Uncover the Top 10 Climate Tech Trends & Innovations [2026]

Executive Summary: What are the Top 10 Climate Tech Trends in 2026?

Climate tech trends reflect an urgent global push toward net-zero goals. This shift is driven by investment, policy changes, and rapid technology developments. Future Market Insights projects the climate tech market will grow from USD 37.5 billion in 2025 to USD 220.3 billion by 2035, with a 24.6% compound annual growth rate (CAGR). The top 10 climate tech trends shaping this transformation are:

1. Emissions Tracking and Minimization: Companies are adopting precise monitoring tools to comply with regulations and meet climate pledges. Analysts expect the carbon management software market to grow up to USD 71.17 billion by 2031 and carbon markets to hit USD 1.6 trillion by 2028 as industries trade verified emission reductions.
2. Artificial Intelligence (AI) Integration: Companies are using AI as a core tool in climate tech trends to optimize renewable energy grids, forecast climate risks, and reduce industrial emissions. Analysts expect the AI in the environmental sustainability market to grow at a 14.58% CAGR and project it to reach around USD 49.27 billion by 2030, as industries demand smarter, data-driven climate solutions.
3. Energy Storage and Optimization: Energy providers are scaling storage capacity, which is projected to reach 1028 GWh by 2030. Innovators are commercializing solid-state batteries, thermal storage, and smart systems to stabilize the renewable energy supply.
4. Expansion of Renewables: Developers increased renewables’ share of global electricity generation and are planning for a 65% increase by 2030. In 2025, the International Energy Agency reports that total clean energy investment, spanning renewables, nuclear, storage, grids, and efficiency, is projected at USD 2.2 trillion.
5. Sustainable Mobility: Automakers and transport operators are decarbonizing fleets to reduce the sector’s share of global CO2 emissions. Electric vehicle (EV) sales are projected to surpass 50 million annually by 2030, alongside advances in hydrogen and shared mobility.
6. CCUS Innovations: Operators are improving CCUS capacity to over 50 million tonnes of CO2 per year by early 2025 and plan to scale it to around 430 Mt annually by 2030. Companies are deploying these solutions across the cement, steel, and chemical sectors, which are some of the hardest industries to decarbonize.
7. Circular Economy: Industries are redesigning products and processes to minimize waste and keep materials in circulation. Circular practices reduce global emissions by up to 39%, and experts forecast the market to reach USD 1.3 trillion in 2025.
8. Climate Modeling: Researchers are developing kilometer-scale climate models using AI and advanced computing to improve extreme weather predictions and adaptation planning. Swiss Re projects insured natural disaster losses could reach USD 145 billion in 2025. This highlights the need for better climate risk management tools.
9. Low-Carbon Manufacturing: Manufacturers are shifting to green hydrogen, electrification, and sustainable materials to reduce the industrial sector’s 30% share of global emissions. Market analysts predict that the global green steel market is expected to reach around USD 766.8 billion by 2030.
10. Climate-Smart Agriculture (CSA): Farmers and agritech companies are adopting sustainable practices to reduce agriculture’s 20% share of global emissions. The climate-smart agriculture market is expected to reach USD 5.9 billion this year and grow at a CAGR of 11.7% through 2032.

Read on to explore each trend in depth – uncover key drivers, current market stats, cutting-edge innovations, and 20 leading innovators shaping the future.

Frequently Asked Questions

1. How can technology tackle climate change?

Emerging technologies simplify emissions tracking and improve renewable energy integration. Solutions like carbon capture, circular economy tools, digital twins, green transport, and climate-smart farming reduce emissions and improve climate risk management.

2. How big is the climate tech market?

The global climate tech market is projected to grow from USD 31.5 billion in 2025 to USD 149.27 billion by 2032, with a CAGR of 24-25%.

Methodology: How We Created the Climate Tech Trend Report

For our trend reports, we leverage our proprietary StartUs Insights Discovery Platform, covering 7M+ global startups, 20K technologies & trends plus 150M+ patents, news articles, and market reports.

Creating a report involves approximately 40 hours of analysis. We evaluate our own startup data and complement these insights with external research, including industry reports, news articles, and market analyses. This process enables us to identify the most impactful and innovative trends in the climate tech industry.

For each trend, we select two exemplary startups that meet the following criteria:

• Relevance: Their product, technology, or solution aligns with the trend.
• Founding Year: Established between 2020 and 2025.
• Company Size: A maximum of 200 employees.
• Location: Specific geographic considerations.

This approach ensures our reports provide reliable, actionable insights into the Climate Tech innovation ecosystem while highlighting startups driving technological advancements in the industry.

Innovation Map outlines the Top 10 Climate Tech Trends & 20 Promising Startups

For this in-depth research on the Top 10 Trends & Startups, we analyzed a sample of 20 global startups & scaleups. The Climate Tech Innovation Map, created from this data-driven research, helps you improve strategic decision-making by giving you a comprehensive overview of the climate tech industry trends & startups that impact your company.

