Climate Tech in FinTech

The future of our planet depends on the technologies we choose to build today, and a vital part of these is climate tech: technologies designed to reduce carbon emissions, enhance energy efficiency, and build resilience to climate change. It includes everything from carbon capture and storage to renewable energy infrastructure, battery innovation, precision agriculture, and digital carbon accounting. The rise of climate tech has created a massive opportunity for the FinTech sector. FinTechs are actively investing in and enabling climate tech, green tech, and ESG investments.

FinTechs, long known for disrupting traditional banking, are increasingly channeling their innovation and capital into the climate space. Some are launching sustainable banking products, others are funding clean energy startups, and many are embedding carbon tracking or ESG analytics into payment systems and investment platforms.

For example, GreenFi, a US-based green FinTech startup, recently launched with a USD 17 million seed round to offer sustainable checking accounts, green loans, and climate-conscious credit cards. It represents a growing wave of green FinTech startups that merge financial technology with climate tech venture capital.

Key growth areas

After a brief slowdown in 2023, the US climate tech sector has regained momentum. According to Silicon Valley Bank’s 2025 annual report, climate-tech funding in the US recorded six consecutive months of growth. Industry data shows that US climate-tech equity investments reached ~USD 22.4 billion in 2024, with the upward trajectory continuing into 2025. Growth areas include the following:

• Carbon management and direct-air capture: ~USD 750 million raised in 2024, reflecting growing corporate demand for carbon removal solutions
  
  
• Advanced energy storage and battery chemistry: Over half of supply chain investments in 2024 focused on next-generation batteries, a cornerstone of renewable energy expansion
  
  
• Clean mobility, hydrogen, and EV infrastructure: With transportation responsible for over 25% of US greenhouse gas emissions, clean mobility remains a major target for green tech investments
  
  
• Low-carbon construction materials and sustainable agriculture: Investors are backing technologies that reduce emissions in hard-to-decarbonize sectors.

The evolution

The past few years have seen a clear evolution in climate tech investments. Early attention to clean energy has expanded into frontier technologies, AI-driven analytics, and scalable decarbonization tools.

1. The AI and data revolution

AI is transforming climate tech. AI applications now support emissions monitoring, smart energy management, and climate risk modeling. PwC reports that AI-related climate tech investments jumped from 7.5% of total funding in 2023 to ~15% by late 2024.

2. Financing green infrastructure

Green infrastructure projects, such as EV charging networks and solar deployments, need financing. FinTechs are stepping in with innovative products: green loans, pay-as-you-save models, and asset-as-a-service financing for renewable installations. These offerings lower barriers for consumers and businesses to adopt clean technologies, making green tech investments more accessible. For example, Sunstone Credit, a Baltimore-based FinTech, provides solar loan financing for SMBs.

3. Carbon markets and climate risk platforms

A rapidly expanding subsector involves digital platforms for carbon accounting, verification, and trading. These green FinTech startups use blockchain and advanced data systems to ensure transparency in carbon credits and offsets. Such tools help corporations and investors navigate the growing voluntary carbon markets landscape, aligning with ESG investment principles. An example of this is Northern Trust’s Carbon Ecosystem platform.

4. Transition from early-stage to deployment-stage investment

The market has matured from speculative early-stage bets to larger, later-stage investments focused on scaling proven technologies. Series B and C rounds dominate current climate tech venture capital flows, signaling growing investor confidence in commercialization. For example, Watershed (a US-based emissions/data-tracking software startup) secured a USD 100 million Series C round in 2024, at a valuation of ~USD 1.8 billion.

5. Cross-sector integration

Sectors such as sustainable aviation fuel, precision agriculture, and green construction materials are now firmly within the climate tech investment universe. These “hard tech” segments are increasingly financed through FinTech-enabled capital solutions, including sustainability-linked loans and tokenized climate bonds.

Climate tech and clean energy infrastructure companies are increasingly being consolidated through high-value M&As, signaling a shift from early-stage innovation to large-scale deployment and integration. One of the most significant deals was Constellation Energy’s acquisition of Calpine Corporation for ~USD 16.4 billion, with a total enterprise value of ~USD 26.6 billion including debt. Another example is Nextracker (a US-based solar tracking company) acquiring Bentek Corporation (a California-based eBOS component manufacturer) for ~USD 78 million.

The politics

However, President Donald Trump’s return to office in 2025 has reshaped the policy environment surrounding climate tech investments and ESG investments. His administration has emphasized deregulation, domestic energy expansion, and a rollback of President Joe Biden-era climate and ESG rules.

A major development has been the continued political pushback against ESG investing. In early 2025, US investors withdrew an estimated USD 6.1 billion from ESG-labeled funds. Analysts attribute much of this decline to Trump’s rhetoric and policy stance opposing ESG mandates. The administration has also moved to overturn rules allowing retirement-plan fiduciaries to consider ESG factors in investment decisions. This rollback could limit institutional demand for ESG-aligned products, at least in the short term.

In December 2024, President Trump announced a “fast-track permitting initiative” to accelerate approvals for US infrastructure and energy projects exceeding USD 1 billion, including fossil fuel developments. Supporters argue this will boost domestic investment and job creation, while critics warn it undermines climate commitments and creates uncertainty for the climate tech sector. Reduced federal emphasis on ESG may temporarily slow institutional inflows into climate-aligned funds. However, private-sector momentum and state-level incentives are keeping climate tech venture capital active. California, New York, and Massachusetts continue to offer tax incentives and grants for clean energy startups, providing alternative policy support.

Moreover, many investors view the shift as an opportunity rather than a setback. A growing number of venture funds are pivoting toward commercially viable climate tech investments—projects that can generate strong returns independent of federal subsidies. FinTech firms, agile by nature, are well-positioned to thrive in this environment by offering new financing mechanisms and data-driven ESG analytics.

What is to come

In the years ahead, success will hinge on proving that sustainability and profitability can coexist. If the US FinTech and climate tech sectors can continue aligning financial innovation with real-world impact, the result will be a cleaner, smarter, and more resilient economy, powered by climate tech investments that pay dividends for both investors and the planet.

To achieve this, robust market intelligence will be essential, helping investors, FinTech leaders, and policymakers identify scalable opportunities, manage risk, and direct capital toward the most impactful climate tech innovations.

Be sure to visit SPEEDA Edge’s resources page for the latest developments and trends within this space. You can also request a demo and experience first-hand how SPEEDA Edge’s platform can help you.