AI-driven climate tech innovations and adaptation startups are rising to meet the challenges of a changing world and accelerating climate action.
Cleaner Tech in an Uncertain World: Climate Innovation in 2025
Ten years after the landmark Paris Agreement, the world’s commitment to climate tech stands on shaky ground. Despite funding for the global energy transition surpassing a record $2 trillion in 2024, momentum around climate action has noticeably stalled in 2025. Geopolitical distractions and a shifting political landscape are partly to blame. In the U.S., President Donald Trump’s renewed term has brought promises to roll back his predecessor’s clean energy policies. Meanwhile, many nations have redirected attention to national defense and navigating the impact of sweeping U.S. tariffs, pushing climate further down the global agenda.
Adding to the challenge, venture capitalists have begun pivoting away from climate ventures in favor of artificial intelligence, now seen as the hottest frontier in tech. This shift raises a crucial question: what kinds of climate technologies can survive — and even thrive — in this turbulent environment?
Some answers lie with the winners of this year’s BloombergNEF Pioneers awards, which spotlight startups developing breakthrough carbon-cutting technologies. These firms highlight a trend: the growing convergence of AI and climate innovation. Instead of exacerbating emissions, AI is being increasingly leveraged to curb them. From optimizing power grid efficiency to managing agricultural ecosystems with smart beehives, machine learning is becoming a vital tool in the climate fight.
Equally important is the long-overlooked area of climate adaptation. Historically underfunded — attracting just 7.5% of all climate tech investment between 2019 and 2020 — this sector is finally gaining traction. With escalating wildfires, floods, and extreme heat becoming the norm, the urgency to adapt has never been clearer. Startups in this space, once seen as niche, are now essential players in building resilience against a changing climate.
In a world of policy backtracking and investor uncertainty, cleaner tech is evolving to meet the moment — powered by resilience, innovation, and a growing recognition that adaptation and AI may be the unexpected allies the planet needs.
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