9 debates that shook the impact ecosystem in 2025

The impact sector is no stranger to controversy, and 2025 saw a number of heated (but important!) debates.

From Donald Trump's re-election to how impact VCs should label themselves, here are some of the key issues that got people talking.

1. Is 'climate tech' too narrow? VCs debate the label

The term 'climate tech' faced scrutiny from some impact investors who argued it was too narrow and politically charged. Pale Blue Dot, a Swedish VC firm, dropped the label in favour of terms like 'optimise' and 'adapt'. The debate sparked a lively discussion on LinkedIn, with some investors arguing that the focus should be on impact rather than labels.

"No distractions, renamings, just hard work and patience with heads down," wrote Rokas Peciulaitis, a partner with Contrarian Ventures.

Read the article here.

2. Bill Gates' climate memo sparks outrage and applause

Bill Gates' memo "Three Hard Truths About Climate" divided the impact world. Some saw it as a pragmatic take on the climate issue, while others accused him of downplaying the crisis.

"The last thing we need right now is to shift focus away from the fact that the climate crisis is alarming and urgent," says Ingmar Rentzhog, founder of We Don't Have Time.

Read the article here.

3. Methane-cutting cow feed sparks backlash

Efforts to reduce methane emissions from cows are facing backlash from conspiracy theorists and some farmers. In Denmark, new regulations will require dairy farmers to use methane-reducing feed additives, while in the UK, a trial of the additive Bovaer has sparked protests and boycotts.

"Panic around the prospect of things being added to our food and drink is nothing new," says Rachel Schraer, senior global health reporter for The Bureau of Investigative Journalism.

Read the debate article here.

4. Northvolt: Media witch hunt or justified criticism?

Impact Loop's editor-in-chief Camilla Bergman accused Swedish media of launching a "witch hunt" against Northvolt and its CEO Peter Carlsson. She argues that the battery maker is being unfairly targeted, with some journalists mocking the company's sustainability goals and using inaccurate information to attack its request for government funding.

"Have we honestly learned nothing from history?" she writes. "Does journalistic sense just go out the window the second there's a scandal-led bandwagon to jump on?"

Read the column here.

5. Impact investing: Too profit-driven and not radical enough?

A growing group of investors and founders argued that mainstream impact investing has become too focused on profits, exits, and incremental fixes, even as sectors like defence and mining adopt the impact label.

Advocates of “systemic change investing” want deeper, long-term transformations of economic systems – even if that means slimmer returns.

Read the full article here.

6. Is rebranding a smart move for climate tech startups?

More climate tech startups positioned themselves as "resilience" or "defence" companies in 2025, amid rising interest in security tech from European VCs.

Is this shift a smart strategy for long-term success – or are labels starting to carry less weight? Impact Loop looked into this hot topic in the impact community.

Read the article here.

7. Will Trump affect European diversity efforts?

After Donald Trump axed all diversity and inclusion programmes in the US government, European businesses braced for the fallout.

At London's Sustainability Expo, Impact Loop contributor Mattias Karén took the pulse of British impact companies and organisations to see how they were reacting.

Read the article here.

8. Should more investors speak up about what they believe in?

Israel’s war in Gaza – a taboo subject in the startup world – was the centre of a lively discussion at The Drop, a climate tech gathering in Malmö, Sweden, in September.

We spoke with Heidi Lindvall, general partner at Pale Blue Dot, one of Europe's most well-known climate VCs and the event's organiser, about why the firm chose to speak out on Gaza in a public post on Linkedin, and whether she thinks more investors should follow its lead.

"I don’t think it was a mistake," Lindvall told Impact Loop.

9. Sifted drops climate tech

Sifted’s decision to cancel its climate tech newsletter raised some eyebrows in the startup world. In an op-ed, Impact Loop editor-in-chief Camilla Bergman accused Sifted of "reinforcing the false idea that climate tech is over".

Bergman argues that journalism should challenge the market, not just "mirror" it.

Read the debate article here.