The Investors Financing Industrial Decarbonization

Venture capital firms, corporate investors, government agencies, and banks are accelerating the adoption of Climate Tech in heavy industry by funding technologies that enable cleaner manufacturing.

 

Decarbonizing hard-to-abate sectors demands significant capital, long-term commitment, and strategic innovation—making these investors critical to scaling solutions. This article builds on our previous analysis of Climate Tech shaping the Net-Zero transition in Industry, highlighting the most active funders driving industrial decarbonization forward.

 

Five Most Active VC Investors

 

These are some of the prominent venture capital firms advancing the decarbonization of hard-to-abate industries.

 

• Breakthrough Energy Ventures: A US-based impact investment firm focused on clean energy and Climate Tech solutions. With over 100 deals closed across seed to later-stage companies, the firm is committed to supporting innovations that drive the transition to a low-carbon economy.
• SOSV: A global venture capital firm with a keen interest in the critical minerals value chain from exploration, and extraction to processing. SOSV has made over 70 investments, primarily in seed-stage companies, followed by Accelerators/Incubators and late-stage ventures.
• HTGF (High-Tech Gründerfonds): A German-based venture capital firm supporting companies that decarbonize industries. They have made 57 investments across seed, early, and late-stage companies, with a few investments in growth equity.
• Climate Capital: A US-based Climate Tech investor with an interest in low-emissions technologies has closed more than 40 deals in early stage companies.
• Lowercarbon Capital: An investment firm funding breakthrough technologies that cut GHG emissions across sectors. In the Industry vertical, they have closed nearly 40 deals, primarily in early-stage companies.

 

Five Most Active CVC Investors

 

These corporate venture capital firms are actively supporting innovation in decarbonizing hard-to-abate industries.

 

• Chevron: A leading integrated energy company focused on carbon emissions reductions in hard-to-abate industries. Chevron has invested in over 40 deals across the industry vertical, spanning early to late-stage companies, including select grants.
  
• Shell: A British multinational oil and gas giant supports the development of Climate Tech solutions to reduce emissions in Industry. Shell has closed nearly 30 deals, investing in Accelerators/Incubators, acquisitions, and companies across early to late stages.
  
• BHP Group: A global resources company fostering emerging Climate Tech startups. BHP has invested in nearly 20 deals, primarily in seed to early-stage companies and Accelerators/Incubators.
• Amazon: The American multinational technology giant has been expanding its investments in Climate Tech, closing approximately 20 deals focused on seed to early-stage companies and Accelerators/Incubators.
• Intel Corporation: A US-based technology leader committed to accelerating Climate Tech innovation. Intel has invested in around 20 deals, primarily in seed to early-stage companies and Accelerators/Incubators.

 

Five Most Active Government Agencies

 

These government agencies are leading the charge in financing low-carbon industrial production mainly through grants.

 

• U.S. Department of Energy (DOE): A key player in industrial decarbonization, the DOE has invested in over 800 deals, primarily through grants, providing essential public funding to accelerate Climate Tech innovation and project deployment.
• UK Research and Innovation (UKRI): Focused on business-led innovation and research-driven solutions, UKRI has awarded more than 600 grants, alongside select debt financing and seed capital investments.
• European Commission Fund: An early-stage venture capital fund managed by the European Commission, targeting low-carbon technologies to support climate neutrality. The fund has invested in nearly 500 deals, mainly through grants, with additional support for Accelerators/Incubators.
• National Science Foundation (NSF): A leading independent federal agency committed to advancing scalable Climate Tech solutions. The NSF has provided over 350 grants across various industries.
• U.S. Department of Defense (DoD): Actively funding Climate Tech innovations that bridge the gap between early-stage development and large-scale production. The DoD has closed over 300 deals, primarily through grants.

 

Five Most Active Banks

 

These financial institutions are actively investing in low-carbon technologies and supporting infrastructure to reduce emissions in Industry.

 

• Banco Santander: A Spanish multinational financial services company providing debt, grants, and equity financing to startups from early to late stages. The bank has participated in 10 deals supporting emerging Climate Tech solutions in industrial decarbonization.
• The Scottish National Investment Bank: A development bank focused on fostering a sustainable economy through long-term investments in businesses and projects addressing the climate crisis. It has invested in nearly 10 deals across early and late-stage companies.
• HSBC: A British bank and financial services group actively financing Climate Tech companies across energy, industry, and other sectors. HSBC has closed approximately 10 deals across debt financing, post-IPOs, grants, and early-stage investments.
• DBS Bank: A Singapore-based multinational banking and financial services firm supporting Climate Tech innovations. The bank has participated in six deals, offering grants, debt financing, and early-stage venture capital.
• Zürcher Kantonalbank: A Swiss commercial bank investing in high-potential Climate Tech companies focused on lowering emissions in Industry. The bank has funded six companies across early to late-stage investments.

 

Investors Drive the Industrial Decarbonization’s Next Growth Phase

Heavy industries represent one of the largest and most challenging fronts in the climate transition—but also one of the most promising investment opportunities. With billions already deployed and policy support accelerating, Climate Tech solutions are advancing rapidly to transform industrial processes and cut emissions at scale.

To stay ahead in this fast-moving space, investors must navigate shifting policy landscapes, evolving funding dynamics, and emerging technologies. Our market intelligence platform equips investors and businesses with real-time data on key players, funding trends, and high-impact opportunities—ensuring you’re always one step ahead.

Want to explore the future of industrial decarbonization landscape? Request a demo to discover how our platform can help you uncover exclusive insights.