Dry Powder and New Funds 2026

Climate funds closed a record $92bn across 179 funds in 2025, led by energy infrastructure giants. Deployment outpaced even that, and dry powder stood at $90bn as of Q1 2026, down from a $112bn peak a year earlier.

This report tracks climate fund formation, dry powder, and close rates across venture, private equity, and infrastructure. It shows capital concentrating in mega-funds and mature infrastructure while venture funds struggle to raise, and maps the split between a resilient Europe and a slowing US.

• $90bn in climate dry powder remained as of Q1 2026, after a record $92bn fundraising year in 2025.
• The top 10 investors account for $193bn, or 75% of all capital raised, through 58 mega-funds.
• Fund close rates fell to 57% in 2025 from 94% in 2020, leaving $205bn stuck in the pipeline.
• Europe raised $61bn in 2025, versus $37bn for the US.
• Venture's share of climate capital shrank from about 20% in 2021 to under 8%, and VC close rates fell to 39%.