The Capital Challenge: Financing Frontier Climate Solutions

Global investment in clean energy and climate technologies reached a record $2.1 trillion in 2024. Yet nearly 90% of this capital flowed into mature, proven solutions, leaving frontier technologies such as carbon removal, green hydrogen and advanced materials significantly underfunded and struggling to scale.

Bridging this gap will require clearer policy frameworks, stronger demand signals and new financing models capable of managing risk and mobilising capital.

• With capital largely concentrated in mature technologies, how can we unlock funding for first-of-a-kind (FOAK) and early-stage climate innovations?
• What role should corporate buyers, offtake agreements and advance market commitments play in creating demand for emerging solutions?
• How can policymakers help de-risk investment and crowd in private capital for frontier technologies?