ClimateTech, Energy and Sustainability Startups in Germany, Austria, and Switzerland

Jörn Menninger
5 days ago
8 min read

Updated: 6 hours ago

Climate technology has become the largest venture capital category in several European markets, driven by regulatory pressure, corporate decarbonization demand, and the aftermath of the 2022 energy crisis. Germany, Austria, and Switzerland each bring distinct capabilities — Germany with industrial-scale clean energy deployment, Switzerland with deep-tech carbon removal and energy storage innovation, and Austria with a rapidly growing green tech ecosystem anchored in circular economy and...

This page is part of the Startuprad.io Knowledge Center. It serves as a structural reference for how climate tech, energy, and sustainability startups operate across the three markets.

In Short

German cleantech companies raised EUR 1.8 billion in investment in 2024, with the country leading Europe at EUR 832 million in climate fintech funding alone. Germany achieved 59% renewable electricity in 2024, up from 6% in 2000, and targets 80% by 2030. Sunfire secured EUR 500 million in Series E funding for green hydrogen production technology, while 1KOMMA5° extended a EUR 150 million pre-IPO round with 2024 revenues of EUR 520 million. Switzerland hosts two climate tech unicorns — Climeworks (direct air capture) and Energy Vault (gravity-based energy storage) — and deep tech accounts for roughly 60% of all Swiss venture capital. Austria's green tech startup count grew to 215 in 2025, a 71% expansion since the first survey in 2022, with the country ranking third in the EU Eco-Innovation Index. Across the region, the EU Emissions Trading System now covers approximately 75% of EU emissions and has raised EUR 183.6 billion in revenue, while the European Green Bond Regulation entered force in December 2024.

ClimateTech in Germany

Germany's Energiewende — the national energy transition — provides the policy framework for the country's climate tech sector. The target is 80% renewable electricity by 2030 and 100% by 2035, with carbon neutrality by 2045. Germany achieved 59% renewable electricity in 2024, up from 6% in 2000. The nuclear phase-out was completed in April 2023, and coal and lignite are scheduled for phase-out by 2038. Greenhouse gas emissions are targeted for a 65% reduction from 1990 levels by 2030.

Major German climate tech companies have reached significant scale. 1KOMMA5°, headquartered in Hamburg, extended a EUR 150 million pre-IPO round in late 2024 with participation from Hamilton Lane, CalSTRS, G2VP, Porsche Ventures, and Eurazeo. The company operates approximately 80 locations across seven markets, serving over 120,000 customers with integrated energy solutions including photovoltaics, storage, heat pumps, and EV charging. Revenue reached EUR 520 million in 2024, and the company plans to invest over EUR 100 million in software expansion through its Heartbeat AI and virtual power plant technology by 2027.

Sunfire, a green hydrogen pioneer, secured EUR 500 million in Series E funding combining EUR 215 million in equity, EUR 200 million in grants, and EUR 100 million in European Investment Bank debt. The company manufactures solid oxide electrolysis cells that operate at approximately 800 degrees Celsius, reducing hydrogen production costs through waste heat utilization. Its order backlog exceeded 800 MW in 2024. Enpal, a Berlin-based residential solar company, has raised over EUR 5 billion in debt financing and EUR 600 million in equity, with backing from SoftBank and HV Capital. Zolar raised EUR 100 million with BNP Paribas in April 2024 for its digital residential solar platform.

Berlin and Munich serve as the primary climate tech hubs. Berlin hosts over 2,000 active tech startups and launches approximately 500 new ones annually, with the A² Accelerator at Adlershof providing dedicated cleantech support. Munich's ecosystem includes 250,000 tech professionals and 35 deep tech companies specializing in fusion energy, advanced batteries, and quantum computing for energy optimization.

Corporate decarbonization software is a growing subsector. Plan A provides a SaaS platform for corporate decarbonization and ESG optimization. Carbmee raised USD 21 million in December 2024 for its Environmental Intelligence System designed for EU carbon compliance. The carbon accounting market raised EUR 270 million in total in 2024, with growing focus on Scope 3 emissions and AI integration.

