Australia’s local weather tech sector now employs greater than 7,000 folks throughout greater than 730 startups and scaleups, which attracted $680 million in enterprise funding in 2025.
The evaluation of native sector and its momentum and development characteristic within the 2025 Australian Local weather Tech Business Report, launched as we speak by Local weather Salad founder Mick Liubinskas.
“This report is full of optimism. After years of hard work, these climate solutions are ready to scale,” he stated.
“With even the briefest have a look at this {industry}, it’s clear that the power, sustainability and nature constructive {industry} has pushed well beyond inexperienced premiums and straight into financial profit.
“We’ve been racing disastrous tipping points and with the strength in this report, it’s starting to look like we might just save ourselves.”
This 12 months’s report spoke with 80 corporations and 37 sustainability champions to get their view on the state of play in local weather tech.
It paints an image of elevated capital funding and quickly scaling corporations, alongside world consideration and expertise within the Australian ecosystem at a time when authorities coverage has begun to show favourably in the direction of local weather tech.
Wednesday’s ASX itemizing of seven-year-old Tasmanian scaleup Sea Forest, which makes use of seaweed to cut back livestock methane emissions, which noticed its share value pop greater than 20% on its opening day of commerce suggests the general public urge for food for investing in local weather tech can also be sturdy.
Unbelievable alternative
Liubinskas believes there’s additionally “unbelievable opportunity” in a spread of options, from inexperienced metal and important minerals to residence electrification and AI-powered agriculture, with Australian local weather tech corporations more and more delivering improvements the world needs.
“There’s excitement. It’s not hype, it’s earned optimism,” he says within the introduction to the report, describing local weather tech at scale as a workforce sport.
“Yes, it’s tough. Yes, there’s risk. But this industry is full of people who choose action, who build even when the path is unclear, and who know that climate tech isn’t just a sector. Yes, it’s a rollercoaster, and, at times, it kinda feels like a rom-com. But it’s also a mission.”
The decision to motion in more and more aggressive world markets is rolling out public funding quicker to guide, and safe financial development. Development in inexperienced jobs additionally must be matched by a serious funding in sustainability abilities improvement.
Local weather tech by sector. Supply: 2025 Australian Local weather Tech Business Report
The 61-page evaluation lists 49 local weather tech gamers with the potential for unicorn standing – a $1 billion valuation – with identify already producing greater than $10 million in income and/or world prospects
They embrace Brighte, MGA Thermal, SunDrive, Xefco, Amber Electrical, Samsara Eco, and JET Cost.
Malcolm Thornton, head of development capital on the federal government-backed Clear Power Finance Company, labelled the momentum “highly encouraging” amid a broad deal with attaining Australia’s web zero targets.
“The transition to a net zero economy is creating exciting opportunities for new technologies and business models, demanding rapid innovation and the acceleration of commercialisation. There’s a real need for specialist risk capital to scale up these enterprises as they drive emissions reduction,” he stated.
“Climate tech investments from the CEFC span direct equity and fund investments, with commitments typically ranging from $5 million to $30 million. Investments are made across all sectors of the economy, including the built environment, energy, transport, industry and natural capital.”
$1.3bn in new funding
The report recognized $10 billion in new public funding coming on-line within the final 18 months from the likes of the Future Made in Australia, ARENA, and the Nationwide Reconstruction Fund, amid $164 billion in potential funding. The non-public VC funds elevated their capital pool by $310 million – nearly 50% – amid $957m for local weather tech. Main that pack was Wollemi Capital, with $230 million dedicated by REST Tremendous for a brand new fund.
Private and non-private local weather tech funding. Supply: 2025 Australian Local weather Tech Business Report
However benchmarking native funding towards world capital, the Local weather Tech Business Report concluded that Australia is under-investing primarily based on GDP and our property. Power, largely renewables; and meals/land, largely proteins, lead funding, and knowledge centre sustainability is predicted to develop rapidly over the subsequent 5 years, however storage lacks funding regardless of the nation’s aggressive benefit.
Different sectors the place underinvestment was recognized embrace meals waste, aviation, marine, HVAC (heating and aircon) and regenerative agriculture.
Emissions discount or removing represents 51% of the affect by local weather tech corporations. Surprisingly, asking founders about their affect, 18% reported no affect metrics in any respect , which Local weather Salad describes as a missed alternative for credibility, funding, and alignment with rising local weather reporting requirements.
Startup affect. Supply: 2025 Australian Local weather Tech Business Report
Dr Jehan Kanga, founding father of hydrogen storage startup Rux Power, stated the clear tech {industry} is going through funding headwinds attributable to delays in delivering local weather insurance policies throughout key world jurisdictions – a reference most definitely to the US and dramatic about face in insurance policies by new US president Donald Trump’s administration.
“However, the fundamentals are very strong with many technologies delivering significant cost savings. Cost competitiveness with fossil fuel is here. India and China know it, and they are doubling down and giga-scaling,” he stated.
Australia’s strategic alternative is double down ourselves, kind worldwide partnerships to catapult market entry, and proceed to supply (each governmental and personal) funding to Australian clear and deep techs to allow world market seize at this important second of change. The result shall be distinctive returns on funding, and the emergence of the Australian local weather tech giants, as our clear options displace fossil fuels all world wide.”
AI’s affect
Synthetic intelligence is seen as enjoying a key position as {industry} appears to transition to cut back and account for carbon footprint and power consumption.
Futurist Mark Pesce from One Billion Seconds stated whereas AI is enhancing in effectivity, the power calls for of knowledge centres at present outstrips any good points.
“Despite these immediate environmental costs, AI looks to become an essential tool for accelerating the path to a climate-positive future, necessary to handle the complexity of the climate crisis, citing its ability to optimise energy usage in real-time, accelerate material science breakthroughs for batteries and carbon capture, and assist businesses in navigating complex sustainability reporting,” he stated.
“Ultimately, while AI currently adds to the global carbon burden, it functions as a necessary investment that will speed up the technological convergence required to solve climate change in the long run.”
Inexperienced jobs
In relation to jobs, world demand for inexperienced abilities is rising at twice the tempo of inexperienced expertise available in the market, and greater than half of all inexperienced hires happen in non-green job titles, signalling that sustainability data is more and more important throughout mainstream roles in operations, manufacturing, provide chain and finance.
Employees with inexperienced abilities are additionally considerably extra aggressive, with a hiring charge practically 47% above the worldwide common.
In Australia, inexperienced hiring has grown steadily (5.8% CAGR from 2021–2025), though that trails different key markets, which suggests a widening functionality hole because the nation accelerates funding in renewables, electrification and clean-industry development.
You possibly can learn the total Local weather Salad report right here.
The position of tech for inexperienced abilities. Supply: 2025 Australian Local weather Tech Business Report
