Climate Technology and Renewable Energy to Have Bumper 2025

2025 is already on track to be the year that takes climate technology by storm.
Someone who throws his weight behind this belief is Andrew Beebe, Managing Director at Obvious Ventures and a recognised leading climate tech VC.
Evan Williams, the Co-Founder of Twitter, established Obvious Ventures in 2014 as a venture capital firm focused on investing in world positive companies.
The firm has made significant investments across sustainable systems, healthy living and people power, with notable portfolio successes including Beyond Meat, Recursion Pharmaceuticals and supplement maker Olly.
Andrew spearheads investments in decarbonisation and renewable energy, with a portfolio featuring notable exits such as Proterra, acquired by Volvo, Inspire, acquired by Shell, Amply, acquired by bp and geothermal innovator Zanskar.
He anticipates renewables overtaking fossil fuels in baseload capacity, AI boosting renewable system reliability and breakthroughs in geothermal technology unlocking vast untapped energy resources.
This aligns with the global energy sector's dramatic transformation, driven by the mounting urgency to combat climate change.
What does 2025 have in store for climate tech and renewable energy?
Andrew and Obvious Ventures believe that innovations in generative science are driving profound changes in renewable generation, transmission technologies and data-driven user incentives that will ripple across industries.
“The numbers tell the story,” Andrew says. “The International Energy Agency (IEA) projected that investments in cleantech and infrastructure will hit US$2tn in 2024, roughly double the investment in fossil fuels.
“The US slice of this global sum is small — just 15% — but is growing sharply thanks to major incentives in the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.
“We are especially enthused about geothermal energy. Despite renewables like wind and solar reaching relatively large scale and low cost, neither has proven capable of providing the comparable baseload capacity of coal, oil, and gas.
“New leaps in geothermal energy are unlocking vast new energy deposits in the earth’s crust, and generative AI technologies are making them more accessible than ever before.”
Andrew puts forward a selection of predictions for the year ahead, which include:
- Clean energy will finally leap past fossil fuels. “The era of fossil fuels dominating the energy sector is drawing to a close. Solar, wind, geothermal and hydropower are poised to overtake fossil fuels in baseload capacity, global efficiency and declining costs. New technologies are unlocking vast new deposits of clean energy and powering leaps in traditionally slow research quests like nuclear fusion.”
- Advances in battery chemistries will rewire industries. “Breakthroughs in battery technology are transforming the landscape of energy storage and consumption. New chemistries like solid-state lithium and synthetic silicon batteries promise greater energy density, faster charging times and longer lifespans. These advancements are crucial for the scalability of distributed renewable energy, enabling industries to reduce their dependence on the grid significantly.”
- Carbon removal will hit overdrive. “Technologies for carbon capture and sequestration are rapidly advancing. Innovations in direct air capture and bioenergy with carbon capture and storage are scaling up. Both are making it possible to remove and store carbon dioxide far more efficiently and for the world to meet broad climate targets.”
- Agriculture will transform from top to bottom. “Farming is undergoing a clean energy revolution. Renewable energy-powered machinery and precision data-driven farming techniques are breathing sustainability into a historically carbon-heavy industry. Innovations in vertical farming and lab-grown foods are also emerging, reducing the carbon footprint of food production and increasing food security.”
- AI will take the guesswork out of risk analysis. “Advanced algorithms and machine learning models can predict equipment failures, optimise maintenance schedules and improve energy efficiency. By leveraging AI, businesses will be able to make more informed decisions, enhancing the reliability and resilience of renewable energy systems and reducing operational uncertainties.”
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