ClimateTech in Switzerland

Switzerland hosts two climate tech unicorns. Climeworks, based in Zurich, is the global leader in direct air capture technology and launched Climeworks Solutions in 2024 to expand corporate net-zero partnerships. Energy Vault developed gravity-based energy storage systems and completed an IPO on the New York Stock Exchange in 2022.

ETH Zurich and EPFL together maintain approximately 150 research groups in energy with roughly 460 energy scientists. Four successful spinoffs in carbon capture and energy storage have emerged from these institutions. EPFL spinoff Beyond Scroll is accelerating green hydrogen adoption, while Qaptis claims a 90% carbon emission reduction for freight trucks. GRZ Technologies develops solid-state hydrogen storage systems.

Swiss climate tech financing included 70 rounds in 2024, with total investment remaining stable while other sectors declined. The sector has attracted $1.6 billion since 2019, with over 120 VC-backed startups in the pipeline. Switzerland's Energy Strategy 2050 requires decarbonization of the entire energy system, with electricity demand projected to increase from the current 56 TWh to approximately 75 TWh by 2050. The SWEET research program (Swiss Energy Research for the Energy Transition) accelerates innovation implementation through consortia including the University of Geneva, EPFL, University of Bern, and ETH Zurich.

The circular economy is active at a smaller scale. Kuori in Basel develops sustainable plastic alternatives from organic waste including banana peels and nut shells for footwear applications. Rheiazymes focuses on molecular bio-recycling for fashion industry plastics. 9T Labs, ranked third in the 2024 TOP 100 Swiss Startup Awards, produces 3D-printed carbon fiber composites.

ClimateTech in Austria

Austria's green tech startup ecosystem grew to 215 companies in 2025, a 71% expansion since the first survey in 2022. Energy accounts for 38% of new green tech startups, followed by circular economy at 21% and digital solutions at 17%. Vienna hosts 84 green tech startups, while the Green Tech Valley spanning Styria, Carinthia, and Burgenland accounts for 70. Austria ranks third in the EU Eco-Innovation Index.

Government and institutional support comes through multiple channels. The aws (Austria Wirtschaftsservice) provides startup ecosystem support, while the Renewable Energy Expansion Act (EAG) allocates EUR 1 billion annually until 2030 for cleantech deployment. The Climate Lab, AplusB Centers, and Impact Hub Vienna provide community-based incubation. Speedinvest, headquartered in Vienna, is a leading European VC for climate tech and industrial tech investments. VERBUND X Ventures deploys up to EUR 2.5 million in initial investments focused on the energy transition.

Notable Austrian startups include Refurbed, which secured EUR 45.88 million in Series B funding and has saved over 54 million kilograms of CO2 through its refurbished electronics marketplace since its 2017 founding. MATR produces fully recyclable mattresses using only steel and polyester, claiming a 50% lower carbon footprint than conventional alternatives, and rents to hotels. Neoom raised EUR 30 million in 2024 for its clean energy platform.

Energy Infrastructure

Virtual power plants represent a growing segment of the energy transition. Next Kraftwerke, based in Germany, operates Europe's largest virtual power plant with 7.5 GW of aggregated capacity across Germany, Belgium, France, Italy, Switzerland, Poland, and Austria. It aggregates small generators, combined heat and power units, flexible loads, storage, and renewables to enable participation in energy markets and grid frequency control. The global virtual power plant market was valued at USD 1.93 billion in 2024 and is projected to grow at a 23.66% CAGR to USD 3.65 billion by 2035, with Europe as the fastest-growing region.

