Climate technologies—also known as climatech—are groundbreaking innovations designed to combat climate change by reducing harmful greenhouse gas emissions and extracting carbon from the atmosphere.
According to industry experts, this rapidly expanding market is projected to reach €600 billion in annual revenue by 2030, making it a cornerstone of the global push toward net zero.
What Is Climatech—and How Is It Different from Cleantech?
Climatech focuses specifically on technologies that address climate change.
It exists under the broader umbrella of cleantech—or clean climate technologies
Which target a wide range of environmental challenges including:
- Biodiversity loss
- Waste management
- Plastic pollution
Cleantech examples:
- Solar panels: Used in Argentina by BBVA’s Volunteering Plan and Fundación Sumando Energías to heat homes and lower GHG emissions.
- Green hydrogen, bioplastics, recycling systems, and water reuse solutions.
- Applied across diverse sectors: energy, agriculture, logistics, mobility, industry, air, and water.
“Cleantech encompasses innovative, non-polluting technologies that support both decarbonization and adaptation,” says Bianca Dragomir, director of Cleantech for Iberia.
Key Innovations in Climatech
Climatech solutions are developed to reduce CO₂ emissions, capture carbon, and support climate resilience.
This includes:
- Carbon Capture, Utilization, and Storage (CCUS)
- Energy storage systems
- Reforestation tech
- Agri-tech and sustainable farming practices
- Direct Air Capture (DAC)
One standout example is Climeworks, a company pioneering DAC technology to extract CO₂ directly from the atmosphere.
Their long-term goal?
Capture up to 1 gigaton of CO₂ annually by mid-century—an ambitious target compared to today’s staggering global output of 35 billion tons of CO₂ per year.
How Climate Technologies Are Funded
The growth of climate technologies and clean technologies is fueled by research and development, strategic partnerships, and robust financing mechanisms.
The innovation lifecycle typically moves through these phases:
- R&D and prototyping
- Startup formation and early investment
- Scaling for industrial, consumer, or government adoption
Successful projects require massive capital investments, sourced from:
- Public grants and subsidies
- Venture capital and private equity
- Infrastructure investors and guarantees
“The winning combination of tech innovation and diversified financing is what accelerates clean technology growth,” explains Dragomir.
ClimateTech’s Role in Achieving Net Zero
The Allianz report, ClimateTech Is the Missing Piece in the Net Zero Puzzle, underscores the sector’s growing significance and €600B revenue potential by 2030.
According to Gideon Blaauw from CleantechHUB:
“Relentless innovation in renewable energy and sustainable infrastructure empowers society to make a real impact.
Global collaboration and accessible solutions are the keys to success.”
Source: BBVA
