Follow the Money
The September 2025 Edition: Record transition funds, AI ready green data centers, mega batteries, and a new China target are quietly rewriting the climate investing map right now.
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Hey there! 👋
Skander here.
Where did the money flow in September? 65 deals and ~$6.1B, anchored by Brookfield’s $20B raise, Europe at ~$3.1B, a UK BESS at $760M, Sweden data centers at $640M, China targeting 7 to 10 percent cuts by 2035.
Good news! You asked for it, we delivered: We are making the next Follow the Money session public.
👉 Register here to join this Friday, 9am PST, 6PM CEST, for a fun breakdown of the deals last months.
Over to you, Jarek!
But first: Who is Jarek?
Jarek Dmowski is a global transformation leader who partners with high-growth companies with positive climate impact. He combines industry and climate finance expertise with a strong track record of driving growth—across PE/VC-backed scaleups, ABN AMRO, and BCG.
He scaled a data-driven technology company ~2.5x to ~$25M in revenue and led post-merger integrations that enabled ~6x accelerated growth. At a global financial institution, he spearheaded a $2B capital reallocation toward new energy and mobility. He also developed a comprehensive climate plan that translated the Paris Agreement into actionable targets across sectors and established a $250M program to drive efficiency gains and reduce emissions at an energy utility.
Jarek is passionate about how the climate transition reshapes economies and business models, creating significant opportunities for multi-country growth and impact.
Welcome to the next edition of “Follow the Money” — a monthly briefing exploring the capital flows shaping the climate transition.
September brought a welcome surge of optimism to climate finance, as investors reloaded their war chests with tens of billions in fresh capital for climate solutions. The highlight: Brookfield Asset Management’s record-breaking $20 billion BGTF II — the largest energy transition fund ever raised. They were joined by Galvanize Climate Solutions, closing over $1 billion across its venture and growth funds, and the All Aboard Coalition launching a $300 million fund to help startups cross the commercialization ‘valley of death.’
Specialist and regional players also secured major commitments, including Singapore’s Green Investments Partnership ($510M), responsAbility Investments ($350M+), Volo Earth Ventures ($135M), Germany’s Vireo Ventures (€50M), and Africa-focused The Catalyst Fund ($10.4M).
On the policy front, the world’s largest emitter delivered a pivotal signal. China unveiled the 2035 climate pledge — its first absolute emissions-reduction target — aiming to cut net GHG emissions 7–10% below peak levels by 2035. Though not fully aligned with a 1.5 °C pathway, this marks a critical policy shift: from managing energy intensity to controlling absolute emissions. Plans to expand the national ETS to heavy industry and introduce new product carbon-footprint standards will shape investment flows in industrial decarbonization for the next decade.
September recorded 65 climate deals worth ~$6.1 billion — in line with recent months. The momentum in climate finance remains strong. Let’s dive in:
Where did money flow in September 2025?
Explanation of the approach and source data: The investment list was developed based on disclosures, newsletter monitoring and review of climate news. Although not exhaustive, 65 climate-related investment deals were tracked—amounting to roughly $6.1 billion (all data in US$), covering all continents and different life stages of companies and development finance programs. Data skew toward early-stage companies and investments. We are continuously working to expand the data sources and coverage of investments.
So, where did the money flow in September 2025?
Europe reclaimed the top spot with over $3 billion in investments, followed by strong activity in South America and Australia. North America remained active with 28 deals, though at significantly lower volumes than in previous months.
As in earlier months, the Energy, Industrial, and Transportation sectors dominated activity. Meanwhile, Climate Data and Climate Adaptation/Resilience continued to gain momentum.
AI’s influence was once again visible — ten AI-driven climate solutions secured funding, underscoring the growing role of artificial intelligence in accelerating climate innovation.
Venture capital remained strong, with 36 investments (averaging $24M each) across Seed to Series C rounds — including 18 in North America and 14 in Europe — broadly distributed across sectors.
Climate finance volumes were boosted by a handful of large project finance and DFI-backed deals (12 transactions ranging from $100M to $860M). The Global South was the main recipient of large-scale adaptation finance, with major DFI-led projects announced in Uruguay, Guatemala, Argentina, Zambia, Mozambique, and Sri Lanka.
