This year will be a formative one for climate tech investors, after a surprising—and at times, unsettled—2025, says an op-ed by Bloomberg.
President Donald Trump’s tax bill has cut support for many green technologies, but it’s also provided clarity for investors. Coupled with the Fed’s recent interest rate cuts, climate tech backers are planning to write more checks in 2026. They also have a clear idea of where to place their bets.
Trump’s policies, the rise of artificial intelligence and electrification — all trends that influenced the 2025 investment landscape — will again hold sway over 2026. Startups looking for funding will also have to make a strong business case that goes well beyond cutting carbon.
“The bar for climate tech investment is higher than ever before,” said Sean O’Sullivan, founder and managing partner at SOSV, one of the most active venture capitalists in the sector. “Emissions reduction is not sufficient to justify investment.”
Read the column further here.
