The Rise of Climate Tech Startups

May 14, 2025
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Aria Fernwood

Climate change is no longer just a political issue — it's a startup opportunity. In the past five years, climate tech has become one of the fastest-growing sectors in venture capital, attracting billions in funding and talent from across the globe.

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From decarbonisation to regenerative agriculture, a new wave of founders is working on practical, scalable solutions to our planet’s most urgent problems.

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Here are five standout startups — and the bold founders behind them — that are driving the green revolution forward.

1. Charm Industrial – Turning Plant Waste into Carbon Storage

Founder: Peter Reinhardt (former Segment CEO)
What they do: Charm converts biomass into a carbon-rich liquid and injects it underground, permanently storing carbon.
Why it matters: It’s one of the few solutions that offers measurable, permanent carbon removal.

2. Heirloom – Accelerating Natural Carbon Capture

Founders: Shashank Samala, Noah McQueen
What they do: Heirloom uses minerals to absorb CO₂ from the air, speeding up a natural process known as mineralization.
Impact: Their goal is to remove 1 billion tons of CO₂ by 2035.

3. Plenty – Reinventing Agriculture with Vertical Farming

Founder: Matt Barnard
What they do: Plenty builds indoor vertical farms using AI and robotics to grow crops sustainably, using 95% less water and zero pesticides.
Why it’s innovative: It brings fresh food closer to urban centres with minimal footprint.

4. Twelve – Turning CO₂ into Products

Founders: Nicholas Flanders, Etosha Cave, Kendra Kuhl
What they do: Twelve uses electrochemical reactors to transform CO₂ into everyday materials — like jet fuel, sunglasses, and car parts.
Vision: Replace fossil fuel-based production with air-based alternatives.

5. Watershed – Helping Businesses Go Carbon Neutral

Founder: Taylor Francis, Christian Anderson, and John Sargent
What they do: A carbon accounting platform that helps companies like Shopify, Airbnb, and Stripe measure and reduce emissions.
Strength: Combines data automation with actionable climate insights.

Why Now?

  • Investor momentum: Over $70B invested in climate tech between 2020 and 2023.
  • Policy support: Climate-related legislation and incentives are growing globally.
  • Talent shift: Top engineers and designers are leaving Big Tech to build for the planet.

Climate tech is no longer a niche. It's a global movement backed by capital, policy, and innovation.

The Road Ahead

As the climate crisis intensifies, we need both systemic policy changes and breakthrough technologies. These startups represent just a slice of what’s possible when bold ideas meet real urgency.

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The next decade won’t be won by hope alone. It’ll be led by builders.

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And climate tech is where they’re heading.

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