The Cleantech for Iberia coalition, dedicated to advancing clean technologies in the Iberian Peninsula, has prepared a report aimed at understanding and improving the landscape of public and private cleantech investments and financing mechanisms available in the region. The analysis, based on the Draghi report on European competitiveness, covers instruments ranging from pre-seed to growth capital, including non-dilutive financing (grants, state-backed loans) and dilutive capital (venture capital, growth equity).
Titled “How to Mobilize Investments in Clean Technologies in the Iberian Peninsula”, the report highlights that the region requires up to €50 billion additional public and private investment per year until 2030 to achieve the ecological transition goals, amounting to €250 billion in total.
Within these investment needs, the study notes that although clean technology investment in the region increased by 38% last year and grew sixfold in the second quarter of 2025 compared to the previous year, the shortage of venture capital for cleantech is particularly concerning for Spain and Portugal to meet these targets. In 2024, the Iberian Peninsula invested €426 million in cleantech venture capital, far behind countries such as Germany (€2.46 billion, six times higher). Comparing indicators like GDP, population, and CO₂ emissions, the region would require at least €4 billion more in venture capital between 2025 and 2030 to catch up.
The cleantech sector in Iberia faces significant financing gaps throughout its development. Early-stage projects receive some support through public grants, universities, and early-stage venture capital, but the processes to access these public funds are slow and complex. During the growth stage, many companies are limited in scaling prototypes, validating business models, and adapting to the market, as there are no integrated schemes combining public support with private capital. This creates a gap at critical moments for startup consolidation.
The biggest challenge emerges at the scaling phase: moving from pilot projects to large-scale commercial deployment. This gap reflects the absence of financial mechanisms tailored to the needs of cleantech in advanced stages, where significant capital is required to expand production capacity and grow internationally. Investor perceptions of high risk, along with the limited availability of instruments such as guarantees, blended finance, or venture debt, exacerbate the problem.
Without urgent action to strengthen access to private capital and risk mitigation tools, many innovations in Iberia risk being trapped in the demonstration phase, losing competitiveness and climate impact.
In this regard, Bianca Dragomir, Director of Cleantech for Iberia, states:
"Unlocking cleantech capital in the Iberian Peninsula is not a financial challenge but a strategic opportunity. For investors, it means access with mitigated risk to one of Europe’s fastest-growing clean technology markets. For innovators, it provides a clearer path to scaling. And for policymakers, it offers the chance to position the region at the heart of Europe’s industrial future."
10 Recommendations to Strengthen the Cleantech Capital Structure
To address this situation, Cleantech for Iberia proposes a plan focused on risk mitigation, coordination, and scaling investments, which includes:
The report, authored by Luís Rebelo, Ana Campos, and Bianca Dragomir of Cleantech for Iberia, involved collaboration with institutions and companies recognized for their innovative character and commitment to the energy transition, including Breakthrough Energy Ventures, Rondo, BBVA, European Climate Foundation, 1S1 Energy, GNE Finance, Suma Capital, Aitana, Malta Inc, HCapital, Kira Ventures, Andersen, Matteco, and Climate Strategy.
Cleantech for Iberia
Cleantech for Iberia is a coalition of innovators and investors from Spain and Portugal aimed at unlocking the Iberian Peninsula’s potential as an EU clean technology hub and a prime location for the development and deployment of a clean industry.
The coalition is driven by Cleantech Group with support from the Breakthrough Energy Foundation (founded and funded by Bill Gates), BBVA, Zubi Group, and Aitana, and comprises 28 organizations:
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