Top 10: Trends and Predictions in Climate Tech
Climate tech has had a phenomenal year in 2024, experiencing an upward trajectory that will only continue to climb in 2025.
The sector has grown so much so that we launched ClimateTech Digital — your one-stop shop for all things climate tech news, innovation, inspiration and knowledge-sharing.
Despite barriers associated with costs, climate tech adoption is playing a significant role in addressing and mitigating climate change-related problems.
Below, we run through 10 examples of applications of climate tech that have taken the world by storm in 2024, as well as those we expect to see take off in 2025.
10. Construction
Buildings and construction contribute nearly 40% of global greenhouse gas emissions, according to the UN Environment Programme. An increase in focus on sustainable building practices and materials, such as green roofs with living vegetation and self-healing concrete, could help to improve this.
Chevron-backed startup Blue Planet is storing captured carbon in aggregate, concrete and limestone. Each tonne of its aggregate contains 440kg of sequestered CO₂ that will never escape into the atmosphere. The company says its limestone aggregate sequesters so much CO₂ in concrete that it can make an entire building carbon negative.
9. Carbon tracking
With sustainability regulations coming into play around the world, more companies will have to start tracking their carbon emissions. Carbon tracking tools are integrating AI and machine learning to process large datasets and optimise emissions reporting.
“AI is set to revolutionise how companies track and forecast emissions, particularly for large organisations,” says Alekhya Reddy, VP of Product at Optera.
“Spreadsheets and traditional reporting tools can’t handle the volume of data involved in emissions tracking across thousands of facilities and suppliers.
“But AI truly shines in its predictive capabilities, especially for Scope 3 emissions. By considering global events and external factors that impact supply chains, AI models will offer unprecedented foresight into future emissions trends.”
8. Climate modelling
Climate modelling systems are becoming more sophisticated, incorporating interactions between physical climate, biosphere and atmospheric and oceanic chemistry. These models could provide more accurate simulations of global biogeochemical cycles, vegetation, land use and ice sheets.
Climate models may achieve higher spatial resolution, allowing for more detailed regional climate projections. This could be particularly valuable for assessing local impacts and developing targeted adaptation strategies.
Advancements in this area could support international climate assessment reports, climate change mitigation policies and decision-making around the world.
7. Climate tech in hard-to-abate industries
Climate tech innovations in hard-to-abate sectors like manufacturing, construction and heavy industry are crucial for combating climate change.
These sectors, which are responsible for significant global emissions, are exploring various technologies to reduce their carbon footprint.
For example, steelmaking is, unsurprisingly, an extremely energy-intensive and polluting process. Tata Steel’s site in Port Talbot, Wales, retired its last blast furnace earlier in 2024 and will reopen in 2027 with a £1.25bn (US$1.6bn) electric arc furnace — taking a giant leap toward more sustainable steel production.
“But there’s no question the steel industry in totality faces challenges due to the dirty steel that's produced in a lot of countries that don't have the same regulations as modern economies,” Tabitha Stine, Nucor’s General Manager of both Marketing & Branding and Energy Solutions Services told Energy Digital.
6. Sustainable agriculture solutions
You’ve probably read this many a time across ClimateTech Digital over the last few months, — climate tech is revolutionising the agricultural sector. How? Thanks to innovative solutions for sustainable farming practices.
These technologies help optimise resource use, reduce emissions and enhance crop resilience in the face of changing climate conditions.
From M&S’ low-carbon parsnips and Diageo’s agriculture tech to combat climate change in East Africa to TRACT's SaaS platform for agricultural sustainability and Microsoft AI changing the face of water management, climate technology is reimagining agriculture and making it more sustainable while securing its future for both farmers and consumers alike.
“Agriculture is also amongst the most impacted by climate change,” Microsoft says. “Farmers depend on predictable weather for their farm management practices and unexpected weather events — for example, high heat and floods — leaves them unprepared to handle impacts by climate change.
“By adopting sustainable agricultural practices, including those that can help remove additional carbon from the atmosphere, farmers can also help drive progress to address climate change.
“Our goal is to enable researchers, practitioners and data scientists to build affordable digital technologies to help farmers estimate the emissions in their farm, with climate adaptation by predicting weather variations — and to determine the right management practices that can be profitable and help improve soil health.”
