Tonje’s Take: It’s Not About Climate Tech—It’s About the Future
There has been an ongoing debate about the term climate tech. Some argue that it is losing momentum, while others are rebranding their companies to move away from the label. I argue that climate tech is not losing momentum, it has simply become a given.
Climate tech is not a sector in and of itself—instead, it cuts across all industries. Every part of the economy, from energy and transportation to agriculture, finance, and manufacturing, is being reshaped by the pressures of climate change. So most companies have started to ingrain these considerations in their products and services. To use an example: Findable, a proptech startup from Oslo recently received a series A funding from one of the leading global VCs, Point9. Findable wouldn’t necessarily define themselves as a climate tech startup and Point9 is not a climate tech fund. But Findable is enabling sustainable and efficient facility management that has a positive impact on the planet.
So the question should not be what counts as climate tech; but rather how and where should we invest to shape the future. What matters is that we continue on investing into climate solutions. If we begin to experience a drop in climate tech investments and if we see that funds, climate or not, begin to allocate less of their investments into climate solutions, then that is the time to worry.
The Climate Tech Market: A New Phase, Not a Decline
Yes, the climate tech venture landscape is shifting. But despite a general set back on venture capital, data shows that investment into climate solutions remains more resilient than the broader venture market. ByFounders report, “Shape of the New Nordics 2024”, shows that climate tech and energy are one of the leading verticals of top VC investments in the Nordic and Baltic regions. In Norway, over 50% of total investment is going into climate tech startups and we are experiencing an increase of growth companies focusing on climate solutions.
I would argue that climate-focused innovation is not slowing down; it is evolving. And data shows that early-stage investment remains strong. As for myself and Oslo Business Region, we will continue to use climate tech as a term to brand the investment opportunities in Oslo. Because I know that investors will keep on investing in climate solutions, branded climate tech or not, as long as they give them the best financial return. And I believe that many of these solutions are coming out of Norway.