The global cleantech sector is experiencing significant growth. In 2023 alone, investments in the energy transition reached $1.8 trillion, reflecting a 17 percent increase from 2022. This trend is mirrored in London, where climate tech venture capital investments totaled $3.6 billion last year, contributing to over $10 billion raised between 2018 and 2023. Experts predict the clean energy technology market as a whole will exceed $790 billion by 2030. Meanwhile, in Europe, the energy sector accounted for 41 percent of cleantech investments in Q3 2024, totaling 1.4 billion euros, while AgriTech saw investments rise from 7 percent in Q2 to 17 percent in Q3.
After closing 17 investments and totalling 2 million in its first two years, NextSTEP – (NextEnergy Sustainable Technology for the Planet) a London-based VC focused on funding and supporting startups dedicated to environmental sustainability – has decided to respond to the latest industry trends by allocating 1.6 million euros for 16 additional investments across key cleantech sectors in 2025, including: renewable energy, sustainable mobility, circular economy, waste management, water efficiency, and agritech. In addition, scouting processes and calls have been scheduled in partnership with some top players in the startup ecosystem, both in the UK and abroad.
Ahead of NextSTEP’s upcoming initiatives, Claudio Colombo, Managing Director of NextSTEP, outlined four key predictions for the cleantech sector:
Cleantech startups are set for exponential growth, attracting record investments, particularly in pre-seed and seed stages, as sustainability becomes a top priority for businesses and governments alike;
AI-powered solutions will accelerate progress in areas such as energy efficiency, water management and renewable energy infrastructure;
Green hydrogen is approaching significant breakthroughs, with declining production costs paving the way for large-scale applications and innovations in energy storage;
Carbon management startups focusing on carbon capture, storage and utilisation (CCUS) will secure substantial funding as companies intensify efforts to meet net-zero targets.
The cleantech VC NextSTEP also shared insights into clean energy innovations that will address sustainability and energy-related issues: the widespread adoption of distributed energy solutions will allow local communities to reduce energy costs, next-generation batteries will enter the market, solar efficiency will reach new heights, and the rapid expansion of EV charging infrastructure will address charging deserts, creating new opportunities for startups focused on electric vehicles.
“It is highly likely that the cleantech sector will experience significant growth in the UK and worldwide over the coming months” said Claudio Colombo, Managing Director of NextSTEP. “Record investments in climate-focused funds are expected to surpass previous levels, driven by specialised VC funds, with London maintaining its role as a global financial hub. Public-private partnerships will drive innovation, as governments collaborate with VCs to fund high-impact solutions for climate change. We will also see an increase in SPACs and IPOs as more cleantech startups go public, reflecting growing confidence in sustainable technologies with strong unit economics. Overall2025 will be a year of transformation not just for NextSTEP, but for cleantech as a whole, as government policies, investment capital and innovation hubs converge to scale solutions for a sustainable future.”
For additional information:
