Less than a week after massive wildfires swept through dozens of communities in the Judean Mountains, a report released on May 4 determines that the Israeli climate sector has demonstrated “remarkable resilience” despite a host of challenges, including the ongoing Swords of Iron War.
The 2024-2025 Climate Tech Status Report, offering a comprehensive overview of Israel’s climate tech innovation sector, was published jointly by the government-controlled Israel Innovation Authority and its subsidiary, PLANETech, a nonprofit climate technology innovation community in Israel.
“Despite significant global investment declines, the report illustrates how Israel’s climate tech ecosystem has demonstrated remarkable resilience, sustained growth and strong international trust,” according to a press release.
The report says dozens of new startups have been launched and there are nearly 1,000 active companies in the climate tech sector, with global backing, despite the war and a drop in international investment.
Although investments in Israel’s climate tech sector dropped by approximately 39%, from $1 billion in 2023 to $613 million in 2024, closely mirroring the global 41% decline, the report finds, the sector maintained relative stability with 946 active companies, including 49 newly established within the past year. The number of funding rounds also decreased by 33% (from 135 to 90), yet more than 90% involved international investors, highlighting continued global confidence.
Presenting “a nuanced, yet encouraging picture,” the report details how approximately 58% of Israeli climate tech startups are in the pre-seed and seed stages, underscoring significant future growth potential.
The Israel Innovation Authority, which is in charge of planning and executing the country’s innovation policy, increased its own investments in climate tech, reaching a record $105 million in 2024 out of a total $257 million over the past three years.
In addition, Israeli companies secured €105 million in Horizon Europe grants between 2021 and 2023. The report positions Israel as “a stable, active ecosystem with strong international trust, even amidst security and economic crises.” Since 2018, Israeli climate tech companies have collectively raised an impressive $9.5 billion, it says.
Dror Bin, CEO of the Israel Innovation Authority, said that the report highlights the resilience of Israel’s ecosystem.
“Even as global investments sharply decline, Israel maintains relative stability, continues to establish dozens of new companies, and enjoys sustained international trust,” he said.
“Over 90% of investments involve foreign partners—a clear message of global confidence in Israeli innovation. We are committed to providing early-stage companies with the tools, funding, and access to expertise they need to establish themselves, grow, and make an impact—both in Israel and around the world.”
Rotem Trivitsky, director of PLANETech, a joint initiative of the Israel Innovation Institute and CBS (Consensus Business Group), said that despite the complex security situation, Israel’s climate tech ecosystem continues to demonstrate exceptional resilience and grow even during times of uncertainty.
“In a world where the climate tech sector is grappling with challenges of growth and maturity, this resilience is exactly what is needed to achieve a real breakthrough,” she said. “Now is the time to rally additional players such as government, industry, investors, and academia to support startups and seize the new opportunities the ecosystem offers.”