The 2025 Decarbonization Report provides an overview of the latest advancements, trends, and investments that drive the global transition to a low-carbon economy. Highlighting the growth and innovation within the sector, this report covers key areas such as electrolyzers, carbon offset initiatives, and the broader green economy. With firmographic data on workforce expansion, funding rounds, and technological developments, the report highlights the role of decarbonization efforts in addressing climate change.
This report was last updated in January, 2025.
This decarbonization report serves as a reference for stakeholders within the industry, investors, policymakers, and economic analysts, providing a snapshot of the industry’s health to map its trajectory for innovation and growth in the coming years.
Executive Summary: Decarbonization Outlook 2025
- Industry Growth Overview: The decarbonization market comprises over 75 880 companies. The sector grew by 8.44% over the past year. The global decarbonization market is expected to grow at a compound annual growth rate (CAGR) of 12.2% during the forecast period of 2024 to 2032.
- Manpower & Employment Growth: The industry employs 9.7 million individuals. Over 549 900 new employees were added in the last year.
- Patents & Grants: More than 124 650 technologies received patents in the decarbonization market. Likewise, over 14 430 companies received grants to support research and development.
- Global Footprint: Key geographical hubs include the USA, UK, India, Germany, and Canada. Major urban centers driving decarbonization efforts are London, New York City, Sydney, Melbourne, and Houston.
- Investment Landscape: The average investment value per funding round stands at USD 84.4 million. The industry closed more than 23 000 funding rounds with over 7200 investors. More than 10040 companies received investments.
- Top Investors: A few of the top investors include European Investment Bank, Apollo, Encap Flatrock Midstream, and more. Together, they invested over USD 27 billion in the decarbonization market.
- Startup Ecosystem: Five startups featured in this report include Toqua (decarbonizing shipping), AtmosZero (decarbonized steam), ExpectAI (climate action platform), Steady Energy (LDR-50 nuclear reactor solution), and COLIPI (renewable carbon fermentation).
Methodology: How we created this Decarbonization Report
This report is based on proprietary data from our AI-powered Discovery Platform, which tracks 25 million global companies, 20K+ technologies and trends as well as 110M patents and business reports. Our data includes detailed firmographic insights into approximately 5 million startups, scaleups, and tech companies. Leveraging this extensive database, we provide actionable insights on innovation, emerging technologies, and market trends.
For this report, we focused on the evolution of decarbonization over the past 5 years, utilizing our platform’s trend intelligence feature. Key data points analyzed include:
- Total Companies working on the trend
- News Coverage and Annual Growth
- Market Maturity and Patents
- Global Search Volume & Growth
- Funding Activity and Top Countries
- Subtrends within the decarbonization sector
Our data is refreshed regularly, enabling trend comparisons for deeper insights into their relative impact and importance.
Additionally, we reviewed trusted external resources to supplement our findings with broader market data and predictions, ensuring a reliable and comprehensive overview of the decarbonization market.
What data is used to create this decarbonization report?
Based on the data provided by our Discovery Platform, we observe that the decarbonization industry ranks among the top 5% in the following categories relative to all 20K topics in our database.
These categories provide a comprehensive overview of the industry’s key metrics and inform the short-term future direction of the industry.
- News Coverage & Publications: More than 29 170 publications focused on the decarbonization market.
- Funding Rounds: The sector experienced financial backing as evidenced by over 23 000 funding rounds documented in our database.
- Manpower: The manpower is showcased with more than 9.7 million workers employed. It added over 549 900 new employees in the past year alone.
- Patents: More than 124 650 decarbonizing technologies’ patents filed.
- Grants: Over 14 430 companies received grants.
- Yearly Global Search Growth: The yearly global search growth of 126.25% highlights the industry’s prominence.
Explore the Data-driven Decarbonization Report for 2025
The heat map illustrates the global distribution and concentration of decarbonization initiatives. It highlights the widespread nature of the market’s push towards a sustainable future. Our database includes over 3170 startups and 75 880+ companies dedicated to advancing decarbonization efforts. Over the past year, the sector grew by 8.44%.
The global decarbonization market is anticipated to grow at a CAGR of 11.7% from 2025 to 2030.
Credit: Grand View Research
The global decarbonization-as-a-service market was valued at USD 170 Million in 2023 and is projected to reach USD 19 960 million by 2030, growing at a CAGR of 97.1%.
Over 124 000 companies filed for patents to demonstrate research and development. Likewise, over 14 400 companies received grants. The industry employs a global workforce of 9.7 million. It added over 549 900 employees in the last year alone. Key geographical hubs driving these efforts include the USA, UK, India, Germany, and Canada, with major urban centers in London, New York City, Sydney, Melbourne, and Houston leading the decarbonization charge.
A Snapshot of the Global Decarbonization Industry
The decarbonization industry experienced growth and development, as demonstrated by the latest data. With a manpower of 9.7 million individuals, the sector added more than 549 900 employees over the past year. The number of companies operating in this space grew, reaching over 75 880.
Explore the Funding Landscape of the Decarbonization Industry
Investment in the decarbonization sector showcases an average investment value of USD 84 million per funding round. The industry closed more than 23 000 funding rounds and attracted over 7200 investors. This financial support is directed towards more than 10 040 companies, highlighting interest and commitment to advancing decarbonization technologies and solutions.
