In 2023, most startup investments went down, but areas focusing on clean technology and sustainability didn’t face as much of a decline.
According to data from Crunchbase, around $13.9 billion was invested globally this year in companies working on things like recycling batteries and developing crops that conserve water. This investment amount is similar to what was seen last year.
Riding the Sustainability Investment Wave

Their analysis looks at the funding for global sustainability in 2023 compared to the past 4 years. The chart above shows the total amount of investments in billion dollars and total number of rounds (363).
In the United States, funding specifically aimed at sustainability took a bigger step back this year, as shown below. However, investments in clean technology haven’t dropped as severely as in many other areas. And funds dedicated to this field are still actively supporting new projects.

The same trend was observed in VC funding for climate-tech startups specializing in carbon and emissions technology per PitchBook’s report. These companies received $7.6 billion in Q3 this year, exceeding the sector’s prior record by almost $2 billion.
Both funding trends defy the overall downward trend in fundraising.
Sectors That Got the Most Money
A lot of money this year went into supporting companies working on batteries. Specifically, companies in the battery space received the most significant amount of funding. Some of these companies even received $1 billion or more in financial support.
Several startups top the list with the most funding.
For instance, a French company focusing on making low-carbon batteries, Verkor, bagged over $2 billion through loans and investments. Another well-known company, Northvolt, producing lithium-ion batteries, raised over $1 billion via a convertible note. A battery recycling company based in Nevada, Redwood Materials, was able to attract $1 billion.
Apart from batteries, there’s also been a noticeable increase in interest towards capturing and storing carbon to combat climate change. This heightened investment is driven by alarming climate data suggesting severe consequences if atmospheric carbon levels continue to rise.
Numerous new companies aiming to remove and store CO₂ have received funding this year. Some of these startups are working on creating eco-friendly concrete to reduce the carbon emissions associated with its production. CarbonCure Technologies and C-Crete Technologies are popular examples.
Some companies are locking away CO₂ in soil and the oceans. Loam Bio and Charm Industrial, which both store carbon in soil, raised >$100 million each. Meanwhile, Ebb Carbon ($23M) and Captura ($12M) captured investors’ eyes with their innovative ocean-based removal technologies.
This surge in funding reflects the recognition that, despite the slow progress in adopting clean energy sources, there’s an urgent need for alternative solutions.
According to an IPCC report, strategies to limit global warming to 1.5°C often involve human-led efforts to remove carbon dioxide. And that’s despite the fact that these methods involve uncertain risks.
Alongside advancements in carbon capture, investments in climate-related software have continued. While there are fewer large-scale funding rounds exceeding $100 million compared to 2021 and 2022, there remains a steady flow of investments in software aimed at promoting sustainability.
Power Players in Climate Investment
In 2023, many of the most active investors in clean technology have become even more involved.
This is notable because a small group of investors focused on climate-related projects typically lead in terms of the number of deals they make and the total funding they provide. Familiar names in this sector, like Lowercarbon Capital, Temasek, TPG Rise Climate Fund, and Breakthrough Energy Ventures, have been particularly active.
In the U.S. alone, a new database tracking the country’s decarbonization journey, Clean Investment Monitor, reported that a total of $213 billion was invested in clean technologies and infrastructure from July 2022 to June 2023.

