CEFC invests $15 million to accelerate Australia’s climate tech innovation

17 June 2025

The CEFC has announced a cornerstone commitment of $15 million into the new Climate Tech Partners Fund I (the Fund), managed by venture capital firm Climate Tech Partners. The investment backs innovative, high impact technologies that address critical challenges in Australia’s transition to net zero emissions.

The CEFC investment, made through the Powering Australia Technology Fund (PATF), comes alongside commitments from Australian Ethical, the Besan Family Office and other investors. The CEFC investment will support the growth, diversification, and commercial scaling of Australian climate tech businesses to help meet corporate climate ambitions.

The Climate Tech Partners fund will focus on early-stage companies that possess commercially viable technologies demonstrating significant potential for large-scale emissions reduction. The Fund will invest across sectors including energy and power, transport and logistics, and industry and resources, deploying capital in collaboration with corporate partners who are likely to be the end users of the technologies.

The climate tech space in Australia is vibrant, and this is an important time to back innovative companies making breakthroughs in critical technologies.

Malcolm Thornton

CEFC Head of Growth Capital

CEFC CEO Ian Learmonth said: “We are thrilled to support Climate Tech Partners and their model, which is driven by industry demand. The team at Climate Tech Partners has a strong background in venture capital and tech investments and is well placed to identify the next wave of technologies that will drive emissions reduction across key sectors. We are confident this team will deliver both environmental and commercial outcomes.”

CEFC Head of Growth Capital, Malcolm Thornton, said: “This investment supports the advancement of technology essential to Australia’s climate transition – including rapid prototyping, manufacturing, and exposure to market competition. The climate tech space in Australia is vibrant, and this is an important time to back innovative companies making breakthroughs in critical technologies.”

Patrick Sieb, Co-Founder of Climate Tech Partners said: “We’re seeing a wave of breakthrough climate tech—electrification, sustainable fuels, next gen grids—gaining real traction. With tech readiness, corporate demand, and policy aligning, it’s a powerful moment to invest. Even in the US, bipartisan backing for energy security and sustainable fuels shows just how durable this opportunity is.”

Tom Kline, Co-Founder of Climate Tech Partners said: “The Australian Government is committed to long-term climate ambition, which sends a powerful signal to innovators and investors alike. This is a once-in-a-generation chance for Australia to lead in climate solutions — and we’re proud to be driving it, backed by family offices, super funds, and government with corporate partners to derisk and accelerate our investments.”

The International Energy Agency notes that addressing climate change will require significant advances in innovation, and estimates that around 35 percent of the emissions reductions needed to enable net zero emissions globally rely on technologies not yet demonstrated at commercial scale.¹ The same report found that for growth-stage, which is important for bringing the most promising products to commercial success, finance decreased in 2024 on the previous year by 23 percent.²

1 IEA, The State of Energy Innovation, 2025.

2 Ibid, p52.