According to BloombergNEF (BNEF) research, AI is taking funding away from clean technology as equity funders seek better returns.

Globally climate tech equity financing fell by 40 per cent in 2024, with nearly $51bn invested last year, compared to $84bn in 2023, in the third year of decreasing interest.

In part, clean technology is a victim of its own success, with China creating over-capacity in solar and storage, and making these areas less attractive and leaving harder to monetise areas and early stage ventures.

But, of course, it is the rise of a rival technology ibn the shape of AI that has significantly accelerated the shift, being something of ‘this year’s model’.

None-the-less, overall investment in the energy transition has risen to $2tr for the first time, according to BNEF.

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