Israel’s climate tech industry is showing surprising strength in the face of war and global economic uncertainty, according to a report released earlier this week by the Israel Innovation Authority and PLANETech.
CLIMATE TECH
(ILTV )
The 2024–2025 Climate Tech Status Report found that despite a 39% drop in investment—from $1 billion in 2023 to $613 million in 2024—the sector remains robust, with 946 active companies, including 49 new startups launched since mid-2023.
International investors continued to back Israeli climate ventures, participating in over 90% of funding rounds. Public investment also hit a record, with the Innovation Authority allocating $105 million to climate tech in 2024 alone. Meanwhile, Israeli companies secured 105 million euros in European Union grants between 2021 and 2023.
The report notes that more than half of the companies are still in early funding stages, signaling future growth. Leaders say the sector’s resilience highlights its strategic importance, with the potential to help shape a global climate innovation economy projected to reach $2 trillion by 2030.