tech.
With billions of dollars flowing into transformative projects, the intersection of AI and climate tech offers a glimpse into a future where technology and sustainability go hand in hand.
- READ MORE: 2025: The Year Clean Energy Dominates with Record $670 Billion Investment, Trumping Oil & Gas
The post Climate Tech VC Investments Drop for the 3rd Year in a Row, AI to the Rescue appeared first on Carbon Credits.
Carbon Footprint
Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia
The voluntary carbon market is changing. Buyers are no longer focused only on large volumes of cheap credits. Instead, they want projects with strong science, long-term monitoring, and clear proof that carbon has truly been removed from the atmosphere. That shift is drawing more attention to high-integrity, nature-based projects.
One project now gaining that spotlight is the Sabah INFAPRO rainforest rehabilitation project in Malaysia. Climate Impact Partners announced that the project is now issuing verified carbon removal credits, opening access to one of the highest-quality nature-based removals currently available in the global market.
Restoring One of the World’s Richest Rainforest Ecosystems
The project is located in Sabah, Malaysia, on the island of Borneo. This region is home to tropical dipterocarp rainforest, one of the richest forest ecosystems on Earth. These forests store huge amounts of carbon and support extraordinary biodiversity. Some dipterocarp trees can grow up to 70 meters tall, creating habitat for orangutans, pygmy elephants, gibbons, sun bears, and the critically endangered Sumatran rhino.
However, the forest within the INFAPRO project area was not intact. In the 1980s, selective logging removed many of the most valuable tree species, especially large dipterocarps. That caused serious ecological damage. Once the key mother trees were gone, natural regeneration became much harder. Young seedlings also had to compete with dense vines and shrubs, which slowed the forest’s recovery.
To repair that damage, the INFAPRO project was launched in the Ulu-Segama forestry management unit in eastern Sabah.
- The project has restored more than 25,000 hectares of logged-over rainforest.
- It was developed by Face the Future in cooperation with Yayasan Sabah, while Climate Impact Partners has supported the project and helped bring its credits to market.
Why Sabah’s Carbon Removals are Attracting Attention
What makes Sabah INFAPRO different is not only the size of the restoration effort. It is also the way the project measured carbon gains.

Many forest carbon projects issue credits in annual vintages based on year-by-year growth estimates. Sabah INFAPRO followed a different path. It used a landscape-scale monitoring system and waited until the forest moved through its strongest natural growth period before issuing removal credits.
- This approach gives the credits more weight. Rather than relying mainly on short-term annual estimates, the project measured carbon sequestration over a longer period. That helps show that the forest delivered real, sustained, and measurable carbon removal.
The scientific backing is also unusually strong. Since 2007, the project has maintained nearly 400 permanent monitoring plots. These plots have allowed researchers, independent auditors, and technical specialists to observe the full growth cycle of dipterocarp forest recovery. The result is a large body of field data that supports carbon calculations and strengthens confidence in the credits.
In simple terms, buyers are not just being asked to trust a model. They are being shown years of direct forest monitoring across the project landscape.
Strong Ratings Support Market Confidence
Independent assessment has also lifted the project’s profile. BeZero awarded Sabah INFAPRO an A.pre overall rating and an AA score for permanence. That places the project among the highest-rated Improved Forest Management, or IFM, projects in the world.
The rating reflects several important strengths. First, the project has very low exposure to reversal risk. Second, it has a long and stable operating history. Third, its measured carbon gains align well with peer-reviewed ecological research and independent analysis.
These points matter in today’s market. Buyers have become more cautious after years of debate over the quality of some forest carbon credits. As a result, they now look more closely at durability, transparency, and third-party validation. Sabah INFAPRO’s rating helps answer those concerns and makes the project more attractive to companies looking for credible carbon removal.
The project is also registered with Verra’s Verified Carbon Standard under the name INFAPRO Rehabilitation of Logged-over Dipterocarp Forest in Sabah, Malaysia. That adds another level of market recognition and verification.
A Wider Model for Rainforest Recovery
Sabah INFAPRO also shows why high-quality nature-based projects are about more than carbon alone. The restoration effort supports broader ecological recovery in one of the world’s most important rainforest regions.
Climate Impact Partners said it has worked with project partners to restore degraded areas, run local training programs, carry out monthly forest patrols, and distribute seedlings to support rainforest recovery beyond the project boundary. These efforts help strengthen the wider landscape and expand the project’s environmental impact.
That broader value is becoming more important for buyers. Companies increasingly want projects that support biodiversity, ecosystem health, and local engagement, along with carbon removal. Sabah INFAPRO offers that mix, making it a stronger fit for the market’s shift toward higher-integrity credits.

The post Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia appeared first on Carbon Credits.
Carbon Footprint
Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story
Bitcoin’s recent drop below $70,000 reflects more than short-term market pressure. It signals a deeper shift. The world’s largest cryptocurrency is becoming increasingly tied to global energy markets.
For years, Bitcoin has moved mainly on investor sentiment, adoption trends, and regulation. Today, another force is shaping its direction: the cost of energy.
As oil prices rise and electricity markets tighten, Bitcoin is starting to behave less like a tech asset and more like an energy-dependent system. This shift is changing how investors, analysts, and policymakers understand crypto.
A Global Power Consumer: Inside Bitcoin’s Energy Use
Bitcoin depends on mining, a process that uses powerful computers to verify transactions. These machines run continuously and consume large amounts of electricity.
Data from the U.S. Energy Information Administration shows Bitcoin mining used between 67 and 240 terawatt-hours (TWh) of electricity in 2023, with a midpoint estimate of about 120 TWh.

