Climate technology is often seen as a winter industry due to cooling political and investor interest, but a new report from the International Energy Agency (IEA) suggests that this may not be the case. In fact, the IEA says there has never been a better time to invest in climate tech.
Just over a decade ago, the IEA predicted a linear increase in carbon emissions by 2050, with a forecast of 46 metric gigatons per year. However, if countries had cut emissions as pledged, the best-case scenario would have been 38 metric gigatons per year. Today, if countries continue with business as usual, the IEA expects emissions to level off at 38 metric gigatons per year. But if countries follow through on their pledges, the IEA predicts we’ll hit around 33 metric gigatons per year by 2040.
This shift in expectations highlights how rapidly our understanding of climate change has changed over the past decade. New technologies like cheap solar and wind power, paired with inexpensive batteries, have made it possible to achieve significant reductions in carbon emissions.
The IEA’s revised projections also reflect changes in global attitudes towards reducing emissions. Germany is seeing new records in electric vehicle sales, despite the government repealing incentives. Developing countries are adopting clean power at a rapid pace, and China has committed to peaking its emissions before 2030. These examples suggest that we may be at an inflection point, where the rate of change in carbon emissions begins to bend downward.
For investors, this presents an opportunity for dramatic growth in climate tech companies. Geothermal energy and grid-optimizing software are poised to propel further advancements in optimism.
Source: https://techcrunch.com/2025/11/22/why-now-is-the-best-time-to-invest-in-climate-tech