2023 Climate Tech Overview: Challenges and Progress
2023 was a year of both stagnation and promise in the climate tech sector. Despite the challenges posed by inflation, supply chain disruptions, and geopolitical tensions, many companies remained committed to innovation.
Fusion Power: The ITER project emerged as Europe’s leading fusion research facility, advancing toward achieving sustainable energy production through controlled nuclear reactions.
Room-Temperature Superconductors: Progress was made in materials science, with researchers developing new superconducting compounds. However, these advancements were not yet ready for commercialization due to ongoing theoretical challenges and material instability.
Inflation Reduction Act (IRA): The IRA injected $369 billion into climate-related investments across the U.S., spurring growth in battery production and accelerating efforts by automakers and tech companies like Azolla Ventures, Union Square Ventures, At One Ventures, and Congruent Ventures. Europe responded with its own Green Deal Industrial Plan to support green technologies.
Investments: Several venture capital firms raised funds focused on climate tech, including Union Square Ventures ($200M), Azolla Ventures ($239M), At One Ventures ($375M), and Congruent Ventures, signaling a $1 billion commitment across four firms.
While 2023 didn’t deliver breakthroughs like fusion power or practical room-temperature superconductors, it saw continued progress through private investments and strategic collaborations, maintaining hope for future breakthroughs.
