As the climate crisis intensifies, new climate tech startups and innovations are emerging every day with breakthrough technologies in electric mobility, clean energy, energy storage, carbon capture, and the circular economy. The climate tech sector has an annual growth rate of 4.33% and currently employs over 2.8 million people, according to the StartUs Insights Climate Tech Market Report.
While that’s great progress, climate technology adoption isn’t growing at the same pace. According to a report by the Association of Chartered Certified Accountants (ACCA), 66% of organizations view climate tech as critical to their immediate operations, but only 21% of organizations have actively allocated existing budget funds to deploy and adopt these technologies. So, why is adoption lagging?
In this guide, we pull back the curtain on why climate tech adoption is moving slower than innovation, and what innovators can do to bridge the gap.
Climate innovation is moving faster than ever
According to Fortune Business Insights, “the global climate tech market was valued at $31.45 billion in 2025,” with projections indicating it will reach $209.48 billion by 2034. The growth potential is already apparent in the many inventions across climate tech companies:
Watershed has transitioned from a carbon-accounting solution into an environmental intelligence platform that can pinpoint global emissions hotspots with deeper granularity.
Sweep, a sustainability data platform, integrated generative AI into its climate solution to streamline carbon accounting and environmental, social, and governance (ESG) reporting.
Climeworks recently launched a Direct Air Capture (DAC) technology innovation center in Switzerland to support its carbon removal efforts.
Heirloom has developed technology that combines DAC with carbon mineralization to reduce carbon-removal costs.
Agreena is pushing the regenerative agriculture movement by combining remote sensing and machine learning to facilitate in-field monitoring and make it easier for farmers to access carbon markets.
These developments are driven by growing investments in climate innovation. According to Silicon Valley Bank’s Future of Climate Tech 2026 report, climate tech venture capital (VC) investment in the US reached $29 billion in 2025. That’s the third-largest investment figure recorded.
As investments continue to grow, we’re seeing new startups and advanced technologies are entering the market. Unfortunately, having capable solutions doesn’t always translate into higher adoption, a reality clearly seen in the climate tech sector.
Most climate technologies are competing against the status quo
One of the biggest misconceptions is that climate technologies primarily compete against other similar alternatives. The truth is, their primary competitor is existing systems.
An MRV platform might track greenhouse gas (GHG) emissions more accurately than spreadsheets, but a company would stick with the latter because that’s what employees know. In many cases, the biggest hindrance to climate tech adoption is organizations’ ways of doing things. Here’s why stakeholders often default to what they already know:
Security in familiarity
Switching from existing technologies is challenging because employees are already familiar with how they work, and internal workflows are built around them. To make the switch, organizations need to buy new climate tech, conduct employee training, and restructure their workflows — things management and employees might resist.
New costs
Climate tech adoption requires organizations to invest in new solutions, data migration, employee retraining, and operations redesign. For example, agribusiness organizations might need to invest in agtech solutions such as MRV systems and incorporate digital logs into their processes, all of which require additional spending.
Unfortunately, the costs of climate tech adoption are often immediate, while the benefits might take months or years to materialize. As this contributor in a Reddit thread on regenerative agriculture adoption notes, “Farmers run on hair-thin margins, they can't afford to switch.”
The thing is, once you start 'traditional farming' with herbicides, pesticides, and fertilizers, you're pretty well locked in. It takes years to undo, and you will lose money until the regenerative practices make up the difference. Farmers run on hair-thin margins, they can't afford to switch. The USDA funds available for 'regenerative agriculture' are low, payable after the fact, subject to withdrawal, and involve punitive red tape. What we need is to convince the larger farms to trial a portion of their setup - mitigate the risk. Reduce the risk and the red tape. Convince banks to give loans for regen ag. |
|---|
Existing contracts
Some organizations are hesitant to adopt climate technology because they’re locked into contracts with other providers. For example, a company with a multi-year agreement with a legacy supply chain platform might be unwilling to transition to a climate solution that offers superior emissions tracking and AI-powered route planning to avoid breaching their contract.
