Defying expectations, climate tech has not only survived but shown remarkable resilience amidst political headwinds and shifting global priorities. As whispers of its demise circulated, the sector has quietly recalibrated, revealing a landscape ripe with opportunity and innovation. TechCrunch spoke with 12 leading investors to get their take on what 2026 holds for climate tech.

The year 2025 was initially painted as a potential graveyard for climate tech. With a resurgence of climate skepticism in the U.S. government and a softening of environmental regulations in Europe, the stage seemed set for a downturn. However, the data tells a different story. Venture capital investments in climate and clean energy remained surprisingly stable compared to the previous year, according to CTVC, a testament to the sector's underlying strength.

Several factors contributed to this unexpected resilience. The undeniable and escalating threat of climate change continues to drive demand for sustainable solutions. More crucially, many climate technologies have reached a tipping point, becoming economically competitive, or even superior, to their fossil fuel counterparts. The dramatic cost reductions in solar, wind, and battery technologies have been particularly transformative, creating a powerful tailwind for the industry.

"We're seeing a fundamental shift in the economics of clean energy," explains Sarah Jones, partner at Green Innovations Fund. "Solar and wind are now often the cheapest sources of electricity, and battery storage is rapidly becoming more affordable. This is not just about doing good; it's about making smart investments."

This economic viability is attracting a new wave of investors who are less motivated by altruism and more by the potential for significant returns. Companies like Tesla, with its electric vehicles and energy storage solutions, have demonstrated the potential for climate tech to generate substantial profits.

However, the path to a sustainable future is not without its challenges. Not all climate technologies will follow the same trajectory as solar and wind. Some require significant technological breakthroughs or policy support to become commercially viable. Carbon capture and storage, for example, remains a costly and complex technology, although advancements are being made.

"Carbon capture is still in its early stages, but it has the potential to play a crucial role in decarbonizing heavy industries," says David Lee, managing director at Clean Future Ventures. "We need to see further innovation and cost reductions to make it a widespread solution."

Data centers, the backbone of the digital economy, continue to be a major focus for climate tech investors. These energy-intensive facilities are exploring innovative solutions to reduce their carbon footprint, including using renewable energy, improving energy efficiency, and developing new cooling technologies. Companies like Submer, which offers immersion cooling systems for data centers, are gaining traction as data center operators seek to minimize their environmental impact.

Looking ahead to 2026, investors are optimistic about the continued growth of climate tech, but they also acknowledge the need for strategic investments and supportive policies. "We need to focus on technologies that can scale rapidly and have a significant impact on emissions," says Maria Rodriguez, principal at Earth Capital. "That means investing in areas like energy storage, sustainable agriculture, and alternative materials."

The investors TechCrunch spoke with agree that the future of climate tech depends on a combination of technological innovation, supportive government policies, and a growing awareness of the economic benefits of sustainable solutions. While the political landscape may shift, the underlying drivers of climate change and the economic opportunities of clean energy are likely to remain strong, ensuring that climate tech continues to be a vibrant and dynamic sector in the years to come. The narrative has shifted from one of potential demise to one of cautious optimism, fueled by tangible progress and the unwavering commitment of innovators and investors alike.