Hard-to-abate industries like cement, steel, iron, and chemicals, are among the largest contributors to global greenhouse gas (GHG) emissions, accounting for 40% of total emissions. Despite their significant impact, these sectors have traditionally received less attention than energy and transport in Climate Tech financing efforts.
Achieving Net-Zero emissions in Industry requires substantial investment, with the steel sector alone requiring an additional USD 235-335 billion by 2050, and cement decarbonization needing up to USD 300 billion.
At Net Zero Insights, we track Climate Tech companies pioneering solutions to reduce emissions across cement and concrete, steel and iron, chemicals, mineral extraction, and other hard-to-abate industries. These innovations are essential for accelerating the shift toward low-emission industrial processes and ensuring long-term sustainability.
This article examines the investment landscape in Climate Tech and its critical role in industrial decarbonization, driving the transition to a more sustainable and resilient future.
Solutions across Industries
The Net-Zero transition in Industry—one of the most technologically and capital-intensive sectors—requires a comprehensive strategy to build and scale low-emission technologies. The Climate Tech Taxonomy provides a structured framework for categorizing solutions across key industries—such as materials, chemicals, extraction and mining, cement and concrete, iron and steel, and more.
Cement and Concrete
Cement production is responsible for 8% of global emissions, driven by energy-intensive processes such as manufacturing, grinding, and transportation. Decarbonizing this sector is critical to supporting sustainable construction practices and mitigating climate change.
To reduce carbon emissions, key strategies include switching to lower-carbon fuels during manufacturing and using non-carbonate sources for clinker production, among other initiatives.Â
Significant strides in Climate Tech are helping to reduce sectoral emissions. Innovations in green cement include alternative binding materials, low-emission clinker production, carbon capture and utilization (CCU), and concrete maturity monitoring. Additionally, advancements in hydrotechnical concrete and structural precast applications are shaping the future of sustainable cement production.
Notable startups to watch out in Cement and Concrete
Terra CO2 Technology has developed a scalable, low-carbon alternative to traditional Portland cement converting inexpensive and abundant feedstocks. In February 2025, the company raised $82M in Series B funding from investors including Breakthrough Energy Ventures, Eagle Materials, and Generation Investment Management.
C2CA Technology, a Dutch startup, upcycles waste concrete into sustainable building materials, replacing virgin aggregates, sand, and cement. In November 2024, they secured $10.6M in Series A funding from various investors.
MCi Carbon develops technology that accelerates mineral carbonation, transforming industrial COâ‚‚ emissions into solid materials. Their process combines captured COâ‚‚ with mineral feedstocks, including industrial waste to create cement, concrete, and other industrial products. In January 2025, MCi raised $5M in Series A funding from Mitsubishi Ube Cement Corporation.
Chemicals
The chemical manufacturing industry is one of the most energy-intensive sectors. The need for chemicals is driven by growing demand across multiple industries like agriculture, petrochemicals, pharmaceuticals, electronics, and more. As global industrial activity expands, alternative chemicals are crucial to minimize the environmental and health impacts of conventional chemicals. It can be achieved via biodegradable, non-toxic, and energy-efficient chemicals. Climate Tech innovations are making significant strides with technologies such as bio-based chemicals and lubricants, algal inks and paints, and alternative solvents.
Chemical companies that should be on your radar
Tidal Vision extracts chitosan from crustacean shells to create sustainable products for water treatment and agriculture. Their biopolymer coagulants improve water quality, while their agricultural solutions enhance crop growth and soil health. In January 2025, the company secured $172M in Series B funding from various investors.
Naturbeads develops biodegradable cellulose microbeads to replace microplastics in cosmetics, coatings, adhesives, and packaging. Their beads are 100% biodegradable and offer the same performance as plastic alternatives. In November 2024, they raised $9.95M in Series A funding from investors including Paragon Ventures, Mito Technology, and CDP Venture Capital.