The average transaction size reached about $93 million. Among the largest corporate deals were an ~$800M project finance facility for Fidra Energy (UK) and a ~$600M debt financing for EcoDataCenter (Sweden). On the public side, significant funding included an ~$800M green bond from the State of Baden-Württemberg (Germany) for green buildings, energy efficiency, and clean transport, and a ~$ 700M Clean Fuel Program from the Australian Government.
Geographically:
Europe led with 18 deals (~$3.1 billion), followed by North America with 28 deals (~$ 0.6 billion).
Strong financing activity in South America with 4 deals (~$1.4 billion) and Australia with 2 deals (~$0.9 billion)
Is money following our expectations for H2’2025 (refer to Follow the Money - June 2025)? In September, we saw particularly strong support for three key themes:
Tailwinds for Baseload Clean Tech ✅✅
While September lacked the blockbuster fusion rounds of August, it delivered a broader wave of investment across nuclear and geothermal:
Nuclear: Funding spanned the full chain — fuel, fission, and fusion.
Paladin Energy raised $202M to expand its uranium mining in Australia.
Deep Fission secured $30M for its underground SMR design.
Proxima Fusion extended its Series A by ~$18M, while Japan’s Kyoto Fusioneering raised $63M in equity and debt to supply key fusion components.
Geothermal: Rodatherm Energy raised $38M Series A for its novel closed-loop system, attracting strong backing from strategic and climate-focused VCs.
Clean Digital Infrastructure:
EcoDataCenter secured $640M debt to scale its renewable-powered, AI-ready data centers in Sweden.
Soluna Holdings obtained up to $100M to develop “green” data centers co-located with renewables to use curtailed power.
Surge in Grid Tech & Energy Storage ✅✅ (storage) / 🌫️ (grid)
The battery land-grab is on, with grid-scale storage dominating project finance headlines:
Fidra Energy reached financial close on a $760M package for its Thorpe Marsh BESS project in the UK — one of Europe’s largest.
Grenergy secured $270M non-recourse financing for the 3.5 GWh Elena battery phase of its Oasis de Atacama project in Chile.
In Argentina, the IFC signed a $300M mandate with Central Puerto for the country’s first utility-scale battery system.
Hydrostor obtained a $55M credit facility to advance its A-CAES long-duration storage project in Australia.
florrent raised $9.5M in seed funding for hemp-based supercapacitors to improve grid reliability.
Climate Intelligence & Adaptation Tech ✅✅ -> ✅✅✅
September underscored the rise of adaptation finance, with DFIs deploying nearly $1 billion in sovereign-level projects to strengthen resilience:
World Bank:
CAF – Development Bank of Latin America: $130M loan to Uruguay for a dam securing drinking-water supply to Montevideo.
African Development Bank: $22.8M grant to Mozambique to strengthen its rice value chain against climate shocks.
These deals signal a new phase: climate adaptation as investable infrastructure, backed by DFIs and national programs at unprecedented scale.
Europe
Europe’s climate finance landscape in September was defined by large-scale infrastructure projects and a continued focus on energy and industrial decarbonization, as well as clean AI infrastructure. Key highlights:
Energy: Fidra reached financial close on a ~$760 million package to build one of Europe’s largest battery energy storage systems on the site of a former coal power plant and EcoDataCenter secured ~$640 million in debt to expand its sustainable, renewable-powered data center operations.
Buildings: The State of Baden-Württemberg (Germany) issued an €800 million sovereign green bond to finance green buildings, energy efficiency, and clean transportation projects.
Transport: Waat closed ~$115 million VC round for EV charging infrastructure in private environments, complemented by three mid-sized rounds in sustainable aviation fuel (SAF), battery innovation, and electric motorcycles.
AFOLU: 3 mid-size VC rounds in alternative proteins (NxtFood, The Protein Brewery and Revyve) — signaled steady investor interest in sustainable food systems.
Industrial & Climate Data: Investment activity remained moderate, with five industrial and two climate data deals — slightly lower than expected given the sectors’ significance.
