CommerzVentures has published its 2025 Climate Fintech Report, highlighting a strong year for investment in Climate Fintech despite wider economic challenges.
In 2024, the sector secured a total of US$2.7 billion in funding, representing a 17% increase from the previous year.
This growth significantly outpaced the overall venture capital market, which expanded by only 3% during the same period.
European Climate Fintech startups attracted the most investment, securing 2.5 times more venture capital funding than their North American counterparts.
European companies collectively raised US$1.95 billion across 111 financing rounds, whereas North American startups secured US$765 million across 27 rounds.
The report also highlights a geographical shift in European Climate Fintech investment, with Germany surpassing the United Kingdom for the first time as the leading destination for capital, raising US$832 million in funding.
Despite economic headwinds, early-stage Climate Fintech companies continued to attract strong investor interest.
More than 50% of all financing rounds in 2024 were at the Pre-Seed and Seed stages, indicating sustained confidence in the sector’s long-term potential.
Investment activity was particularly concentrated in three key areas: Energy x Fintech, which raised the highest amount of funding at US$870 million, followed by Carbon Markets (US$460 million) and Climate Risk (US$404 million).
The report also highlights emerging trends in the sector, including increasing regulatory and corporate demand for carbon accounting, ESG compliance, and risk management solutions.
As companies and financial institutions seek to align their operations with climate goals, Climate Fintech firms are playing an increasingly critical role in facilitating sustainable financial services and investment strategies.
The sector’s resilience in 2024 suggests that Climate Fintech will remain a key area of growth within venture capital, particularly as regulatory frameworks evolve and investor awareness of climate-related financial risks continues to rise.
Featured image credit: edited from freepik
