Source: Fortune
Summary
Climate tech venture capital fundraising dropped nearly 40% in 2025 compared to 2024, according to PitchBook data. Despite this, AI has created new opportunities for climate-focused investments. Dawn Lippert of Earthshot Ventures and Mike Schroepfer of Gigascale Capital discussed how climate tech is regaining momentum. Schroepfer raised $250 million for a climate fund, rejecting suggestions to rebrand it as an AI fund. Lippert noted that 90% of Earthshot’s portfolio companies have generalist tech investors as co-investors.
Our Reading
The numbers tell one story.
Fundraising for climate VCs dropped 40% in 2025.
AI is now driving climate tech deals.
Investors are still looking for energy solutions.
Climate is back, but not without challenges.
Author: Evan Null
AI and Climate Tech
AI has changed the climate conversation. The shift from being seen as a niche topic to a mainstream focus has been rapid. Climate Week NYC highlighted this transformation, with AI playing a central role in discussions about energy and sustainability.
Climate tech has gone from being a hot topic to something that was once difficult to talk about. Now, with AI’s rise, it’s gaining traction again. The conversation around data centers and energy use has become more urgent, bringing climate concerns back into the spotlight.
John MacDonagh of PitchBook noted that AI is both a challenge and an opportunity for climate tech. While data centers require reliable energy, climate tech offers solutions like renewables and storage. However, these solutions still face hurdles like intermittency and high costs.
Despite the drop in climate VC fundraising, startups are still attracting significant capital. This suggests that the market is adapting to new realities, with AI acting as a catalyst for investment in sustainable energy and infrastructure.
Investors like Dawn Lippert and Mike Schroepfer are navigating this new landscape. Lippert emphasizes the importance of climate-focused investors in shaping the impact of tech companies. Schroepfer, with his $250 million climate fund, is betting on the long-term potential of the sector.