Other estimates place consumption closer to 170 TWh per year in 2025. This accounts for roughly 0.5% of global electricity demand. Recently, as of February 2026, estimates see Bitcoin’s energy use reaching over 200 TWh per year.
That level of energy use is significant. Global electricity demand reached about 27,400 TWh in 2023. Bitcoin’s share may seem small, but it is comparable to the power use of mid-sized countries.
The network also requires steady power. Estimates suggest it draws around 10 gigawatts continuously, similar to several large power plants operating at full capacity. This constant demand makes energy costs central to Bitcoin’s economics.
When Oil Rises, Bitcoin Falls
Bitcoin mining is highly sensitive to electricity prices. Energy is the highest operating cost for miners. When power becomes more expensive, profit margins shrink.
Recent market movements show this link clearly. As oil prices rise and inflation concerns persist, energy costs have increased. At the same time, Bitcoin prices have weakened, falling below the $70,000 level.

This is not a coincidence. Studies show a direct relationship between Bitcoin prices, mining activity, and electricity use. When Bitcoin prices rise, more miners join the network, increasing energy demand. When energy costs rise, less efficient miners may shut down, reducing activity and adding selling pressure.
This creates a feedback loop between crypto and energy markets. Bitcoin is no longer driven only by demand and speculation. It is now influenced by the same forces that affect oil, gas, and power prices.
Cleaner Energy Use Is Growing, but Fossil Fuels Still Matter
Bitcoin’s environmental impact depends on its energy mix. This mix is improving, but it remains uneven.
A 2025 study from the Cambridge Centre for Alternative Finance found that 52.4% of Bitcoin mining now uses sustainable energy. This includes both renewable sources (42.6%) and nuclear power (9.8%). The share has risen significantly from about 37.6% in 2022.
Despite this progress, fossil fuels still account for a large portion of mining energy. Natural gas alone makes up about 38.2%, while coal continues to contribute a smaller share.

This reliance on fossil fuels keeps emissions high. Current estimates suggest Bitcoin produces more than 114 million tons of carbon dioxide each year. That puts it in line with emissions from some industrial sectors.
The shift toward cleaner energy is real, but it is not complete. The pace of change will play a key role in how Bitcoin fits into global climate goals.
Bitcoin’s Climate Debate Intensifies
Bitcoin’s growing energy demand has placed it at the center of ESG discussions. Its impact is often measured through three key areas:
- Total electricity use, which rivals that of entire countries.
- Carbon emissions are estimated at over 100 million tons of CO₂ annually.
- Energy intensity, with a single transaction using large amounts of power.

At the same time, the industry is evolving. Mining companies are adopting more efficient hardware and exploring new energy sources. Some operations use excess renewable power or capture waste energy, such as flare gas from oil fields.
These efforts show progress, but they do not fully address the concerns. The gap between Bitcoin’s energy use and its environmental impact remains a key issue for investors and regulators.
- MUST READ: Bitcoin Price Hits All-Time High Above $126K: ETFs, Market Drivers, and the Future of Digital Gold
Bitcoin Is Becoming Part of the Energy System
Bitcoin mining is now closely integrated with the broader energy system. Operators often choose locations based on access to cheap or excess electricity. This includes areas with strong renewable generation or underused energy resources.
This integration creates both opportunities and challenges. On one hand, mining can support energy systems by using power that might otherwise go to waste. It can also provide flexible demand that helps stabilize grids.
On the other hand, it can increase pressure on local electricity supplies and extend the use of fossil fuels if cleaner options are not available.
In the United States, Bitcoin mining could account for up to 2.3% of total electricity demand in certain scenarios. This highlights how quickly the sector is scaling and how closely it is tied to national energy systems.
Energy Markets Are Now Key to Bitcoin’s Future
Looking ahead, the connection between Bitcoin and energy is expected to grow stronger. The network’s computing power, or hash rate, continues to reach new highs, which typically leads to higher energy use.
Electricity will remain the main cost for miners. This means Bitcoin will continue to respond to changes in energy prices and supply conditions. At the same time, governments are starting to pay closer attention to crypto’s environmental impact, which could shape future regulations.

Some forecasts suggest Bitcoin’s energy use could rise sharply if adoption increases, potentially reaching up to 400 TWh in extreme scenarios. However, cleaner energy systems could reduce the carbon impact over time.
Bitcoin is no longer just a financial asset. It is also a large-scale energy consumer and a growing part of the global power system.
As a result, understanding Bitcoin now requires a broader view. Energy prices, electricity markets, and carbon trends are becoming just as important as market demand and investor sentiment.
The message is clear. As energy markets move, Bitcoin is likely to move with them.
The post Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story appeared first on Carbon Credits.
Carbon Footprint
LEGO’s Virginia Factory Goes Big on Solar as Net-Zero Push Speeds Up
The post LEGO’s Virginia Factory Goes Big on Solar as Net-Zero Push Speeds Up appeared first on Carbon Credits.
-
Greenhouse Gases7 months ago
Guest post: Why China is still building new coal – and when it might stop
-
Climate Change7 months ago
Guest post: Why China is still building new coal – and when it might stop
-
Greenhouse Gases2 years ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
-
Climate Change2 years ago
Bill Discounting Climate Change in Florida’s Energy Policy Awaits DeSantis’ Approval
-
Climate Change2 years ago嘉宾来稿:满足中国增长的用电需求 光伏加储能“比新建煤电更实惠”
-
Climate Change Videos2 years ago
The toxic gas flares fuelling Nigeria’s climate change – BBC News
-
Carbon Footprint2 years agoUS SEC’s Climate Disclosure Rules Spur Renewed Interest in Carbon Credits
-
Renewable Energy5 months agoSending Progressive Philanthropist George Soros to Prison?