Sironix Renewables replaces petroleum-based surfactants in cleaning and personal care products with plant-based alternatives like soy and algal oil. Their sustainable chemicals reduce environmental harm while maintaining high performance. In October 2024, Sironix raised $3M in Series A funding.
Extraction and Mining
The Net-Zero transition presents a paradox where key metals and minerals are essential for the clean energy transition. At the same time, their extraction is energy-intensive and contributes to GHG emissions, higher production costs, and increased waste volumes. This dual challenge highlights the need for sustainable mining practices to minimize the environmental impact of producing the very materials that enable a low-carbon future.
Our Sustainable Mining Solutions Stack provides a comprehensive overview of Climate Tech companies developing innovative solutions to tackle challenges across the mineral extraction supply chain—from responsible sourcing and extraction to material recycling. Here are some of the leading sustainable mining startups driving responsible mineral exploration, extraction, and trade to support a more sustainable and efficient energy transition.
Notable startups to watch out in Extraction and Mining
Phoenix Tailings extracts metals and rare earth elements from mining waste using zero-waste technology and clean energy. Their process eliminates hazardous chemicals, making metal production more sustainable. In December 2024, the company raised $43.8M in Series B funding from various investors.Â
Mangrove Lithium has developed an electrochemical process to efficiently produce high-purity battery-grade lithium hydroxide. Their technology works with diverse feedstocks, including brine, hard rock, and recycled batteries. In January 2025, they raised $35M in Series B funding from various investors.
Summit Nanotech, a Canadian company, offers Direct Lithium Extraction (DLE) technology, eliminating the need for evaporation ponds and chemical-based refineries. Their process efficiently extracts lithium from natural sources. In March 2025, they raised $25.5M in Series B funding from various investors.
Iron and Steel
Steel production is highly dependent on coal, primarily used as a reducing agent to extract iron from iron ore. Over the past decade, CO2 emissions from the iron and steel sector have increased, driven by rising steel demand due to population and economic growth.
The steel industry presents a significant opportunity for investment in deep decarbonization technologies. Promising Climate Tech innovations are emerging, but transitioning to alternate manufacturing techniques that rely less on coal and achieve substantial CO2 reductions is essential.
Innovative reductants offer potential replacements for coal in the reduction of iron ore. For example, electrolysis-, pyrolysis-, and torrefaction-based solutions use electricity, biomass, or waste materials to reduce carbon emissions. Additionally, advancements in blast furnaces, direct reduction processes, and steel decarbonization technologies are improving efficiency and reducing the industry’s environmental impact.
Further innovations, including steel 3D printing, slag valorization, scrap recycling, and advanced sorting techniques, are transforming how steel is produced, presenting investors with opportunities to support scalable solutions for a more sustainable and efficient steel sector.
Startups in Iron and Steel to watch
Electra is decarbonizing steel production by using an electrochemical process powered by renewable energy at just 60°C. This eliminates the need for coal and significantly lowers capital and energy costs. In January 2025, the company raised $180M in Series B funding.
Blastr Green Steel, a Norwegian company, produces steel using hydrogen instead of coal, reducing COâ‚‚ emissions across the value chain. Their process relies on direct reduction pellets and recycled scrap. In February 2025, they raised an undisclosed amount in Series A funding from investors including Onvest Oy, Cargill, Tesi, Security Trading Oy, Vanir Green Industries, and Aurora Infrastructure.
A Greener Future for Industry Powered by Climate Tech
Industrial decarbonization is one of the most complex yet urgent challenges in the Net-Zero economy. Achieving a low-carbon future in sectors such as steel, cement, chemicals, and mining requires rapid deployment of Climate Tech solutions, backed by substantial private capital and increased public sector support.
With comprehensive market intelligence on capital flows, emerging trends, and breakthrough innovations, leading investors and businesses can confidently navigate a rapidly evolving investment landscape and accelerate the transition to low-carbon industrial practices.
Interested in exploring our platform? Request a Demo today to gain exclusive insights into the latest trends and opportunities in industrial Climate Tech.Â
