Climate tech deals with technology that combats climate change by reducing global greenhouse gas emissions.

“Carbon tech” is subset of climate tech that focuses specifically on carbon dioxide emissions reduction or conversion. Another closely related term is “Clean tech”, which refers to technologies that offer renewable energy and environmentally friendly alternatives to existing technologies to limit environmental effects. Clean tech addresses soil, water and air pollution caused by dirty technologies, such as coal, gas, oil, mining, transportation and manufacturing.

The chart below shows the landscape of venture investment in climate tech. (Source: RMI Analysis, 2020)

Abbreviations: DERs = Distributed Energy Resources; CCUS = Carbon Capture, Utilization, and Storage; HVAC = Heating, Ventilation, and Air Conditioning; HVDC = High Voltage Direct Current