It seems unlikely that these investors will reduce their involvement in the following year. This is because urgent climate change forecasts strongly drive their investments, and these forecasts are becoming increasingly alarming. While this isn’t a positive thing, it does serve as a strong motivator for continued investment in climate-related efforts.
The post Global Sustainability and Climate Investments Hold Steady in 2023 appeared first on Carbon Credits.
Carbon Footprint
The Strategic Case for Nature-Based Carbon Investments
Nature-based carbon investments deserve consideration when they address a specific business dependency and produce outcomes you can measure. Imagine Moonbucks, a global coffee roaster planning next season’s espresso blend. It is considering natural Grade 4 coffee from Jimma, in southwestern Oromia, Ethiopia. Its sourcing decisions affect the roasting schedule and the cash tied up in coffee purchases. Moonbucks needs to understand which measures could protect that supply, what they would cost and how it would judge the results.
1. Define the sourcing problem before choosing a project
Moonbucks needs a dependable component for its espresso blend. Its procurement team wants continuity of volume and an agreed cup profile. Replacing a shipment at short notice could require new sample approval and changes to the blend, and given the schedules for cultivation, processing, and freight delivery, is practically impossible. Moonbucks needs to get this right, and its initial concern is inconsistent deliveries. It commissions an assessment of the supplying farms and post-harvest chain. The questions cover land condition, harvest availability and whether drying or storage problems are affecting saleable lots.
This distinction changes the investment brief. A tree-planting proposal cannot be assumed to fix drying problems. Better storage cannot restore eroded land. The team must establish which problem exists before selecting the response.
CCC’s guide to finding nature-based solutions in your supply chain explains where to look. Here, the next task is to turn a broad concern into a testable proposal.
2. Develop nature-based carbon investments around the actual supply chain
The assessment would trace Moonbucks’ purchases back through the exporter and supplying producer groups. Which farms supply the contracted lots? Who controls land-management decisions? How long does the buyer expect to maintain the purchasing relationship?
Furthermore, Jimma natural Grade 4 cannot be treated as interchangeable with every Ethiopian coffee. Moonbucks would need to test any substitute against its own blend and quality requirements.
Suppose Moonbucks’ assessment identifies an opportunity to maintain shade trees and restore vegetation along exposed streambanks. The IPCC describes agroforestry as a way to store carbon in vegetation and soil, with potential benefits for erosion control and water quality.1 Moonbucks would need local advice on species, growing conditions and maintenance before deciding how these measures fit its sourcing plan.
The proposal now has a defined sourcing connection and a candidate intervention. The next steps are to test its effect on production, assess carbon eligibility and build the financial case.
3. Compare the proposal with other ways to protect supply
WBCSD’s Nature-based Solutions Blueprint recommends comparing nature-based options with other responses across their benefits and costs.2 For Moonbucks, that means evaluating the landscape proposal alongside drying improvements, storage controls and alternative sourcing arrangements.
The product’s natural-process designation matters. Moonbucks should examine the drying and dry-milling chain alongside land conditions. Its team would check storage practices, contamination risks and incoming-lot quality to see whether problems arise before or after the coffee leaves the farms.
The revised proposal might combine land stewardship with separate post-harvest controls. Each component needs its own purpose and budget. A sustainability label should not obscure which activity is expected to solve which problem.
The project develops as the evidence improves. Its scope should follow the diagnosis rather than preserve the first idea unchanged.
4. Establish what the carbon outcome could count toward
Moonbucks’ sustainability team now tests the proposed carbon case separately from the sourcing case. Is the objective a measurable change in Moonbucks’ value-chain emissions, verified credits for separate voluntary use, or distinct outcomes under carefully defined arrangements?
Scope 3 covers value-chain emissions. A purchasing relationship alone does not prove that a farm intervention can be included in Moonbucks’ inventory. The team needs an applicable accounting method, defensible boundaries and evidence supporting attribution.
SBTi’s FLAG Guidance (forest, land and agriculture), version 1.2, says purchased credits used as offsets cannot meet near-term FLAG or energy and industry targets. Eligible land-based removals are subject to accounting requirements.3 Moonbucks needs to test its proposal against those rules before including an outcome in its targets.
For Moonbucks’ Jimma proposal, maintaining existing trees and establishing new vegetation could involve different carbon questions. Specialists must examine the baseline and additionality, meaning what changes because the project proceeds. They must also assess measurement and the risk that stored carbon is lost. CCC’s MRV and additionality article introduces those tests.
Until that work is complete, Moonbucks should not budget an assumed Scope 3 reduction or credit-sale receipt. Direct emissions reductions remain the priority.
5. Build a financial case that survives weaker assumptions
Moonbucks’ finance team would now build a multi-year budget. UNEP’s State of Finance for Nature 2023 compares current finance with the investment needed to meet climate, biodiversity and land-restoration goals.4 The company would cost its proposed activities, farmer participation and ongoing monitoring. Verification, where required, is a separate expense. Maintenance and responsibility for replacing failed plantings must remain visible after the initial establishment budget ends.
Operational benefits need equally careful treatment. If fewer rejected lots reduce emergency purchasing, count that saving once. Do not add “supply resilience” as another financial benefit when it represents the same avoided cost.
Moonbucks should compare a base case with slower benefits, higher implementation costs and no carbon revenue. It should also distinguish production outcomes from quality and shipment outcomes. A single good harvest would not prove that the landscape intervention caused better delivery performance.
A project can remain worth funding even when its carbon case needs more work. That decision must rest on the operational evidence and the company’s objectives, without unsupported environmental claims.
6. Fund a pilot with a clear expansion decision
Moonbucks’ first approval would fund a bounded pilot, rather than commit the entire sourcing program. Before spending, Moonbucks would agree on participating farms, responsibilities and the evidence needed at review.
Its scorecard could track farmer participation, implementation costs and plant survival, alongside accepted coffee volumes and lot-quality results. Carbon measurements would follow the selected method. Farm-level traceability must connect the intervention to the actual sourcing relationship.
Suppose Moonbucks’ review later finds that storage changes explain most quality improvements, while the land measures need longer observation. Those findings would shape the next decision: expand the proven component, adjust the landscape work or pause further spending. They would not justify crediting all improvements to tree planting.
This gives nature-based carbon investments a practical place in a multi-year strategy. Funding increases as the evidence supports it, and the project can change direction before a larger commitment.
Discuss a sourcing opportunity with CCC
Carbon Credit Capital’s nature-based supply-chain investment service uses its Dual-Value Model to examine supply-chain economics alongside potential sustainability outcomes.
Schedule a consultation to discuss your sourcing exposure and the questions to resolve before allocating capital.
Sources
- Intergovernmental Panel on Climate Change (IPCC), Climate Change 2022: Mitigation of Climate Change, Chapter 7, Agriculture, Forestry and Other Land Uses, section 7.4.3.3 (Agroforestry).
- World Business Council for Sustainable Development (WBCSD), Nature-based Solutions Blueprint, 5 June 2024.
- Science Based Targets initiative (SBTi), Forest, Land and Agriculture Science-Based Target-Setting Guidance, version 1.2, March 2026, section 3.1.4, pp. 37–38.
- United Nations Environment Programme (UNEP), State of Finance for Nature 2023, 2023.
Carbon Footprint
How to buy plastic credits, and what to check before you do
A plastic credit funds the collection of plastic waste in places where no formal system exists to collect it. Each credit represents a measured, independently audited quantity of plastic taken out of the environment or returned to use, tracked on a public registry.
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Carbon Footprint
EU carbon credit claims after 27 September 2026
EU carbon credit claims changed on 27 September 2026, the day the Directive (EU) 2024/825 began to apply across the European Union. The change is narrow. It changes how a company can talk about the credits it buys. A product can no longer be called neutral on the strength of compensation alone; however, every specific, evidenced statement about what a company measured, reduced, and funded stays fully available.
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