Tree Map reveals the Impact of the Top 10 Climate Tech Trends

The climate tech trends shaping 2025-2026 emphasize decarbonization, resilience, and economic opportunity. Emissions tracking and AI-driven tools offer precise monitoring and smarter decision-making across sectors. Energy storage and renewable expansion are stabilizing power supplies and reducing carbon footprints.

Further, climate modeling provides critical foresight for infrastructure and policy planning. Circular economy and low-carbon manufacturing redefine how materials and industrial processes operate, while climate-smart agriculture offers sustainable food systems. As these climate technologies advance, industries are innovating how they adapt and thrive in a net-zero future.

Global Startup Heat Map covers 20 Climate Tech Startups & Scaleups

The Global Startup Heat Map showcases the distribution of 20 exemplary startups and scaleups analyzed using the StartUs Insights Discovery Platform. It highlights high startup activity in the USA and the UK, followed by Germany. From these, 20 promising startups are featured below, selected based on factors like founding year, location, and funding.

Want to Explore Climate Tech Innovations & Trends?

Top 10 Emerging Climate Tech Trends in 2026

1. Emissions Tracking & Minimization: Market to Reach >USD 100 B by 2032

Regulatory mandates like the EU’s Corporate Sustainability Reporting Directive (CSRD) and California’s SB 253 are compelling companies to produce highly granular emissions data. This includes Scope 3 disclosures that are impacting global businesses, as reported by PwC.

Meanwhile, over 75% of organizations cite customer demand for transparency as a major driver. This data indicates that emissions tracking is not merely a compliance exercise but a competitive advantage. It is important as supply chain partners and end consumers tie sustainability to brand loyalty.

Investors are also pushing for environmental, social, and governance (ESG) clarity, with 68% of businesses reporting investor pressure to disclose emissions data. This entails emissions analytics into financial risk assessments and sustainable capital strategies.

AI-enabled power-capping hardware decreases energy consumption by up to 15%. This practice directly lowers both operational expenses and emissions footprints.

For example, businesses utilizing NextBillion.ai have reported up to 30% reductions in distance traveled by cutting down on wasteful mileage and detours. This improvement immediately translates into decreased fuel consumption and lower CO2 emissions.

Moreover, heavy industries employ continuous emissions monitoring systems (CEMS). For instance, ArcelorMittal measures emissions ranging from 1.5 to 2.2 tons of CO2 per ton of steel and drives targeted process improvements.

Internet of Things (IoT) sensors provide real-time tracking and enable companies to deploy these devices to monitor fuel use and emissions continuously. Further, blockchain increases the integrity of carbon records and saves costs, while cloud computing and advanced analytics also play pivotal roles, as these innovations model emissions hotspots and forecast regulatory compliance scenarios.

As carbon markets evolve, emissions data are becoming crucial for verifying credits and preventing greenwashing. Companies like Shell and Microsoft are linking emissions tracking to carbon registries to enable credit trading and monetize reductions.

The blockchain carbon registry market is projected to reach USD 4.52 billion by 2033 at a CAGR of 28.4%. Looking ahead, the broader emissions tracking market is indicating major expansion, with the carbon accounting software market expected to reach USD 100.8 billion by 2032 at a CAGR of 23.9%.

Ruminati provides an Emissions Calculator & Reduction Planner

Australian startup Ruminati develops digital tools that track and reduce agricultural emissions for businesses. It offers PRIME and VISION, two platforms that gather and examine farm-level data to quantify emissions and sequestration. These platforms reveal the intensity and sources of scope 1, 2, and 3 emissions.

The platforms also enable businesses to simulate future scenarios and assess the impact of interventions like changes in farming practices, adjustments in input usage, and shifts in land management strategies.

Additionally, the startup incorporates collaboration features that allow accountants or agronomists to complete and verify reports directly. The platforms offer dashboards for businesses to manage data access and fulfill supply chain reporting requirements.

The startup also aggregates emissions data from the entire value chain to produce comprehensive insights, trend evaluations, and intensity measurements. This way, Ruminati equips agricultural producers with precise information to meet regulatory standards, increase operational efficiency, and pursue climate objectives.

Jadeed offers a Hydrogen-IoT Hybrid System for Emission Reduction & Tracking

Australian startup Jadeed produces hydrogen fuel cells that generate hydrogen gas as an alternative energy source for vehicles and machinery.

The company’s fuel cells convert hydrogen into usable energy to power engines and emit only water vapor as byproducts. Moreover, the startup integrates an IoT application into its devices to deliver real-time control and performance analytics. The app also tracks metrics like distance traveled, fuel and maintenance savings, and emissions reductions. This improves operational efficiency and user oversight.

Meanwhile, the startup enables remote management of hydrogen systems and provides data-driven insights for optimizing performance and emissions. This allows businesses to reduce fuel consumption and expenses as well as comply with environmental regulations.

2. AI Integration: Enabling Up to 15% Energy Savings

AI is rapidly becoming crucial as businesses, regulators, and investors demand precise, data-driven solutions to navigate climate risks and optimize operations.

