The Rise Of Climate Tech Investment: Tracking The Trillion-Dollar Incentives


As the world grapples with the urgent need to address climate change, the once overlooked climate tech industry is now experiencing a surge in investment. With more than $1 trillion in tax credits, grants, and incentives available for climate- and energy-related investments and purchases, the sector is attracting significant attention from investors and businesses alike.

Key Takeaway

The climate tech industry is experiencing a surge in investment, with over

trillion in incentives available for climate- and energy-related investments and purchases. The sector’s growth is fueled by significant policy commitments in the U.S. and Europe, prompting the emergence of platforms aimed at tracking and leveraging these incentives.

Investment Momentum

Over the past five years, investment in climate tech has been steadily gaining momentum. Despite the broader startup slowdown, the third quarter showed promising signs of a rally in the sector, driven in part by substantial commitments to climate-forward industrial policies in the U.S. and Europe.

Policy Impact

The Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law in the U.S., along with the Green Deal in the EU, have unleashed a wave of financial support for climate tech. These policies are expected to generate around $1 trillion in incentives, with the potential for even greater impact. Goldman Sachs estimates that the IRA’s climate provisions alone could result in $1.2 trillion in incentives, stimulating approximately $3 trillion in private investment.

Tracking the Incentives

With such substantial financial support available, various websites, apps, and startups have emerged to help companies navigate and capitalize on these incentives. However, the absence of a comprehensive database for all these rebates and incentives presents a significant challenge. Startups like Upfront are working to address this gap by cataloging incentives for merchants, while organizations like Rewiring America are advocating for the integration of incentives into sales proposals, recognizing it as a crucial aspect of conducting business in the climate tech space.

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