12 investors dish on what 2026 will bring for climate tech

As 2025 draws to a close, the anticipated decline in climate technology investment has not materialized. Despite political headwinds, including the efforts of the Trump administration to dismantle previous policies and a more tempered approach from the European Union, investments in climate and clean energy sectors remain steady. According to CTVC, venture capital allocations in these areas have held relatively stable compared to 2024, defying earlier expectations of a downturn. This resilience can be attributed to the persistent threat of climate change and the growing competitiveness of clean technologies against fossil fuels. Technological advancements have made renewable energy sources like solar, wind, and battery storage significantly more affordable and efficient. Investors are increasingly optimistic about the future of data centers, which have emerged as a focal point in climate technology. According to Tom Chi of At One Ventures, the momentum within the AI sector is expected to bolster the importance of data centers even further. His colleague Po Bronson of SOSV’s IndieBio echoed this sentiment, noting the ongoing discussions in corporate environments surrounding data center investments. Looking ahead to 2026, experts suggest a shift in focus from merely meeting energy demands to enhancing resilience and independence from traditional power grids. Lisa Coca from Toyota Ventures highlighted that future discussions will likely center on how data centers can decouple from grid reliance, addressing public concerns over rising electricity costs due to increased demand. Investors are optimistic about various energy technologies, with geothermal, nuclear, and solar power gaining traction. Daniel Goldman of Clean Energy Ventures noted that zero-carbon generation is becoming one of the most affordable energy sources, driving down costs for both grid-scale and distributed battery solutions. While some investors raised concerns about a potential bubble in the AI sector affecting energy investments, they largely believe that infrastructure projects are already funded and moving forward. The consensus is that, despite the potential for market fluctuations, the demand for clean energy solutions will continue to grow. Notably, the landscape for IPOs in 2026 is shaping up with nuclear and geothermal startups gaining attention. Fervo Energy, a leading geothermal company, has been mentioned as a strong candidate for public offerings, particularly as it advances its significant projects. As the industry progresses, there is also a shift towards reindustrialization, with a focus on building domestic supply chains for critical components like batteries and robotics. Investors see this as essential for enhancing resilience in energy systems while addressing labor shortages and national security concerns. In conclusion, as we move into 2026, the climate tech sector is poised for growth, fueled by innovation and a renewed focus on sustainable practices. The push for cleaner, more resilient energy sources will continue to shape the investment landscape, creating opportunities across various sectors.