Simultaneously, cost savings and sustainability goals motivate businesses to adopt AI for improving energy efficiency, predicting equipment failures, and analyzing climate risks to support net-zero strategies.

The benefits of AI extend far beyond compliance. For instance, AI systems deliver up to 15% energy savings in commercial buildings, while predictive maintenance slashes downtime and costs for renewable assets. Another instance is that of Google’s DeepMind, which predicts wind output 36 hours in advance and increases wind farm value.

Likewise, IBM’s Environmental Intelligence integrates climate risk analytics and geospatial data for businesses to plan resilient operations. Meanwhile, Climate TRACE uses AI and ML to analyze over 90 trillion bytes of data from 300+ satellites, 11 000 sensors, and global emissions sources.

Machine learning and neural networks, adopted by climate tech organizations, also excel in pattern recognition and predictive modeling in massive environmental datasets. For example, Jupiter Intelligence‘s AI-powered climate models provide highly localized climate risk analytics for financial institutions and corporations.

Moreover, IoT sensors stream real-time data on energy use, emissions, and conditions across dispersed assets. AI systems analyze this data to detect patterns, predict failures, and optimize sustainability strategies.

Cloud computing handles the scale of climate data needed for AI models and enables real-time analytics, simulations, and complex predictive modeling that drive actionable climate strategies.

Additionally, advanced analytics, digital twins, and edge computing enable businesses to create virtual models and run predictive simulations. These AI-powered solutions allow them to reduce emissions, increase efficiency, and implement sustainable practices.

For example, Honeywell’s Protonium platform applies digital twins and AI-driven edge analytics to enhance green hydrogen production and lower costs. This reduces greenhouse gas emissions in industrial operations.

Eoliann provides an AI-powered Climate Risk Assessment Platform

Italian startup Eoliann develops a climate risk assessment platform that integrates AI to quantify and analyze the impact of natural hazards on assets.

It processes satellite imagery and geospatial data to deliver precise evaluations of floods, droughts, wildfires, landslides, heatwaves, earthquakes, and extreme rainfall. The platform also updates its models monthly to reflect evolving climate conditions.

Moreover, the platform achieves asset-level granularity down to 30 meters by 30 meters as well as produces detailed assessments for individual properties and large portfolios.

It reports exact metrics like average annual loss and value at risk. This allows businesses to translate climate threats into financial implications and support proactive risk management.

Further, the startup offers both an application program interface (API) to make their AI-driven insights accessible and customizable for sectors like infrastructure, energy, finance, and insurance. This way, Eoliann enables enterprises to strengthen resilience, optimize planning, and reduce the economic impact of climate change.

Olive Gaea builds an AI-driven Carbon Management Platform

UAE-based startup Olive Gaea creates an AI-driven carbon management platform that improves end-to-end greenhouse gas accounting and decarbonization planning.

It integrates with enterprise data systems to capture operational and financial data. The platform also converts complex emissions information into clear visualizations and detailed metrics across scope 1, 2, and 3 emissions.

Moreover, the platform employs AI to generate emissions projections based on business growth plans and runs multiple decarbonization scenarios.

Additionally, it includes tools that engage suppliers and employees in reducing emissions, handles carbon offset purchases, and produces audit-ready reports. Further, the platform incorporates collaborative features to assign tasks, track progress, and maintain organizational transparency.

3. Energy Storage and Optimization: A USD 12.65 B Market by 2034

Regulatory mandates, energy market volatility, and rising climate risk awareness are driving energy storage and optimization to the forefront of climate tech. For instance, the Indian government requires 4% of stored energy to come from renewables by 2029-30 as renewable capacity soars.

Meanwhile, volatile electricity prices encourage companies to adopt storage for load shifting. This enables commercial buildings to reduce costs and manage financial risks tied to renewable intermittency.

More than just a cost-saver, energy storage delivers resilience and competitive advantage central to climate tech’s mission. To illustrate, California’s Edwards & Sanborn facility integrates 3287 MWh of batteries with 875 MWdc of solar. This capacity shows how storage stabilizes the grid while generating revenue from ancillary services.

Moreover, data centers with AI-related usage are projected to grow between 200 TWh and 400 TWh by 2030, representing 35-50% of total data center energy use. This drives demand for advanced energy storage and optimization solutions that allow data centers to manage peak loads, reduce emissions, and improve energy efficiency.

Lithium-ion batteries deliver fast power essential for integrating renewables and balancing the grid. They enable businesses to maintain stable operations while reducing carbon emissions and avoiding costly fossil fuel backups.

Additionally, thermal energy storage (TES) systems store excess energy as heat or cold and reduce emissions for buildings and industrial processes. For example, Malta uses molten salts to store thermal energy for grid applications. It offers affordable long-duration storage that supports renewables.

Likewise, compressed air energy storage (CAES) utilizes underground caverns to store energy as compressed air for multi-hour or even seasonal storage.