Grid technology startups are addressing the complexity of integrating distributed energy resources. GridX provides IoT and software solutions for energy industry digitization. Lumenaza operates a distributed energy resource management system enabling local energy communities, backed by E.ON and EnBW. Co-Power raised EUR 6.4 million in 2024 to help European industry manage energy costs. Dieenergiekoppler, a Dresden University of Technology spinoff, enables mid-sized businesses to use self-produced renewable energy.

Regulatory Environment

The EU Green Deal establishes the overarching framework, targeting EU-wide climate neutrality by 2050. The EU Taxonomy for Sustainable Finance defines which economic activities qualify as environmentally sustainable, guiding capital flows toward green investments. The European Green Bond Regulation entered force in December 2024, providing a voluntary, legally grounded label for bonds aligned with taxonomy criteria. In 2024, EU green bonds represented 6.9% of all corporate and government bonds issued, up from 5.3% in 2023.

The EU Emissions Trading System now covers approximately 75% of EU emissions and was expanded in 2024 to include CO2 emissions from maritime transport. Revenue raised through the system has reached EUR 183.6 billion. The 2030 target is a 62% emissions reduction in ETS sectors compared to 2005 levels. In February 2025, the European Commission announced a sustainability Omnibus to simplify reporting architecture in response to complexity feedback on the CSRD, Taxonomy, ESRS, SFDR, and CBAM frameworks.

Trends in 2024 and 2025

Green hydrogen is scaling from pilot to production. Sunfire's EUR 500 million raise and 800 MW order backlog signal industrial-scale deployment, and a 500 MW FEED study for a large-scale European green hydrogen project was launched in April 2024. Cost reduction through high-temperature electrolysis and waste heat utilization is the primary technology focus.

Direct air capture continues to attract investment despite deployment challenges. The DAC market grew from USD 179.81 million in 2024 to a projected USD 256.81 million in 2025, with a long-term CAGR of 43.56% toward USD 3.24 billion by 2032. Total private investment from 2021 through mid-2025 reached $2.3 billion. However, annual investment has declined roughly 50% from 2023 to 2024, and deployment delays affect nearly all companies in the space.

The 2022 energy crisis accelerated Germany's renewable energy expansion and shifted focus toward energy storage, grid resilience, and decentralized energy systems. Distributed energy solutions and virtual power plants have emerged as direct responses to energy security concerns. Corporate decarbonization demand continues to grow, driven by regulatory compliance requirements including the EU Taxonomy, CSRD, and the European Sustainability Reporting Standards.

What This Page Does Not Cover

This page provides a structural overview of climate tech, energy, and sustainability startups across Germany, Austria, and Switzerland. It does not cover the following topics, which are addressed elsewhere in the Startuprad.io knowledge taxonomy:

Funding mechanics, deal terms, and public instruments — covered under Startup Funding & Venture Capital
AI and deep tech beyond energy applications — covered under AI & Deep Tech Startups
Venture capital strategy and investor perspectives — covered under Venture Capital & Investor Perspectives
Startup scaling and go-to-market operations — covered under Startup Scaling, Growth & Operations

Relationship to Other Knowledge Areas

This page sits within the Startuprad.io Knowledge Center as a Tier 1 pillar. It is the parent page for three Tier 2 sub-pillars: Green Hydrogen & Energy Storage, Carbon Capture & Removal Tech, and Circular Economy & Sustainable Materials.

For how climate tech companies are funded, see Startup Funding & Venture Capital. For the investor perspective, see Venture Capital & Investor Perspectives. For current developments, see Startup News & Market Signals.

Where to Go Next

Readers interested in specific climate tech segments can navigate to the relevant Tier 2 page once available. Those tracking live market developments should consult the Startup News & Market Signals section. For context on how Startuprad.io organizes its coverage across all topics, return to the Knowledge Center.

About the Host

Joern Menninger is the host of the Startuprad.io podcast and covers founders, investors, and policy developments across the DACH startup ecosystem. Through more than 1,300 interviews and nearly a decade of reporting, he documents the evolution of the European startup landscape. Follow Joern on LinkedIn.