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Emerald Technology Ventures Unveils 2025's Top Climate Tech Trends

This analysis provides expert insights into the key climate technology trends expected to shape 2025.

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Emerald Technology Ventures Unveils 2025's Top Climate Tech Trends

Emerald Technology Ventures, a venture capital firm specializing in early and growth-stage technology companies in areas like energy transformation, circularity, water, sustainability, and industrial IT, has published its "Top Climate Tech Trends 2025" report. This analysis provides expert insights into the key climate technology trends expected to shape 2025.

The report highlights major innovation areas, including packaging circularity, AI specialization, energy technology, and global water stewardship, reflecting the increasing global demand for sustainable solutions across industries.

Key findings from the report include:

  1. Scaling Circularity in Packaging: With corporate sustainability commitments and regulatory pressures driving innovation, 2025 will see substantial progress in packaging circularity. Innovations will focus on paper-based materials, sustainable polymers, advanced coatings, and smart packaging. Startups such as Genecis, Paptic, and Vytal are spearheading these efforts.

  2. Specialized AI in Industry, Robotics, and Analytics: The year will witness the rise of specialized AI agents designed for specific tasks, including managing warehouse operations and automating ESG reporting. In robotics, drones and automated systems are revolutionizing sectors like renewable energy and infrastructure. Companies like Flybotix, Sensyn Robotics, and Sewer AI are leading in this space.

  3. Addressing Growing Electricity Demand: The electrification of industries and expansion of AI data centers are creating new hotspots of energy demand. According to the IEA, global electricity demand from AI and related technologies is expected to grow by nearly 75% by 2026. Innovations such as geothermal projects, small modular reactors, and grid flexibility solutions are being developed to meet this challenge.

  4. Advancing Global Water Stewardship: Water is becoming a critical financial, operational, and environmental risk for companies worldwide. In 2025, Emerald is focusing on technologies that enhance water availability, quality, and transparency. Startups like Kilimo, FIDO, and Aganova are creating solutions to address these pressing global water challenges.

The report also emphasizes the increasing momentum in climate tech investments, driven by alignment among governments, corporations, and startups aiming for net-zero emissions. Emerald's insights are based on extensive research and collaboration with portfolio companies, which are leaders in sustainable innovation across Europe, North America, South America, and Asia.

"Emerald has been a leader in climate tech investing for over 20 years," said Neil Cameron, Partner and circularity expert at Emerald. "Our 2025 trends highlight the critical role of technology in solving sustainability challenges while showcasing significant market opportunities for innovative companies."

Ecozen Raises USD 23 Million for Sustainable Growth and Innovation

Ecozen, a Pune-based startup specializing in climate-smart technology solutions, has secured over USD 23 million in debt funding from ResponsAbility Investments AG, Northern Arc Capital, Maanaveeya Development & Finance, and other investors, including existing backers.

Founded in 2010 by IIT Kharagpur alumni Devendra Gupta, Prateek Singhal, and Vivek Pandey, Ecozen aims to use the funding to scale its operations, advance its climate-smart solutions, and strengthen its leadership in sustainable technologies.

The company has produced over 300,000 solar pump controllers since its inception, with 100,000 units manufactured between March and December 2024 alone. These efforts have significantly contributed to the reduction of over 2 million tonnes of greenhouse gas emissions, including a 660,000-tonne reduction in 2024, according to the company.

In 2025, Ecozen plans to diversify its offerings with customized products designed to meet the evolving needs of businesses and communities, said co-founder and CEO Devendra Gupta. The recent funding will support the company’s growth and operational expansion.

ResponsAbility Investments AG, a Swiss-based impact asset manager, specializes in private market investments aligned with the UN Sustainable Development Goals. Their focus areas include climate finance for net-zero transitions, financial inclusion for small businesses, and sustainable food solutions to address global population growth.

Maanaveeya Development & Finance, the Indian arm of the US-based Oikocredit, brings nearly five decades of experience as a social impact investor. The cooperative supports organizations in financial inclusion, agriculture, and renewable energy sectors.

$350 Million Raised by responsAbility for Asia Climate Investment Strategy

M&G’s impact investing arm, responsAbility Investments, announced raising over $350 million for its Asia Climate Strategy, aimed at reducing CO2 emissions in Asia through investments in low-emission technologies.

Launched in November 2023 with a target of $500 million, the strategy aims to achieve a reduction of 16 million tons of CO2 emissions over the lifetime of its assets. With this latest closing, responsAbility has surpassed its initial private sector capital mobilization targets and is on track to reach its $500 million goal within the year.

The third closing secured $100 million from institutional investors, bringing private sector commitments to over $200 million—more than half of the fund’s target volume—while public and development finance institutions contributed $154 million.

The fund focuses on investments in renewable energy, battery storage, e-mobility, energy efficiency, and circular economy sectors. Its goal is to mobilize capital for Asia’s energy transition, addressing the region’s contribution of over 50% of global CO2 emissions and its anticipated surge in energy demand by 2050.

Stephanie Bilo, Chief Client & Investment Solutions Officer at responsAbility, emphasized the importance of collaboration:
“Financing the energy transition in emerging markets like Asia requires close cooperation between public and private sectors. Our strategy’s blended finance approach offers institutional investors attractive, risk-adjusted opportunities while making a significant impact on regional decarbonization.”

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