With the World Meteorological Organization reporting that June 2026 was the hottest June recorded for western Europe and the second warmest globally, the pressure is mounting to accelerate the transition to cleaner, more resilient energy systems. The debate has also reached policymakers, with reports that the European Commission’s upcoming Electrification
Ethan Conroy
With the World Meteorological Organization reporting that June 2026 was the hottest June recorded for western Europe and the second warmest globally, the pressure is mounting to accelerate the transition to cleaner, more resilient energy systems.
The debate has also reached policymakers, with reports that the European Commission’s upcoming Electrification Action Plan, expected to be launched on 15 July 2026, will not introduce new measures to improve access to cooling technologies despite rising temperatures across the continent.
The discussion highlights the broader challenge Europe faces – reducing emissions while ensuring its energy infrastructure can meet growing demand. Against this backdrop, Europe’s ClimateTech sector continues to attract investment as startups develop solutions to decarbonise industries ranging from energy and manufacturing to transport and the built environment.
From battery recycling and carbon accounting to heat pumps, thermal storage and renewable energy platforms, these companies are tackling some of the biggest barriers to achieving net-zero targets while building commercially viable businesses.
Founded in 2022, Aira is a Stockholm-based clean energy company providing heat pumps and home energy-saving solutions directly to consumers. The company is helping households transition away from fossil fuel heating by offering an integrated platform for home electrification and energy efficiency.
By making low-carbon heating more accessible, Aira aims to accelerate residential decarbonisation across Europe. In doing so, the company has raised more than €621 million across five funding rounds, including a close of €150 million in August of 2025.
Aachen-based cylib, founded in 2022, is a startup developing sustainable battery recycling technology for end-of-life lithium-ion batteries. Its proprietary process recovers critical raw materials, including lithium, graphite, nickel and cobalt, helping build a circular battery supply chain for Europe’s growing electric vehicle market.
By reducing reliance on virgin mining, cylib is supporting the energy transition through more sustainable battery production. The company has raised €156.1 million across five funding rounds, including a €55 million Series A in May of 2024.
Founded in 2022 and based in London, Isometric is a ClimateTech company operating a science-backed registry for carbon removal credits. Its platform provides independent verification and monitoring of carbon removal projects, helping businesses purchase high-quality, transparent carbon credits.
The company is working to improve trust and accountability in the voluntary carbon market. Isometric has raised €56 million across three funding rounds, including a close of €34 million in June of this year.
trawa is a Berlin-based startup offering an end-to-end Energy-as-a-Service platform for small and medium-sized businesses. Founded in 2022, the company’s software combines renewable electricity procurement with intelligent energy management to help companies reduce costs and lower carbon emissions.
By simplifying access to clean energy, trawa is helping businesses accelerate their decarbonisation efforts. The company has raised €36.4 million across four funding rounds which includes a close of €10 million in May 2024.
Founded in 2022, Samara is a Madrid-based clean energy company helping homeowners adopt rooftop solar and home electrification solutions. The company simplifies the installation process, making it easier for households to lower both energy bills and carbon emissions.
Samara is focused on accelerating the transition to cleaner residential energy across Europe. The company has raised €18 million across three funding rounds, which includes a €4.5 million round raised just 6 months after launch in December 2022.
Berlin-based Climatiq, founded in 2021, is a climate software company providing APIs and emissions data for businesses building carbon accounting and sustainability products. Its platform enables developers and enterprises to integrate accurate emissions calculations into their applications.
By making emissions data more accessible, Climatiq helps organisations measure and reduce their environmental impact. The company has raised €17 million across three funding round, bolstered by their €10 million Series A in June of last year.
Another from Berlin, Ostrom is a Berlin-based digital green energy provider founded in 2021 offering renewable electricity alongside smart tools that help customers use power when it is cheapest and cleanest. The company combines energy supply with technology to improve efficiency and reduce emissions.
Its digital-first approach aims to make green electricity more affordable and accessible for consumers. Ostrom has raised €40 million across five funding rounds, which includes a €20 million Series B which was close in June of 2025.
Founded in 2021, PaperShell, based in Sweden, is a materials startup developing load-bearing components made from natural fibres. Its paper-based composite material is designed to replace carbon-intensive materials such as plastic and aluminium in applications including furniture, consumer products and automotive components.
By offering a lower-carbon alternative to conventional materials, PaperShell is helping manufacturers reduce embodied emissions. The company has raised €60 million across five funding rounds. Earlier this year the company secured €40.3 million in financing to expand industrial production through a new flagship factory in Tibro, Sweden.
Founded in 2023, Stellaria is a ClimateTech startup based in north-eastern France developing next-generation molten salt nuclear reactors. Its 200 MWe reactor design is intended to provide safe, low-carbon electricity with up to 20 years of operation without refuelling.
The company is advancing nuclear technology as a long-term solution for reliable, carbon-free energy generation and has raised €23 million to date.
Founded in 2023, Exergy3 is an Edinburgh-based ClimateTech company developing thermal energy storage systems for industrial applications. Its technology stores heat for later use, helping manufacturers reduce fossil fuel consumption and lower emissions from industrial processes.
By addressing one of the hardest sectors to decarbonise, Exergy3 aims to support cleaner industrial energy systems. The company has raised €22 million across five funding rounds, which includes a raise €11.4 million (£10 million) in Seed funding in April of this year.