5. AI-driven insights
AI well and truly sprung into public consciousness in 2024, with the intelligence transforming how companies gather and leverage environmental data, offering smarter solutions for climate risks, environmental shifts and resource optimisation.
Geospatial AI (GeoAI), for example, is particularly well-positioned to attract funding in the coming months as it provides essential insights for industries looking to mitigate environmental risks.
Partnerships between tech giants like IBM and NASA, who together pioneered the watsonx.ai geospatial foundation model, are further advancing GeoAI applications, positioning it as a vital tool for addressing climate challenges.
Karen St. Germain, Director of the Earth Science Division of NASA's Science Mission Directorate, explains: "The NASA foundation model will help us produce a tool that people can use: weather, seasonal and climate projections to help inform decisions on how to prepare, respond and mitigate.”
4. Alternate protein sources
This may feel like a rogue entry, but with livestock farming responsible for 15% of global greenhouse gas emissions, investors are considering alternative protein sources and consumers are moving away from consuming meat.
This market is poised for significant growth, driven by lifestyle shifts and its role in combating climate change.
Impossible Foods’ products — which include plant-based ground beef, meatballs and sausages — use 87% less water and 96% less land than conventional meat, reducing food-related emissions significantly. Beyond Meat’s quarter-pound Beyond Burger generates 90% fewer greenhouse gas emissions than a quarter-pound beef patty in the US, which produces the equivalent of 3.7kg CO₂e. The Beyond alternative produces just 0.4kg CO₂e.
“The global climate crisis underway dictates greater, not less, urgency in the adoption of all solutions, of which ours is among the most immediate and powerful,” Beyond Meat CEO Ethan Brown says.
3. Renewable energy integration
An obvious choice to round off the top three, renewable energy integration is a key — but sometimes overshadowed — component of climate technology as it is integral in reducing carbon emissions and combating climate change by connecting green energy to the grid.
Integration helps battle the challenge of balancing variable energy supply with demand, which requires advancements in energy storage, transmission and grid management technologies.
This process is essential for reducing carbon emissions and achieving climate goals, as it enables a higher percentage of electricity to be generated from clean sources. Successful integration requires innovative approaches to forecasting, control systems and flexible grid operations.
2. Retrofitting existing infrastructure
A significant way of combating climate change and reducing carbon emissions, retrofitting existing infrastructure reduces the need for unnecessary construction, curtailing further climate impact.
It also involves improving existing buildings that may have not been built with environmental impact in mind and ensures the enhancement of energy efficiency and sustainability.
Architect Gensler leverages data and technology to enhance energy efficiency and reduce carbon footprints in building design.
Speaking to ClimateTech Digital last month, Gensler’s Katie Mesia, Design Resilience Leader Principal, and Sustainability Director Principal David Briefel shared how the firm, creates a consistent approach for specifying and measuring environmental impact with its GPS standards.
“There are probably more tools than people to use them when it comes to climate,” Katie says. “Tools aren’t something we lack, there’s no problem. So the real thing that we're working on is making sure we use the right tool at the right time.”
She adds: “We're firing on all cylinders when we have existing buildings and we're renovating them.”
1. Carbon capture
It wouldn’t be a climate tech top 10 without mentioning carbon capture and this time it tops the list.
While the deployment of carbon capture and storage (CCS) has not yet fully realised its potential, the increase in advanced carbon capture initiatives in 2024 solidifies its importance in global climate action plans.
CCS technologies witnessed remarkable growth in 2024. By mid-year, global capture capacity in development surged by 15%, introducing approximately 55 million tonnes of potential CO₂ reduction. The 50 operational facilities demonstrate the sector's expanding infrastructure, with an additional 44 facilities under construction.
The CCS project landscape transformed dramatically, with total projects climbing to 628 - representing a substantial 60% increase from the previous year. Critically, the capacity of projects under construction expanded by 57%, signalling robust industry confidence and technological momentum.
Andrew Beebe is Managing Director at Obvious Ventures and puts his thoughts forward for how carbon capture will evolve through 2025 and beyond.
“Carbon removal will hit overdrive,” he says. “Technologies for carbon capture and sequestration are rapidly advancing.
“Innovations in direct air capture and bioenergy with carbon capture and storage are scaling up. Both are making it possible to remove and store carbon dioxide far more efficiently and for the world to meet broad climate targets.”
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