Long-duration energy storage (LDES) technologies, such as Form Energy’s iron-air batteries, are bridging multi-day gaps in renewable supply. They improve grid reliability and decarbonization.

The global energy storage market size is estimated at USD 1.74 billion in 2025 and is predicted to surpass around USD 12.65 billion by 2034, expanding at a CAGR of 14.20%. This projection underlines energy storage and optimization as a vital trend of climate tech’s path to a net-zero economy.

Ampowr deploys Battery Energy Storage Systems (BESS)

Dutch startup Ampowr develops battery energy storage systems and cyber-secure energy management software. Together, they optimize energy use and support grid stability for businesses across industries.

The startup’s platform, Ampowr Cosmos, connects battery systems with renewable generation sources, grid infrastructure, and energy loads. It also integrates assets such as EV chargers and backup generators to ensure smooth energy coordination.

Moreover, the startup programs its software to process data points and enable real-time monitoring, predictive maintenance, and control strategies. This involves peak shaving, curtailment, net-zero management, and energy trading, which improve operational efficiency and profitability.

Tyba offers an AI-powered Energy Storage Optimization Platform

US-based startup Tyba creates an AI-powered platform that optimizes energy storage operations and improves profitability. The platform leverages neural network models to analyze real-time market dynamics and predict electricity prices. This enables businesses to craft precise bidding strategies and actively manage battery dispatch.

Moreover, the platform automates tasks such as state-of-charge management and risk parameter adjustments. It also provides businesses with direct control through configurable settings and real-time intervention tools.

Additionally, the platform offers project simulation capabilities that let users model thousands of custom battery configurations and evaluate revenue potential. This feature provides data insights to support investment decisions.

Further, Tyba connects energy storage systems with market operators and traders for projects to quickly move from development to active market participation.

4. Expansion of Renewables: Market to Reach USD 7 T by 2034

Energy security, corporate climate pledges, and electrification are driving rapid growth in renewable energy development and deployment. Additionally, carbon market incentives are accelerating the expansion of renewables as a defining climate tech trend.

Moreover, renewables offer major cost savings and reduce risks due to volatile fossil fuel prices, regulatory shifts like carbon taxes, and supply chain disruptions. Commercial solar installations also earn major returns annually with short paybacks. Likewise, power purchase agreements (PPAs) enable firms to lock in long-term prices and reduce exposure to fossil fuel volatility.

Additionally, green hydrogen production connects renewable electricity to hard-to-abate sectors like steel and shipping for replacing fossil fuels. To illustrate, Orsted and H2 Green Steel secured a green hydrogen supply agreement.

Floating solar further expands solar capacity without consuming scarce land by using cooling water surfaces to improve panel efficiency. Singapore, for example, grew its floating solar fleet by 60 MW. This enables urban regions to meet climate tech targets where land is limited.

Advanced inverter technologies stabilize voltage and frequency to enable grids to handle variable renewables. For example, SMA Solar’s grid-forming inverters support the integration of clean energy into pre-existing grids.

Likewise, agrivoltaics merges solar power with agriculture and optimizes land use and community benefits. For instance, Enel Green Power‘s agrivoltaic projects in Italy grow crops under elevated solar panels to reduce land-use conflicts. It is a major advantage for sustainable rural development.

The global renewable energy market is expected to reach USD 7.28 trillion by 2034 at a CAGR of 17.13%. These massive investments are enabling cleaner power systems, smarter grids, and deeper industrial decarbonization.

DRIFT Energy employs Sailing Ships to Collect Energy from Turbines

UK-based startup DRIFT Energy builds a renewable energy system that enables sailing vessels to become mobile green hydrogen producers and distributors.

The system’s underwater turbines capture kinetic energy from ocean currents as the vessels navigate global trade winds. It then channels this harvested power into megawatt-class electrolyzers to generate and store green hydrogen on board.

Additionally, the startup develops an AI-powered routing system, Goldilocks Algorithm, that steers vessels toward optimal wind and weather conditions. It ensures the yachts return to port precisely when their hydrogen tanks reach capacity.

The startup also operates a coordinated flotilla of vessels, Hydroloop, that stores hydrogen for offloading at ports or direct bunkering of other ships. This enables efficient fuel delivery.

Octoteq builds Semi-Submerged Offshore Platforms

Czech Republic-based startup Octoteq offers semi-submerged offshore platforms that integrate multiple renewable energy sources. The floating structures leverage wave energy through linear generators beneath the platform. It captures solar energy with photovoltaic (PV) systems on deck and generates wind power using vertical-axis turbines.

Moreover, the startup installs energy storage systems using kinetic energy recovery flywheels for immediate stabilization. It also produces green hydrogen for long-term storage to ensure a steady energy supply despite natural fluctuations.

Octoteq utilizes modular designs and organic shapes inspired by marine life to build its platforms. This approach reduces environmental impact and meets diverse local demands. It also integrates technologies such as carbon capture, aquaculture, and desalination into these structures.