North America
With few large-scale financing rounds, the United States remained the global hub for early-stage climate technology investment, recording the highest number of early deals. Key highlights for North America:
Energy (Nuclear & Geothermal): Strong activity in next-generation technologies: Rodatherm Energy raised $38 million (Series A) for its advanced closed-loop geothermal system, Deep Fission secured $30 million to develop underground small modular reactors (SMRs), and Soluna Holdings received large-scale funding to build and operate data centers co-located with renewable energy sources. Nuclearn secured $10.5 million (Series A) to deploy its automation and knowledge management platform for the existing nuclear fleet.
Grid & Climate Data: A wave of AI-driven solutions aimed at accelerating project development and grid optimization: Euclid Power raised $20 million for its AI-powered project management platform, Ultimarii closed $1.9 million for its AI tool streamlining regulatory analysis, and WeaveGrid, backed by LG Technology Ventures, is developing software that enables utilities to manage EV charging load—turning electric vehicles into a flexible grid resource rather than a liability.
Climate Data: Five deals were recorded in this category, including Euclid Power’s $20 million round (mentioned above), showing continued interest in digital infrastructure for the energy transition.
Industrial, Transport & AFOLU: Moderate activity with 4, 3, and 3 deals respectively, spread across diverse subsectors.
Canada: Out of 28 total North American investments, three were in Canada—early-stage rounds for Ultimarii and Solenergy, and a mid-sized financing for Hydrostor to advance its compressed air energy storage project in Australia.
Asia and RoW
In September, climate investment activity continued across these regions.
Asia: 6 deals totaling approximately $0.2 billion, marking a significant drop compared to previous months.
Australia, Africa, and South America: 12 investments totaling around $2.2 billion, reflecting a strong uptick and signaling a geographic shift in climate finance momentum.
Asia
Asia showcased a mix of strategic government-led programs, corporate R&D investments, and growing venture activity — with a strong focus on agriculture in September:
AFOLU: Continued to attract early-stage financing, with deals for Aydi, Agroz and Fragraria.
Climate Adoption/Resiliance: The World Bank funded a $100 million project in Sri Lanka to enhance climate-resilient agriculture.
Energy: In Japan, Kyoto Fusioneering raised $63 million from a consortium of strategic corporate and government-backed investors to advance the development of critical components for fusion reactors.
RoW
Investment patterns in September highlighted a clear divergence in global climate finance. The largest capital flows in Africa and South America were primarily directed by Development Finance Institutions (DFIs) toward climate adaptation and resilience projects, while in Australia, public investment played the leading role:
Climate Adaptation & Resilience:
The World Bank approved a $430 million Catastrophe Deferred Drawdown Option (Cat DDO) for Guatemala to strengthen disaster preparedness.
The CAF – Development Bank of Latin America provided a $130 million loan to Uruguay for the construction of a dam to secure drinking water for Montevideo.
In Africa, the World Bank funded a $137 million project in Zambia to promote sustainable forestry and climate-resilient livelihoods, while the African Development Bank approved a $22.8 million grant to Mozambique to strengthen its rice value chain against climate impacts.
Transport: The Australian Government launched a major AU$1.1 billion Clean Fuels Program to spur domestic production of sustainable aviation fuel (SAF) and renewable diesel — a landmark step toward decarbonizing transport.
Energy: Grenergy secured $270 million in debt financing for its 3.5 GWh Oasis de Atacama battery storage project in Chile, one of the region’s largest renewable energy storage investments.
What to observe during the rest of 2025?
The fourth quarter of 2025 will continue to be shaped by policy risk (subsidies and tariffs), geopolitical divergence, and capital-flow shifts. We will continue watching the impact of:
“One Big Beautiful Bill”
Tailwinds for Baseload Clean Tech - also observing a surge of funding for clean energy data centers
Surge in Grid Tech & Energy Storage - fueled by global manufacturing of solar panels and batteries that scaled so quickly it now outpaces even the most ambitious net-zero demand scenarios
The ‘Security & Resilience’ Pivot
More visible needs for Climate Intelligence & Adaptation Tech
Mid‑Stage CapEx-Intensive Clean Tech Faces “Valley of Death
Regional (Policy) Fragmentation
What are other market shifts to observe?
Stay tuned for the next monthly update.
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