These decarbonization outlook figures underline the growing nature of the decarbonization market and emphasize its role in driving global sustainability efforts. The industry’s manpower, employee growth, and financial investments all point to its position in the global economy’s transition toward a more environmentally conscious future.
Who is Investing in Decarbonization?
The decarbonization segment attracts investments from top financial institutions, with a combined investment value of more than USD 27 billion. Here are the key investors and their contributions:
- The European Investment Bank allocated USD 7.4 billion across 29 companies.
- Apollo committed USD 3.7 billion to 10 companies.
- Encap Flatrock Midstream directed USD 3.6 billion towards 7 companies. It provided USD 350 million to Elysian Carbon Management, a company that provides end-to-end carbon capture and storage solutions.
- Kohlberg Kravis Roberts contributed USD 3 billion to 10 companies. KKR provided USD 300 million in corporate financing to a renewable energy and decarbonization solution platform called Origis Energy. It also invested in companies like Zevobe and Avantus.
- Deutsche Bank provided USD 2.7 billion to 9 companies.
- GIC channeled USD 2.5 billion into 16 companies.
- Blackstone Group pledged USD 2.4 billion to 10 companies.
- Goldman Sachs supplied USD 2.4 billion to 15 companies.
Access Top Decarbonization Innovations & Trends with the Discovery Platform
Explore the top trends in the decarbonization sector along with the firmographic insights:
- The Electrolyzer trend experiences growth with 604 companies identified in this space. These companies employ a total of 77 800 individuals, with 5000 new employees added in the past year. The annual trend growth rate for electrolyzers stands at 33.44%.
- The Carbon Offset trend encompasses 1897 companies, which collectively employ 115 800 individuals. Over the last year, this trend saw an addition of 11 900 new employees. The annual trend growth rate for carbon offset initiatives is 3.49%.
- The Green Economy trend includes 1158 companies and employs a total of 79 400 individuals. Despite adding 4300 new employees over the past year, the sector faced challenges. This is reflected in its annual trend growth rate of 4.8%.
5 Top Examples from 3100+ Innovative Decarbonization Startups
The five innovative startups showcased below are picked based on data including the trend they operate within and their relevance, founding year, funding status, and more. Book a demo to find promising startups, emerging trends, or industry data specific to your company’s needs and objectives.
Toqua provides Decarbonizing Shipping
Belgian startup Toqua uses advanced AI for ship performance modeling to enable decarbonization. Its product, Ship Kernel, enhances ship performance models by integrating data from noon reports, sensor data, and maintenance events. Ship Kernels save fuel by improving route and speed optimization and maintenance planning.
These models eliminate inaccuracies and provide data on fuel savings from retrofits and optimizations. Further, it provides speed over ground (SOG), revolutions per minute (RPM), and speed through water (STW). Moreover, it models directions of wave, wind, and current while providing fluctuations, structural deformations, or general wear and tear of the vessel.
AtmosZero offers Decarbonized Steam
US-based startup AtmosZero develops modular electrified boilers to generate decarbonized steam from ambient heat and electricity. Its system, AtmosZero Boiler 2.0, utilizes a heat pump technology to capture and convert air heat into high-temperature steam.
This system integrates into existing infrastructures without requiring complex modifications. It increases efficiency by using less electricity and offers carbon-neutral steam at temperatures exceeding 200°C.
ExpectAI develops Climate Action Platform
UK-based startup ExpectAI develops the Adaptive Carbon Profile (ACP), a climate action platform using public data and AI. It integrates intellectual property to offer carbon insights.
These AI-driven insights convert complex climate data into actionable steps and promote operational efficiency and profitability. This approach emphasizes impactful decisions over incremental changes.
Steady Energy creates LDR-50 Nuclear Reactor Solution
Finnish startup Steady Energy uses the LDR-50 nuclear reactor to produce emission-free heat at low temperatures and pressures. The LDR-50 technology features a compact design in which each reactor module generates a maximum heating power of 50 MW.
It includes physically separated water circuits and the lowest pressure inside the reactor retains any possible leak inside the reactor. It utilizes the light water reactor technology to offer low lifecycle emissions and high energy density. This modular reactor suits centralized district heating and remains unaffected by weather or electricity cost fluctuations.
COLIPI ferments Renewable Carbon
German startup COLIPI produces Climate Oil by fermenting renewable carbon from organic byproducts and CO2 from point sources. The company uses microbial yeasts and hydrogen-oxidizing bacteria to harness biogenic carbon dioxide and industrial byproducts.
Its patented gas fermentation bioreactor enhances carbon conversion efficiency. The power-to-liquid technology reduces production costs and promotes climate-neutral biomaterials. Climate Oil serves as a sustainable substitute for traditional vegetable oils and is used in cosmetics and surfactants, produced through yeast precision fermentation. Additionally, it uses bacterial gas fermentation to create sustainable aviation fuels and bioplastics.
Gain Comprehensive Insights into Decarbonization Trends, Startups, or Technologies
The 2025 Decarbonization Report emphasizes the progress and growth within the sector. The data details the advancements in electrolyzers and carbon capture solutions backed by investments and expanding workforces. Despite challenges in certain areas such as transportation or agriculture, the green economy continues to grow, in tandem with rising global awareness about sustainability. Get in touch to explore all 3100+ startups and scaleups, as well as all industry trends impacting decarbonization companies.
