This year is all about building on recent tech breakthroughs, scaling sustainable solutions, and being smart about a world that is hungry for electricity. Find out what our experts have to say about what the hot climate tech trends are in 2025!
1. Circularity in Practice and at Scale
With hundreds of millions of tons of packaging material produced and sold every year, but with only a fraction achieving true circularity, the challenge is enormous, the best solutions are elegant and the potential rewards are significant. Corporate commitments are ambitious and regulatory tailwinds in 2024 are fanning the fire for this year too! For 2025, we are especially looking forward to packaging innovation in:
- paperization, delivering both recyclability and compostability
- sustainable polymer solutions that are compatible with existing infrastructure
- high-performance, cost-acceptable coatings and inks that are functional and enable material circularity
- digitalization where smart, connected, sortable, and/or traceable packages deliver value around the value circle.
Start-ups to watch: Genecis, Paptic, Vytal, Kalpana, Pulpac, Keto and Cajo Technologies
– Neil Cameron & Fredric Petit, Partners & Co-Heads of Materials & Packaging
“Bio-based coatings derived from renewable resources, such as proteins, are emerging as sustainable alternatives to synthetic packaging materials. Protein-based coatings, sourced from materials like whey and soy, can offer excellent barrier properties, making them ideal for food packaging. These coatings are biodegradable, compostable, and reduce reliance on petroleum-based plastics, aligning with sustainability goals. While challenges include cost, scalability, and performance optimization, advancements in formulation and processing are addressing these hurdles. The adoption of protein-based coatings reflects the growing demand for eco-friendly solutions in packaging, driven by regulatory pressure and consumer preference for sustainable products.
Also, the PPWR is a game-changer for the plastic recycling industry, pushing it toward greater innovation and efficiency. By setting clear goals for recyclability, recycled content, and waste reduction, it fosters a shift toward a circular economy for plastics. While challenges remain, the regulation also provides an opportunity for the industry to lead in developing sustainable solutions that benefit both the environment and the economy.
In this context, innovative approaches like dissolution-based recycling are reshaping the landscape of plastic waste management. Dissolution-based recycling is an advanced technology that selectively dissolves specific polymers from mixed plastic waste using solvents, enabling the recovery of high-purity, near-virgin-quality materials. Unlike other methods, it preserves the polymer’s integrity and reduces contamination issues. However, it requires significant investment, scalable infrastructure, and environmentally friendly solvent systems. Despite these challenges, it holds the promise of a sustainable solution for recycling complex and contaminated plastic waste.”
– Aline Rotzetter, Senior Investment Manager, Advanced Materials & Sustainabiltiy
“Waste-to-chemicals technologies, while still emerging, present a promising opportunity to derive value from diverse waste streams—such as agricultural residues and municipal solid waste—offering sustainable alternatives to traditional feedstocks like fossil fuels and edible crops”
– Michela Puddu, Senior Investment Manager
“Reusable packaging that is scalable and provides data-based insights is the next big trend in packaging circularity. Why?
- Huge amounts of packaging waste are generated on a global scale – according to the World Bank up to 1,657 kg is being generated annually per person.
- The global consumer packaging market (mainly consisting of primary packaging) today is >50% plastic (both flexible and rigid). Only about a fifth of all plastic globally gets recycled, with the rest going to landfill and incinerators or even just littered.
- To-go consumption and takeout food produces a lot of waste – in Germany alone, takeaway food packaging in 2017 produced >281k tonnes of waste (Naturschutzbund Deutschland). Food packaging made up slightly >50%; food and beverage packaging together caused roughly ¾ of the total waste.
Scalable, smart packaging reuse solutions that provide data insights are required, as non-smart solutions have failed in the past.