5. Sustainable Mobility: A USD 4.72 T Market by 2034

Urban air quality mandates, scope 3 emissions pressure, the financial edge of clean vehicles, and digital optimization are driving sustainable mobility. Moreover, cities worldwide treat air pollution as a public health crisis and a climate imperative. To illustrate, India’s National Clean Air Program prioritizes sustainable transport in 130 cities to reduce particulate emissions.

Meanwhile, corporate climate strategies increasingly target scope 3 emissions. Firms like DHL are improving logistics fleets to reach net-zero by 2050. This way, it is linking transportation directly to climate tech’s broader decarbonization goals.

Notably, the lifetime costs of electric and hydrogen vehicles undercut fossil-fueled options. Additionally, medium and heavy-duty electric trucks deliver lower operating costs. This prompts rapid fleet transitions.

Further, digital twins and real-time modeling allow cities and corporations to simulate transport networks and identify emissions reduction strategies.

The micromobility services market is forecasted to hit USD 335.22 billion by 2032. Such services reduce urban congestion and emissions. Corporate fleets also save over USD 100 000 annually per 20 vehicles switched to electric.

Among enabling technologies, alternative fuel systems like hydrogen fuel cells and biofuels are scaling into commercial transport. As an example, Volvo plans to introduce hydrogen-powered trucks by the decade’s end.

In addition, smart transportation infrastructure uses real-time traffic sensors, adaptive signals, and connected corridors.

Lightweight materials, like carbon fiber composites, reduce vehicle weight and improve electric range. Meanwhile, wireless charging systems allow EVs to charge in motion. This technology minimizes downtime and enables smaller batteries. Thermal management systems are also vital for battery efficiency and reducing energy loss.

The sustainable mobility market is projected to grow from USD 0.74 trillion in 2025 to approximately USD 4.72 trillion by 2034, expanding at a CAGR of 22.96% from 2025 to 2034.

Shift EV develops a Lithium-Ion Battery & Electric Drivetrain System

Egyptian startup Shift EV provides an electrification system, Electrofitting. It retrofits existing internal combustion engine vehicles into fully electric ones.

The system replaces traditional drivetrains with electrification kits that include batteries, electric motors, control units, and integrated software. It also customizes each retrofit to match specific fleet requirements and operational goals.

The startup offers lithium-ion battery systems with high energy density, modular scalability, and safety features. These systems deliver reliable performance for commercial vehicles like delivery vans and pickups.

Additionally, it builds ShiftWare, a fleet management platform that connects electrified vehicles to a cloud-based system. It enables real-time monitoring, predictive maintenance, route optimization, and detailed analytics to improve fleet efficiency and reduce costs.

Odonata advances Hydrogen-powered Air Mobility

German startup Odonata builds Pantala, a hydrogen-powered drone that advances sustainable mobility and aerial operations. The startup equips the drone with a hydrogen powertrain and an efficient aerodynamic design to extend flight endurance and enable long-duration missions.

Moreover, the startup designs Pantala with a modular structure that allows it to perform diverse tasks such as surveillance for border control and infrastructure monitoring. It also enables cargo delivery for offshore wind farm maintenance and early wildfire detection through aerial monitoring.

Additionally, Odonata focuses on integrating hydrogen technology to minimize environmental impact while ensuring the drone remains versatile and reliable across multiple applications.

6. CCUS Innovations: Market to Reach USD 50 B by 2034

Stricter emissions mandates, high costs of decarbonizing heavy industries, and growing carbon markets are placing CCUS at the center of climate tech solutions. Around the world, over 80 large-scale CCUS facilities are capturing nearly 40 million metric tons of CO2 annually.

CCUS is turning carbon management from voluntary action into a business imperative. For instance, the US Inflation Reduction Act offers tax credits of USD 50 to USD 85 per ton of captured CO2. Likewise, the UK government is pledging over EUR 21.7 billion to improve CCUS deployment.

In parallel, the economic challenge of decarbonizing hard-to-abate sectors like steel, cement, and chemicals fuels the demand for CCUS. These industries produce major global emissions. For many of these sectors, there are few alternatives besides capturing emissions directly at the source.

Carbon pricing and markets are expanding rapidly, with 95 million credits retired in voluntary markets in the first half of 2025 alone. A significant rise year-on-year encourages businesses to adopt CCUS for managing climate risks.

Smart IoT sensors provide real-time monitoring of CO2 flows, temperatures, and pressures across capture systems. Likewise, blockchain improves data integrity for carbon credit transactions, reduces fraud, and enhances investor confidence.

Robots and drones also perform inspections at pipelines and storage sites to improve safety and operational reliability. Hybrid renewable integrations, like pairing direct air capture with geothermal or solar, reduce the energy footprint of CCUS.

The global CCUS market is forecasted to reach around USD 50.70 billion by 2034, and it is expanding at a CAGR of 21.37%. This rapid growth is anchoring CCUS and creating new economic opportunities for carbon-smart industries.

