New funding is aimed at a myriad of green power innovations.
The Clean Energy Finance Corporation (CEFC) has committed $15 million to Climate Tech Partners Fund I, backing early-stage climate technologies with the potential to cut emissions across energy, transport, and industrial sectors.
The investment, made via the Powering Australia Technology Fund, is intended to catalyse commercial-scale outcomes in an innovation market facing tightening capital conditions.
The fund targets companies with commercially viable technologies capable of rapid emissions reductions at scale.
It spans sectors including next-generation grids, sustainable fuels, and electrification – areas currently aligned with both corporate decarbonisation goals and Australia’s long-term climate targets.
While the CEFC emphasises commercial scaling and exposure to market competition, this investment comes amid a global downturn in growth-stage funding.
According to the IEA’s State of Energy Innovation report, venture capital for growth-stage climate tech fell by 23 per cent in 2024. Start-ups with high capex demonstration projects were particularly affected, with financing concentrated in North America, Europe, and China.
The Fund’s structure includes close collaboration with end users, aiming to de-risk investments and compress time-to-market through prototyping and manufacturing support.
“This investment supports the advancement of technology essential to Australia’s climate transition – including rapid prototyping, manufacturing, and exposure to market competition,” said CEFC Head of Growth Capital Malcolm Thornton.
The IEA estimates that 35 per cent of the emissions reductions required to reach net zero by 2050 depend on technologies not yet proven at commercial scale.
Australia’s targeted support for early-stage companies may help close that gap, particularly if coupled with improved access to demonstration funding and infrastructure.
“We’re seeing a wave of breakthrough climate tech—electrification, sustainable fuels, next gen grids – gaining real traction,” said Climate Tech Partners Co-Founder Patrick Sieb.
“With tech readiness, corporate demand, and policy aligning, it’s a powerful moment to invest.”
The CEFC’s backing also signals confidence in the Fund’s venture model, which taps into existing corporate demand to guide capital allocation. This approach aligns with recent IEA calls to tailor support mechanisms to the unique innovation and scale-up needs of each sector.