How the Iran war could scramble the climate tech capital stack

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🗞️ Driving the news: The war affecting the Strait of Hormuz could disrupt billions of dollars in climate tech investment
• Gulf petrostates that fund many cleantech projects face falling oil revenues and damaged energy infrastructure

🔭 The context: Sovereign wealth funds and energy giants from the Gulf, such as Saudi Aramco and Abu Dhabi National Oil Company, have become major investors in emerging climate technologie
• These include electric mobility, hydrogen, carbon capture, long-duration batteries, and carbon removal
• Funds like the UAE’s climate vehicle Altérra have already deployed billions, anchoring major investment platforms from firms like BlackRock and Brookfield Asset Management

🌍 Why it matters for the planet: Climate tech startups often depend on patient, risk-tolerant capital from Gulf sovereign funds and oil-linked investors
• If the conflict reduces oil revenues or forces governments to redirect spending toward reconstruction and security, early-stage cleantech innovation, from hydrogen to carbon removal, could face funding shortages

⏭️ What’s next: Investors expect some deals to slow as Gulf funds reassess priorities during the crisis
• Supply chain disruptions and damaged infrastructure could delay a return to normal investment flows, potentially shifting greater responsibility for climate tech funding to Western governments and public programs

💬 One quote: “There’s increasingly scarce early-stage risk-embracing venture dollars,” said Azolla Ventures co-founder Johanna Wolfson

📈 One stat: The UAE’s climate investment fund Altérra has already deployed about $6.5 billion into global climate funds

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