Bridgr builds a Carbon-Capturing Bot

Indian startup Bridgr Carbon provides carbon capture and utilization technologies that reduce emissions and build sustainable value chains. Its solution, the carbon-capturing bot (CCB), combines AI and hardware to capture carbon dioxide directly at emission sources. It also measures and verifies reductions in real time to streamline carbon credit verification.

Bridgr’s system channels the captured gas into industrial uses – including enhanced oil recovery (EOR), chemical manufacturing, and synthetic fuels that convert emissions into valuable products.

Moreover, the startup manufactures carbon aerogels, lightweight materials with high surface area, thermal insulation, and electrical conductivity. These aerogels serve diverse purposes in aerospace, energy storage, catalysis, sensors, and environmental cleanups.

ARK Capture Solutions offers a Hybrid Carbon Capture System

Belgian startup ARK Capture Solutions provides hybrid carbon capture technology to tackle industrial emissions. The startup’s full-electric systems extract CO2 directly from flue gases to operate across both low and high CO2 inlet concentrations. These systems release clean, climate-friendly flue gas into the atmosphere.

Moreover, the startup builds its technology to consume record-low energy, maintain a modular and compact structure, and operate fully autonomously. It avoids using chemicals or hazardous materials and reduces operational risks.

Additionally, ARK Capture Solutions integrates renewable energy into its systems and produces high-purity CO2 for further utilization or storage. It also ensures that its technology remains compatible with diverse plant setups and transport modes.

7. Circular Economy: Market to Reach USD 798 B by 2029

The circular economy shift is driven by regulatory mandates, resource security concerns, climate mitigation pressures, and economic opportunities. Regulations like the EU’s Ecodesign for Sustainable Products Regulation (ESPR) are compelling businesses to design products for durability and recyclability.

Meanwhile, growing resource scarcity and geopolitical risks push companies to reduce dependence on virgin materials. At the same time, circular strategies offer direct climate benefits. One such example is that circular economy approaches reduce global emissions by 39%. This data indicates that circular economy approaches are a core lever for achieving net-zero goals.

The global circular economy market is projected to expand from USD 517.79 billion in 2025 to USD 798.3 billion in 2029 at a CAGR of 11.4%. This indicates rising demand for resource-efficient processes, recycled materials, and business models that reduce waste and lower carbon emissions.

Moreover, AI and ML optimize material flows, predict maintenance needs, and enable waste-to-resource innovations. For example, Winnow‘s AI-powered system, Winnow Vision, allows commercial kitchens to reduce food waste. This system is saving millions in costs and reducing emissions.

IoT sensors and connected devices also provide real-time monitoring of product lifecycles and enable predictive maintenance and traceability for recycling. For instance, Philips uses IoT sensors in medical equipment to track device health for timely repairs, longer lifespans, and efficient recovery of materials for reuse.

Digital twin technologies allow virtual simulations of products and processes. These technologies enable companies to test circular strategies before deploying them physically.

Also, advances in robotics and automated sorting improve the efficiency and purity of recycled material streams. For instance, TOMRA’s AI-powered sorting systems are achieving maximum accuracy in separating plastics and metals. It enables higher-quality recycled inputs to reduce the carbon footprint of new manufacturing processes.

Terramatter manufactures Single Cell Proteins (SCP) for Circular Carbon

Indian startup Terramatter provides carbon capture and conversion technology to convert industrial CO2 emissions into valuable bio-based products.

The startup runs a multi-stage biological fermentation process where specially developed microorganisms feed on captured CO2 at the emission source. They first convert it into intermediate compounds and then produce sustainable ingredients through controlled growth and purification steps.

Moreover, the startup designs its technology to stay carbon-fed and operate independently of climate conditions. It integrates with existing industrial facilities like ethanol and alcohol plants. The startup turns waste streams into new resources and reduces supply chain risks.

Terramatter also produces a range of products, including TerraMyco and TerraFeed. TerraMyco is a carbon-negative protein with essential nutrients, and TerraFeed is an eco-friendly animal feed alternative that reduces reliance on soy meal and fish meal.

ParaStruct creates Circular Materials from Mineral and Biogenic Waste

Austrian startup ParaStruct manufactures sustainable building materials from timber residues. The company processes sawdust using proprietary methods into a high-performance screed and subfloor material, BioScreed.

BioScreed hardens rapidly after installation and ensures quick construction timelines while providing high elasticity and fracture resistance. It also maintains form stability with minimal shrinkage while offering durability and comfort as a smooth floor covering.

Additionally, BioScreed allows installed floors to be removed and reused without damage. This reduces waste during building renovations or demolitions.

8. Climate Modeling: A USD 2 B Market by 2034

Unlike commercial climate solutions focused on cost savings, climate modeling shapes how governments and businesses plan for a net-zero future. For example, governments invest heavily in climate modeling to inform nationally determined contributions under the Paris Agreement.

Moreover, international collaboration strengthens this trend, with the European Centre for Medium-Range Weather Forecasts’ (ECMWF) Destination Earth initiative creating digital twins that simulate climate scenarios.

