What will happen to Cleantech in 2025?

This year will be one of the hardest for the Cleantech industry. Here is why.

Shift of global priorities

💥 With wars raging on and old alliances crumbling, countries scramble to spend more on defense. Climate spending by governments risks being pushed back or scaled down.

🤖AI is in the spotlight. Investors are mesmerized by AI and its promises of making a quick buck. Coupled with the defense startups growing popularity, climate tech startups' financing is getting harder.

Cleantech ain’t delivering on promises

💸 Despite the growing share of renewable energy in Europe, and the US, energy prices for consumers are not going down as promised.

🚘 Western EV makers cannot make an affordable EV

🪦 A wave of bankruptcies of high-profile cleantech startups, like Northvolt, Arrival, Universal Hydrogen, Fisker, etc., damaged the credibility of climate startups.

Coupled with the fact that in 2024 the planet breached the 1.5C warming threshold, these developments combine to create a “perfect storm” - while the climate visibly deteriorates, government and investors seem to be looking the other way.

What are your thoughts? Will Net-Zero policies be shelved in 2025? Or will Cleantech in 2025 achieve “escape velocity” and develop on its own, without government support? Post your thoughts in the comments below!