US Dominates Climate-Tech Financing in 2024 Amid Global Funding Slowdown

In the first half of 2024, the U.S. led global climate-tech financing with $6.7 billion, mainly for clean power and energy storage sectors.

China followed with $5.1 billion, and Canada was third with $1.8 billion. Overall climate-tech funding dropped significantly from $44 billion in early 2023 to $22 billion this year, with fewer deals completed compared to last year.

Venture capital funding for climate-tech fell to 12% of global venture financing, as interest shifted towards artificial intelligence, which saw $47 billion in investments—a 60% increase from the previous year.

The US has seen a rise in cross-border climate-tech deals, partly due to incentives like those in the Inflation Reduction Act.

Major deals included investments in US companies like Pine Gate Renewables and Oklo Technologies, as well as notable international transactions such as the $441 million US listing of Chinese EV maker Zeekr. Despite a current downturn, if the trend stabilizes, total climate-tech funding for 2024 might still reach around $45 billion.

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