Consequently, the global AI-based climate modeling market is projected to rise to USD 2 billion by 2034 at a CAGR of 23.1% between 2025 and 2034.

Meanwhile, regulatory mandates are pushing businesses into climate modeling. Frameworks like the Task Force on Climate-related Financial Disclosures (TCFD) and International Sustainability Standards Board (ISSB) standards demand scenario analyses and risk assessments.

Additionally, central banks require climate stress tests that embed modeling into financial risk management and link it to business and environmental goals of resilience and adaptation.

Further, governments seek higher-resolution models for real-time warnings. For instance, India’s Ministry of Earth Sciences operates a 1.15 petaflop HPC system that powers forecasts to protect communities.

Likewise, NASA’s Prithvi Weather-Climate foundation model provides regional climate projections that are vital for urban planning and disaster management.

At the same time, businesses are turning to companies like Jupiter Intelligence and Climate X to translate complex climate data into financial risk insights. This proves that climate modeling is essential for corporate resilience.

Satellite networks, like ESA’s Climate Change Initiative, supply critical data on climate variables essential for predicting extreme events and long-term risks. Digital twins and cloud computing are also making climate modeling accessible to more businesses.

For example, the National Center for Atmospheric Research’s (NCAR) partnership with AWS shows how cloud-based climate simulations enable climate modeling without the need for heavy on-premise infrastructure.

CLIMADA Technologies builds Climate Risk Analytics Software

Swiss startup CLIMADA Technologies develops delta-climate, a proprietary SaaS platform for climate modeling. It quantifies the socioeconomic impacts of weather and climate on assets and infrastructure.

The startup builds delta-climate using the open-source CLIMADA framework by combining collaborative research into a cloud-based system. This system analyzes physical climate risks across hazards and delivers scenario-based assessments for asset and portfolio-level exposures.

Moreover, the startup integrates an AI-driven reporting engine in delta-climate to automate the production of regulatory-compliant climate risk reports aligned with CSRD and EU Taxonomy standards.

AgroRisk develops a Climate Risk Platform for Agriculture

German startup AgroRisk offers a climate risk platform that quantifies financial risks for agricultural operations facing changing weather patterns and extreme climate events.

It analyzes field-level and farm-level data to assess credit risks, set insurance premiums, and support regulatory reporting. The platform provides banks, insurance providers, and farmers with detailed insights into climate exposures.

Moreover, the platform’s analytics offers aggregate risk comparisons and financial insights across farm portfolios to evaluate individual risks and compare exposure levels among different agricultural enterprises.

AgroRisk designs the platform to align with emerging ESG reporting standards like the CSRD and Capital Requirements Regulation/Capital Requirements Directive (CRR/CRD). This allows institutions to maintain compliance and enhance customer engagement.

9. Low Carbon Manufacturing: A USD 6.57 Trillion Market by 2034

Regulatory pressure, like the EU’s Carbon Border Adjustment Mechanism (CBAM), forces companies to decarbonize operations. Otherwise, they risk paying higher carbon tariffs that make their products less competitive in international markets. This makes low-carbon manufacturing critical for staying profitable. Cost efficiency also becomes a driver as AI and digital tools enable manufacturers to lower industrial energy.

Consumer and investor expectations add further urgency. For example, strong demand for low-carbon products is encouraging manufacturers to adopt greener processes to retain market share. Meanwhile, ESG-focused investors assess manufacturers on measurable emissions reductions to influence investment decisions.

Moreover, decarbonizing hard-to-abate sectors like cement and steel, which together account for about 14% of global CO2 emissions, requires innovative technologies and significant policy support. This positions low-carbon manufacturing as crucial infrastructure for a net-zero economy.

To tackle these challenges, manufacturers deploy enabling technologies like green hydrogen integration, electrification of heat processes, and carbon capture systems. For example, H2 Green Steel’s plant in Sweden is set to produce 5 million tons of low-carbon steel annually using hydrogen as fuel by 2030. Electrification and heat pumps are also converting fossil-fuel-dependent manufacturing processes into clean, electric operations.

Digital twins and AI-driven optimization allow factories to simulate production lines, predict maintenance needs, and slash waste. This saves costs and reduces carbon footprints. For instance, Stegra integrates green hydrogen in steel production instead of coal-based blast furnaces to reduce CO2 emissions.

These technologies and market shifts are driving the global manufacturing decarbonization market to reach USD 194.66 billion by 2030.

Elyse Energy produces Low-Carbon Industrial Feedstocks

French startup Elyse Energy manufactures sustainable molecules that replace fossil-based raw materials in industrial processes.

The company’s production plants use water electrolysis to generate low-carbon hydrogen and capture CO2 from industrial operations. It then applies methanolation and the Fischer-Tropsch process to convert these inputs into e-methanol. This is a key chemical feedstock for manufacturing plastics, resins, and other industrial products.

