Investors are ditching climate tech for AI hype, says CEO: Founders are 'pissed off’

Investors are pulling money out of climate tech and rushing headlong into sectors such as artificial intelligence, according to one prominent founder and CEO.

"I know a bunch of founders that are pretty pissed off because their companies went bankrupt because the investors disinvested them, because, you know, climate tech isn’t hype anymore," Lubomila Jordanova, CEO of Berlin-based carbon accounting firm Plan A, tells Impact Loop.

Jordanova, a former investment banker, declined to name the companies or their founders.

AI 'Ponzi scheme'

The wider "industry obsession" with AI is leaving climate startups starved of capital, argues Jordanova.

However, she doesn’t dismiss the technology outright. Plan A itself uses AI for anomaly detection, benchmarking, and contextualising client data.

But she doesn't mince her words on the sector’s hyper growth, likening it to a "Ponzi scheme," fuelled by speculative money that "has never even been printed."

That hype, she says, is wildly misplaced. “AI has been humanified. It’s become the solution to all problems, but it’s not solving the immediate crises."

"Meanwhile, the world is literally on fire," she added, in reference to the ongoing climate crisis.

Climate funding dips to seven-year low

This year, global VC funding for climate tech is on course for its lowest level since 2018 – $29 billion – according to Dealroom data. Meanwhile AI investment has already reached a record $148 billion in 2025.

This is partly a sign that climate tech is maturing and thus attracting less venture capital. However, Lorenzo Chiavarini, head of research at Dealroom, said this week that from there data they've looked at AI does seem to be "pulling some of the oxygen out of climate tech."

Despite the downturn though, Jordanova's own company is doing well. Plan A has secured six- and seven-figure corporate contracts, operates across four European cities, and expects to reach profitability within seven months.

But she warns the broader ecosystem, especially at the early-stage, is at risk if investors keep chasing the next flashy thing.

"We need to stop investing in hype and start investing in reality," she says. "And the reality is climate disasters are already here."