Investment in low-carbon tech to diversify, global study finds

The study into global low carbon energy investment trends, conducted by Pinsent Masons and Censuswide, found an overwhelming focus from both VC investors and technology developers on carbon capture and storage (CCS) solutions over the past 12 months – 90% of the almost 1,000 survey respondents said they had invested in those technologies during the period.

However, while 78% of those surveyed said they plan further investment in CCS over the next year, the study also showed their plans to diversify their interests in low‑carbon technologies.

According to the study, 22% of VC investors and technology developers intend to invest in tidal or ocean power technology over the next year, up from just 1% in the past year. Similar increases in investment are anticipated in relation to geothermal, solar and wind power too: for geothermal, from 6% to 22% this year; for solar, from 11% to 25%, and for wind, from 9% to 19%.

Laura Ayre of Pinsent Masons, an expert in supply chain projects concerning decarbonisation, said: “The planned surge in tidal, ocean and geothermal investment is striking, but the gap between stated intent and actual delivery capability is the most important thing to watch here.”

“The supply chains that would be needed to support rapid growth in either technology are still developing and lack meaningful scale globally. Developers that move quickly into these spaces will need to think carefully about equipment sourcing, installation logistics and the availability of specialist contractors – many of whom are currently committed to offshore wind and CCS pipelines,” she said.

“That said, the diversification trend creates a real opportunity for supply chain businesses that can transfer expertise across technology categories. Companies with subsea installation, grid connection or environmental assessment experience are well-placed to extend their offering into geothermal and tidal projects as the pipeline builds. Getting into those conversations early – before projects are fully formed – will matter,” she said.

“The solar and wind prominence in planned investment is, in some ways, the steadier story. These are technologies where the project finance structures are understood, the supply chains are established, and developers know what they are buying. For investors looking to balance a portfolio that includes exposure to less mature technologies, renewed solar and wind activity offers a more familiar risk profile alongside the higher-upside, higher-uncertainty bets,” Ayre added.

Iain Macphail of Pinsent Masons, who advises on major energy projects, added: “It is interesting to see the investment appetite around wind power. The market, in particular the offshore wind market, has faced challenges in recent times but these findings show that wind power is seen as a sector for investment and growth. That aligns with our experience of the market – while some headwinds remain, the market continues to move forward.”

Specialist in low-carbon technology projects Stacey Collins, also of Pinsent Masons, said: “What stands out in the data is that diversification is happening alongside continued confidence in CCS, not instead of it. Investors and developers are not abandoning established decarbonisation pathways; they are building around them. In practice, that means combining core technologies like CCS with complementary generation and optimisation solutions to improve resilience, efficiency and overall project economics. That shift points to a market that is becoming more mature and more delivery focused, rather than chasing individual technologies in isolation.”