ESG & Investing

Climate Finance Funds Attract Record Inflows in ‘Feast or Famine’ Year

Investors are moving toward supporting deployment-ready technologies, especially in the energy sector.

Investors are flocking to technologies that can add new sources of power to the grid.

Photographer: Sam Wolfe/Bloomberg

The global climate finance landscape reached a milestone in 2025, with 179 investment funds raising a record $92 billion, according to a report by market research firm Sightline Climate.

The total marks a doubling from 2024, the report said. However, behind the headline growth is a big shift, with investors moving away from riskier early-stage bets toward infrastructure supporting commercially viable technologies.