We’ve all felt the sting of disappointment. Your basketball team loses in the finals. Your favorite restaurant runs out of the dish you’ve been craving all day. You put hours into a promising new business proposal, only for the opportunity to fall through.
It’s frustrating, but setbacks often come with silver linings. There’s always next season, another chance to try the restaurant, or new prospects waiting on the horizon.
But what happens when the stakes are higher? When the failure to achieve a critical goal means more than a personal letdown — it threatens the very foundation of your work?
Imagine your technology fails to get the certification needed to hit the market, putting your startup’s survival in jeopardy. Or the policy you’d counted on to support your market entry doesn’t pass, leaving you to face an uphill battle.
Or, how about the world’s biggest economy pulling back from collective climate action?
Facing a New Reality
For innovators around the globe, the shifting priorities of the US Federal government vis-à-vis climate action struck a blow. Policies like withdrawing from the Paris Agreement (again), reducing investments in clean energy infrastructure, and pivoting back to fossil fuels have left many in the climate sector on edge.
But these challenges are a call for resilience and persistence. For the climate tech sector, this isn’t just about political setbacks — it’s about reimagining its role in a world where change is constant, risks are high, and opportunities are emerging in unexpected places.
The question isn’t whether climate action will continue; it’s about who will lead it and where innovation can make the greatest impact.
We are entering a new reality. Whether that reality is good or bad is a matter or perspective and priorities — completely subjective.
What is clear is that the world is facing new challenges related to climate –more destructive and unpredictable wildfires, increased desertification, more plastic littering the environment and entering our food systems and our bodies, and biodiversity at risk from all manner of pollution. Our natural ecosystems are out of balance and we see the impact — wildfires, floods and excessive heat.
To put it differently, we are faced with a serious set of unmet needs. And when there are unmet needs, there is an opportunity for innovation. And very few do innovation better than Israel — a testing ground for climate innovations for decades.
Global Climate Action Will Continue to Set the Course
Even as the US Federal government reconsiders its role in global climate action, the momentum hasn’t stopped. Instead, leadership has diversified. States, nations, corporations and individuals are stepping up, creating a dynamic environment where businesses must adapt and pivot to new opportunities.
For instance, The United States Climate Alliance — a group of 24 bi-partisan governors representing 60% of the US economy, have made clear that climate action will continue in the United States, albeit, state-led. Former mayor of New York City, and billionaire philanthropist Michael Bloomberg, has committed, together with other US climate donors, to help cover the United States’ financial commitments to the United Nations Framework Convention on Climate Change.
The US Isn’t the Only Player in the Game
The European Union continues to exhibit strong leadership in transitioning its economy. Policies including the Carbon Border Adjustment Mechanism (CBAM) and the EU’s Green Deal will put Europe on track to be the first climate-neutral continent by 2050.
China has become a world leader in solar energy, and a leading producer of wind turbines and electric vehicles, driving the global shift to clean energy. The country is investing in its green infrastructure, aiming to reach carbon neutrality by 2060.
For climate innovators in general, and Israeli entrepreneurs specifically, understanding how to do business in these markets will be essential in the coming years. Climatetech companies should dedicate some resources to understanding these markets of opportunity.
The Resilience of Climate Investors: US, EU and Israel
Despite some big players pulling back, and investment in climate tech trending down, many investors see the sector as a critical component of a diverse portfolio, not just because it’s good for the planet, but because it makes business sense.
The overall climate investment ecosystem is strong. Breakthrough Energy Venture, founded by Bill Gates, has not slowed on its commitment to reach Net Zero by 2050, raising an $839M fund in August 2024. AllianzGI and the European Investment Bank just raised €450M for climate action in emerging markets. A slew of early-stage VCs are ready to invest in the next climate dream.
Israeli investors, too, have shown confidence in the climatetech sector, backing technologies that promise to reshape the future of climate action. Firms like Ibex Investors, E44 Ventures, Jibe Ventures, and iKare Innovation continue to invest in new climatetech solutions in clean energy, sustainable farming, carbon capture and water conservation, from early-stage through scale-up and beyond, demonstrating a commitment to both financial returns and global environmental impact.
These Israeli investors are helping bridge the gap between innovation and global markets, positioning Israel as a leader in climatetech solutions, even as some US-based companies face increasing political and regulatory uncertainty.
Why We Need to Double Down on ClimateTech Investment
No matter who is in power, people still need access to clean water, healthy and sustainable food sources, clean air, and safely manufactured products. It’s not only the health of the planet that is at stake but human health as well.
Moreover, unlike solutions of the clean tech past that carried too high a “green premium,” today’s climatetech players understand that to make it, they must have a bullet proof business case. They have to be competitive with the conventional, overwhelmingly fit with existing infrastructures, and as much as possible, not ask people to change their behavior too much, at least in the short term.
The Role of Communications in Navigating Today’s Market
Amid the maelstrom of shifting political, economic, and regulatory conditions, resilience isn’t just about innovation — it’s about effective storytelling. Climatetech companies must do more than develop cutting-edge solutions; they must connect these innovations to the world’s most pressing challenges in a way that inspires action and outline societal and economic value.
Communication is the bridge that connects innovators with investors, policymakers, and communities. It’s what transforms a technology into a must-have solution and builds the trust needed to secure partnerships, investments, and market adoption.
The narrative must be bold, credible, and universal — showing how technology addresses unmet needs, meets the moment of climate urgency, and drives systemic change. By crafting and sharing compelling stories, climatetech leaders can position themselves not just as participants in the climate movement but as indispensable drivers of its success.