Additionally, Elyse Energy enables manufacturers to lower their carbon footprint while maintaining compatibility with existing production infrastructure by supplying low-carbon hydrogen and e-methanol. This supports the transition to low-carbon manufacturing in sectors like chemicals, materials, and heavy industry.

HYCO1 converts Industrial CO2 into Low-Carbon Manufacturing Feedstocks

US-based startup HYCO1 converts industrial CO2 emissions into valuable chemical feedstocks. This enables manufacturers to lower their carbon footprint.

Its proprietary technology, HYCO1 CUBE, utilizes a catalyst and low-cost process to convert CO2 and methane into chemical-grade syngas in a single reactor pass.

The resulting syngas serves as a key input for producing hydrogen, methanol, and synthetic fuels. These fuels are essential feedstocks for the chemical, plastics, and materials industries.

10. Climate Smart Agriculture: Market to Reach USD 150 B by 2033

Rising temperatures, droughts, and floods are forcing agriculture to improve as they threaten crop yields. A Finnish research institute found that nearly 30% of the world’s food supply could face zero yields by the end of the twenty-first century without greenhouse gas regulations.

Moreover, water scarcity compounds this challenge as agriculture consumes 70% of global freshwater. This is driving rapid adoption of precision solutions. Governments are also stepping in with ambitious policies. For example, Australia’s USD 302.1 million Climate-Smart Agriculture Program and India’s National Mission on Sustainable Agriculture (NMSA) are targeting a major increase in sustainable farming practices by 2030.

As a result, the climate-smart agriculture market is projected to surge from USD 50 billion in 2025 to USD 150 billion by 2033, growing at a 12% CAGR.

Corporations like Jupiter Intelligence and Climate X allow agribusinesses to assess physical and transition risks. These companies align climate-smart practices with financial resilience.

Meanwhile, the USDA’s Climate-Smart Commodities program stretches across more than 50 US states. It offers payments for climate-smart practices like cover cropping and reduced tillage.

Further, IoT sensors track soil moisture, nutrient levels, and local weather to support decisions that reduce water use and emissions. Drones integrate AI analytics for early pest detection, yield estimation, and planning for climate resilience.

Biological crop inputs, like biostimulants and biopesticides, replace synthetic fertilizers and pesticides to increase soil health and reduce carbon footprints. Additionally, regenerative agriculture platforms integrate remote sensing and satellite imagery to verify practices, like cover cropping, and give farmers proof for carbon markets.

Low-cost soil carbon sensors use laser spectroscopy and electrochemical detection to bring affordable, on-farm soil carbon measurement. Such solutions enable farmers to participate in carbon markets and directly tie agriculture to climate tech’s carbon monetization frameworks.

Rock Flour Company makes Carbon Negative Fertilizers

Danish startup Rock Flour Company produces Greenlandic Rock Flour (GRF), a natural, non-toxic plant nutrient that supports climate-friendly crop production.

GRF is a fine rock powder rich in potassium, phosphorus, and other micronutrients that nourish soil, maintain soil pH, and improve soil structure and plant growth. It is formed due to the movement of the Greenland ice sheet. This process grinds bedrock into micro-sized particles under pressure. Summer meltwater then carries GRF out of the glacial system and deposits it along the shoreline.

The startup collects these deposits and transports them to warmer regions, where the rock flour weathers, releases nutrients, and captures carbon during the process.

GRF acts as a carbon-negative solution by sequestering an amount of CO2 equivalent to part of its own weight. It also serves farmers pursuing regenerative practices, agricultural cooperatives, and suppliers of organic fertilizers.

Rize enables Data-driven Rice Farming for Climate Resilience

Singaporean startup Rize develops Agronomist Cockpit, a data-driven measurement, reporting, and verification (MRV) application that improves rice farming. It guides agronomists with insights collected from in-house experts who work directly with farmers.

Agronomist Cockpit provides tailored recommendations on water use, fertilizer application, pest control, and sustainable practices. It enables agronomists to plan field visits, record observations, and share real-time insights with farmers to streamline workflows.

Moreover, the app captures verifiable field data with GPS-stamped photos and timestamps to track practices, as well as establishes farmer digital footprints by recording identities. It also includes site-specific nutrient management (SSNM) to ensure timely delivery of nutrients and increase crop yields.

Discover all Climate Tech Trends, Technologies & Startups

Advances in carbon-to-value solutions, nature-based carbon removal, green hydrogen, climate risk analytics, sustainable materials, and resilient infrastructure will define the next era of climate technology. Investors and policymakers are prioritizing innovations that address both mitigation and adaptation by unlocking new opportunities for startups and industry leaders.

As global demand for net-zero solutions intensifies, climate tech improves energy systems, supply chains, and industrial processes. Businesses that invest in these emerging technologies will gain competitive advantages and will also play a critical role in achieving climate goals and securing a sustainable future.

The Climate Tech Trends & Startups outlined in this report only scratch the surface of trends that we identified during our data-driven innovation & startup scouting process. Identifying new opportunities & emerging technologies to implement into your business goes a long way in gaining a competitive advantage.