At the start of the year, we’ve taken time to reflect on what 2025 asked of sustainability and what it has set up for the months ahead. It was a year of challenge and learning, shaped by important conversations. Below, our partners share what stood out to them and what they are taking into 2026.
A Reflection on 2025
From Ambition to Resilience
In 2025, sustainability and climate finance shifted from ambition to resilience amid tighter capital and growing uncertainty.
Christopher Gruen, Managing Director
From Growth to Survival
“2025 was a very difficult year for innovators, particularly hardware startups in ESG and sustainability. In many cases, the question was no longer about growing, but about being able to survive. During a period of geopolitical and economic uncertainty, much investment was held back, and it was hard to see capital flowing into arms to support wars rather than fighting the real threat to humanity being climate change.”
Traction Wins Capital
“I saw a lot of startups in my investment portfolio, and across the climate tech industry, going bankrupt, including some that would have found investment relatively easily two years ago. The winners were the ones whose sales picked up significantly, or who were able to bootstrap their activities to weather the adverse environment.”
Jean-Jacques Jouanna, Managing Director
Andrew Aldridge, Partner
Capital Efficiency Focus
“Last year was a challenging fundraising environment, with VC investment down again on 2024 and around 33% below its 2021–2022 peak. Hardtech solutions were hit harder as investors focused on proven traction and unit economics, leaving many start-ups struggling in the ‘Valley of Death’ . Extending runways became critical, with greater focus on cost control and targeted R&D.
Looking Ahead
A More Disciplined Climate Transition
Looking ahead to 2026, there are early signs of a shift from survival toward execution, with greater focus on economics, infrastructure, and solutions that can scale.
Andrew Aldridge, Partner
Grid Fragility & Storage
“Looking ahead to 2026, energy security is becoming central to sustainability. Recent blackouts in Spain and Portugal have exposed the fragility of existing systems and the growing need for storage and flexibility as renewable generation expands.”
Battery Scale & Supply Chains
“There will be a lot of focus of building out larger battery projects and potentially pushing innovation in the right field. However how the EU / UK react geopolitically on becoming too dependent on China? Will we be able in the EU to create our own supply chain? Questions that I’m interested to get answers to.”
Christopher Gruen, Managing Director
Phillip Cholerton, Partner
Regulatory Uncertainty
“Looking ahead, the pace of business adoption of sustainable practices is increasingly set against the shifting sands of regulation, creating uncertainty around how quickly change can be delivered.”
Value-Driven Sustainability
“The emphasis will be on financial returns first versus environmental benefits. The latter will be seen as a bonus rather than a prime motivation. In a way, it will put the focus where it should be: climate-tech makes sense if it creates sustainable value.”
Jean-Jacques Jouanna, Managing Director
Woon-Hui Oh, Partner
Sustainability Leadership
“2025 was a year of immense sustainability challenges (political, socio- economical), but this also presents the critical opportunity to pause, reflect, and reset how we think and act when it comes to sustainability. I have hope that in 2026, sustainability leadership will directly influence market share, talent attraction, and partnerships.”
NovAzure’s Message
The year ahead will not be simple, but the direction is becoming clearer. Across systems, markets, and leadership, sustainability is entering a more grounded phase, shaped by execution rather than intent alone. To kick off the year, we’re sharing a short company video that reflects who we are at NovAzure and the work we’re building together.
Continuing the Conversation