Tech of interest: digitization of reusable packaging. That means RFID tags for tracking large volumes of reusable packaging through the B2B steps of the circular value chain, as well as QR codes for consumer interaction. Being able to count thousands of containers quickly and precisely with RFID scanning technology as well as having transparency on container inventories at different locations, significantly increases process efficiency, enables automation, and reduces the risk of theft when handling containers with monetary deposit value. In addition, less and less-trained staff is needed. Start-up to watch: Vytal”
– Annina Winkler, Senior Investment Manager, Food, Agriculture & Sustainability
2. The specialization of AI in industry, robotics, and analytics
“2024 was all about generative AI. We’ve seen massive progress, development and diversification of generative AI models over the past year. New models such as OpenAI’s GPT-4o, o1 and Sora, Google Gemini 2.0 or Meta’s Llama 3.1 have taken the multimodality and capability of LLM to an all-time high.
In 2025, we are likely to see the emergence of more specialized AI models (also known as AI agents) that build on general-purpose LLMs, capable of performing a range of tasks in a specific domain without the need for retraining. These agents could act as virtual project managers, customer service representatives and technical advisors. These autonomous or semi-autonomous AI agents will be designed to perceive their environment, make decisions and take actions to achieve specific goals. Multi-agent AI systems will work together to solve complex problems, with each agent optimized and trained for its specific tasks and purpose, similar to human collaboration and teamwork.
AI agents will increasingly find their way into industrial applications through integration with Internet of Things (IoT) devices and robotics. For example, smart homes may have AI agents that autonomously manage energy consumption, security and maintenance. Or a logistics AI agent that manages warehouse operations, predicts demand and automates inventory replenishment.”
– Mehran Zaker, Partner, Head of Automation & Industrial IT
“AI enabled – hidden but across the board. Each single optimization may not make a large impact, but in sum this is another story. Besides optimization across many processes to lower emissions, AI enabled predictive analytics will allow us to be better prepared and to adapt for climate impacts and weather events.”
– Markus Moor, Senior Partner, Chief Investment Officer
“The convergence of robotics, AI, and automation is transforming asset inspection across industries, with a particular focus on renewable energy and critical infrastructure. Drones and robots are now essential for inspecting solar panels, wind turbine internal blades, hydropower penstock, nuclear facilities, green hydrogen storage tanks, aging sewer systems and many more areas, traditionally monitored through labor-intensive, infrequent, and often unsafe methods. Drones and robots equipped with advanced payloads and AI-driven software detect anomalies and predict potential failures far faster than human teams, enabling real-time insights and timely preventive maintenance. This innovation not only enhances safety and efficiency but also ensures optimal asset performance and extended operational lifespans, which are critical in achieving sustainability goals. Start-ups to watch: Flybotix, Sensyn Robotics and Sewer AI.”
– Anvesh Madabushi, Investment Manager, Mobility & Automation
“Based on our work to manage the Swiss Technology Fund, we have spotted two interesting trends:
- Putting AI to work: AI is no longer just a playing field. It is integrated into real-world applications, be it the optimization of building renovations or quality management in industrial productions processes. The more widely AI is used, the more important it becomes to make AI more energy efficient. Swiss startups to watch: keeValue AG, Cerrion AG, Lightly AG.
- Putting drones to work: Drones and robots have grown up, too, and are now an integral part of the work force. They inspect wind turbines and other dangerous and hard-to-reach places, fly unmanned rescue missions, and take over repetitive tasks like cleaning or painting. Not only do they increase worker safety, but the tasks are done more efficiently and accurately than before. Swiss startups to watch: Voliro AG, Flybotix SA, Swissdrones Operating AG, KEMARO AG.
We are excited to watch our currently 144 Swiss portfolio companies leading the way in 2025!”
– Simone Riedel Riley – Head of Technology Fund
“In 2025, generative AI is poised to revolutionize ESG reporting, making it more transparent, efficient, and impactful. By automating narratives, harmonizing data, and offering real-time insights, this technology empowers companies to lead with accountability and innovation in their sustainability efforts.”