Adoption is often a risk problem, not a technology problem
According to a global survey conducted by the Global Association of Risk Professionals (GARP), while firms are rapidly building out sustainability frameworks, deep operational anxieties remain. Their research shows that 82% of risk professionals cite data availability and 72% cite the reliability of technology models as their greatest short-term concerns. Despite understanding the long-term impact of climate solutions, many companies have yet to invest in these technologies because they introduce immediate systemic uncertainty. Sustainability adoption requires organizations to accept the following risks:
Operational: Migrating to new technologies might disrupt existing operations. For example, you might need to temporarily slow down supplier onboarding when integrating a carbon platform with your current enterprise resource planning (ERP) software.
Financial: According to a University of Chicago Sustainability Dialogue report, “corporate buyers may not commit to an off-take agreement until a technology is proven at scale.” Unfortunately, some technologies deliver results in the long term, making capital expenditure difficult to justify.
Transition: Employees might be unable or unwilling to use new technologies, especially if they believe existing systems work just fine.
Reporting: Some new technologies might be susceptible to data inaccuracies and audit failures.
Procurement: Some climate tech vendors may be unable to meet organizations’ scaling, security, and long-term partnership requirements, especially if they’re in their early stages of growth.
These risks can make it difficult for management to buy into climate tech adoption, even when a solution’s benefits seem obvious. Until organizations find ways to deal with the unknowns of new technology, adoption might continue to lag behind innovation.
Regulation is reshaping climate technology adoption
While the cards may appear to be stacked against climate tech implementation, some aren’t. One of the strongest drivers of tech adoption is regulations such as the Corporate Sustainability Reporting Directive (CSRD).
The CSRD requires companies in Europe to report on their sustainability practices using standardized reporting frameworks. To comply with this regulation, organizations must track complex Scope 1, 2, and 3 emissions, monitor their vendors’ carbon footprints, and disclose their short- and long-term emission-reduction targets. These requirements have led many to invest in ESG data collection solutions, carbon accounting software, supply chain tracking tools, and decarbonization technologies.
Strict sustainable procurement directives, such as the Corporate Sustainability Due Diligence Directive (CSDDD), are also pushing climate technology scale-ups. The CSDDD requires companies to mitigate environmental impacts across their value chains. To comply, organizations need to lean on climate tech that provides complete supply chain visibility and traceability.
As sustainability reporting regulations continue to evolve, organizations may become even more open to adopting climate technologies.
The companies that win understand adoption
Climate tech companies that get organizations to buy into their products treat adoption as a strategic discipline, giving it as much attention as they do innovation. These companies invest in the following:
Buyer understanding
Climate tech innovators, sustainability leaders, and enterprise buyers have varying needs and priorities. An innovator will likely be interested in a technology’s technical capabilities, a sustainability leader in carbon reductions, and an enterprise buyer in the actual business outcomes a solution can provide.
The key to positioning your product effectively is understanding your target audience’s priorities. As Jamil Wyne, a climate technology advisor and contributor for Forbes, puts it, “Any company that is successful in not simply building a competitive climate tech product but getting it into the market will need to know the ins and outs of their target customer and industry.”
Market education
While climate tech is typically easy to understand within climate circles, it might be complex for enterprise buyers and organizational decision-makers. That makes market education vital. Publish climate tech content, host webinars, and share educational pieces with potential buyers, making sure to break down complex terms and highlight how your solutions solve current business challenges.
Value-focused communication
Companies that successfully drive climate tech adoption know to prioritize business value when selling technologies to decision-makers. Rather than focusing on your tech’s climate benefits, communicate the business outcomes it can deliver, such as better regulatory compliance, improved reporting accuracy, and a stronger competitive advantage — at least when speaking to business leaders.
Implementation support
Some organizations are hesitant to adopt climate tech because of transition risks. To win such buyers, reduce implementation challenges by helping with integrations, employee training, and data migration.
The next climate tech winners will be adoption leaders
Climate tech innovation sets you up for success, but adoption is what actually achieves it. The good news is that government incentives and regulations are driving adoption across multiple sectors.
However, you still need to do your part. Invest in climate technology adoption through initiatives such as buyer education and implementation support as much as you do in innovation to drive companies to transition to your solutions.
Oaklyth can help your climate tech adoption efforts by creating search-driven content that not only positions you for better online visibility but also highlights your products’ value to different stakeholders.
Schedule a call with Oaklyth today to learn how we can support your climate tech education and communication efforts.
