Germany Leads in GreenTech Start-ups Amid Global Shift

In recent years, Germany has emerged as a leader in the GreenTech sector, with significant investments flowing into environmental technology start-ups. According to the latest data from the GreenTech Monitor 2025, published by the German Start-up Association, one-quarter of all investments in German start-ups over the past five years have been directed toward companies focused on environmental technology.

This figure is notably higher than those in other countries, such as the United Kingdom at 18% and the United States at 12%. The report highlights Germany's position as a frontrunner in the GreenTech landscape, emphasizing the need to maintain and expand this lead. The association advocates for the allocation of an additional EUR100 billion towards climate protection initiatives, enabled by recent adjustments to fiscal policies, to support innovative solutions that enhance the sustainability of the German start-up ecosystem.

Experts point to the recent shift in US economic policy under President Donald Trump as presenting new opportunities for Europe, particularly in GreenTech. The previous administration under Joe Biden had introduced the Inflation Reduction Act, which constituted the largest climate investment initiative in US history. As this program is now being scaled back, there is potential for Germany and Europe to reclaim leadership in the GreenTech sector.

The report notes that entrepreneurs in ClimateTech from around the world are increasingly looking towards Europe to develop and scale their sustainable innovations. In Germany, GreenTech start-ups received a total of EUR11.7 billion in funding over the past five years, with the energy sector exhibiting remarkable growth. Approximately 26% of these start-ups are engaged in energy-related ventures, followed by significant contributions from the industrial and software sectors.

Despite the positive trends in energy, the report indicates that other sectors, such as consumer goods and food, are currently experiencing challenges due to a general decline in consumer confidence. Additionally, the mobility sector, traditionally strong in Germany, has faced difficulties following a series of substantial financial investments.

The report emphasizes the importance of fostering growth in the GreenTech domain while addressing the hurdles faced by other sectors, particularly as Germany navigates its role as a key player in the global sustainability dialogue.