– Nastaran Asadi, Investment Manager, AI
3. Tech for electricity demand
“Electrification and data ambitions are producing new demand hotspots with rapidly scaling electricity hunger, most prominently, in the form of data centers. The IEA is projecting global electricity demand from AI, data centers and crypto to rise to 800 TWh in 2026 in its base case scenario, a nearly 75% increase from 460 TWh in 2022. But other areas such as airports or industrial sites also emerge as new electricity consumption hubs. Airports, when electrifying, increase their demand by an order of magnitude. Producing e-SAFs would further this demand by yet another order of magnitude. Instead of a few dozen MW, the demand from a single airport complex can reach GW scale.
Part of the answer can come from an unintended side effect of “drill baby drill”. Geothermal drilling and piping require similar skillsets and toolkits as perfected for fracking, and the generated electricity would be precious renewable base-load energy. If we can see more of these renewable projects unfold, the IEA predicts an 80% drop in costs. Another area of interest to feed this electricity hunger are small modular reactors. 300MW would suffice for a larger industrial site or even an airport.
Meanwhile, grid inadequacy and congestion will only continue to grow, as a result of rapidly scaling decentralized consumption and production solutions. Anything that can relieve the grids, provide alternatives to bottlenecked required materials, and transformers while helping to increase capacity and flexibility will be of great interest to mitigate the system inadequacy.”
– Christoph Frei, Partner, Head of Energy
“As more renewables (both large utility scale plants and distributed rooftop solar and battery systems) come online, the focus continues to be on bolstering the grid infrastructure to support their integration into the power grid:
- New transmission infrastructure takes woefully long to build, and interconnection for utility scale plants, are often the biggest stumbling block for renewables project. I am keen to see more innovation and investment in technologies that maximize the use of existing transmission lines.
- Distribution networks continue to fly blind as more distributed energy resources come online. I am bullish on technologies that provide greater last mile visibility to network operators to make informed decisions on long term capacity planning and short term grid operations.
- Flexibility markets continue to develop globally to support this growth in distributed energy resources whilst maintaining grid stability. Startups are already planing an important role to enable interoperability and communications across devices. I am keen to see solutions that can generate economic value to both the end users and the grid operators.”
– Anandhi Gokhale, Investment Director, Energy
“Maybe it’s because AI data centers are front and center in energy circles that competitive technologies such as heat pumps have a chance to break through the fog of enactment, a term coined by Leah Stokes in her book “Short Circuiting Policy” (Oxford: 2020), an essential reading for climate and clean energy advocates such as myself. The effectiveness of heat pumps is no longer challenged, it’s the propensity of consumers to switch, and the switching costs that hold growth back. Disrupters like Octopus Energy have redesigned the heat pump product offering A to Z and pointed governments to a number of unnecessary barriers to mass adoption. The resulting combination of a high seasonal coefficient of performance, higher flow temperatures together with storage to takes advantage of cheap time of day rates or flexible tariffs is a compelling proposition that challenges the primacy of natural gas heating. Home energy took a hammering during the recent energy crisis that should motivate consumers and governments alike to switch from pipelined natural gas to locally generated renewable electricity. Innovation in and around the heat pump and it’s installation provides the potential for fast adoption, at scale in multiple markets for both entrepreneurs and their investors.”
– Charles Vaslet, Senior Partner, Chief Revenue Officer
4. Tech to enable global water stewardship
“In 2025, Emerald is excited to continue to monitor the increasing focus and traction aimed at water stewardship across global corporations. Water has now become a tangible risk (financial, operational and environmental) to companies across the globe, and brings heightened awareness from all stakeholders focused on availability, consumption, water quality and overall transparency. The path towards improved stewardship will continue to drive innovative technologies and solutions that are ready for growth investment to help solve the worlds water challenges. Startups to watch: Kilimo, FIDO, Aganova”
– Clayton MacDougald, Investment Director, Water