The coalition for the development of clean technologies in the Iberian Peninsula, Cleantech for Iberia, has produced 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 funding (grants, state-backed loans) and dilutive funding (venture capital, growth equity).

Entitled “How to Mobilise Investments in Clean Technologies in the Iberian Peninsula”, the document stresses that the region needs up to an additional €50 billion per year in public and private investment until 2030 — totalling up to €250 billion — to meet its ecological transition targets.

Within these investment needs, the study notes that although cleantech investment in the region increased by 38% last year and grew six-fold in Q2 2025 compared to the previous year, the shortage of venture capital for cleantech is particularly concerning if Spain and Portugal are to meet those targets. In 2024, the Iberian Peninsula invested €426 million in cleantech venture capital, well behind countries such as Germany (€2.46 billion — six times more). When comparing indicators such as GDP, population, and CO₂ emissions, the region would need at least an additional €4 billion solely in venture capital between 2025 and 2030 to catch up.

What Is Missing to Close the Investment Gap

The Iberian cleantech sector faces major funding gaps throughout its development. In early stages, there is some support through public grants, universities, and early-stage VC, but the processes to access public funds are slow and complex. In the growth stage, many companies struggle to scale prototypes, validate business models, and adapt to the market, as there are no integrated schemes combining public support with private capital. This creates a vacuum at crucial moments for the consolidation of start-ups.

The biggest challenge appears in the scale-up phase: moving from pilot projects to large-scale commercial deployments. This gap reflects the lack of financial mechanisms tailored to the needs of late-stage cleantech, where significant capital is required to increase production capacity and expand internationally. Investors’ perception of high risk, together with the limited supply of instruments such as guarantees, blended finance, or venture debt, exacerbates the problem.

Without urgent action to strengthen access to private capital and risk-mitigation tools, many Iberian innovations risk getting stuck in the demonstration phase, losing competitiveness and climate impact.

In this regard, Bianca Dragomir, Director of Cleantech for Iberia, states:

“Unlocking Iberia’s cleantech capital is not a financial challenge but a strategic opportunity. For investors, it means gaining mitigated-risk access to one of Europe’s fastest-growing clean technology markets. For innovators, it clears the path to scaling. And for policymakers, it is the chance to position the region at the heart of Europe’s industrial future.”

10 Recommendations to Strengthen the Cleantech Capital Structure

In light of this situation, Cleantech for Iberia proposes a plan focused on risk mitigation and the coordination and scaling of investments, which calls for:

• A financial architecture that goes beyond the traditional grant-based model, incorporating a variety of instruments.

• Simplifying administrative procedures and cutting red tape, with one-stop shops and regulatory stability.

• Promoting a unified financial strategy across ministries, such as aligning the Spanish Industry Act with the Decarbonisation Fund.

• Creating and scaling blended-finance instruments combining grants, equity, and debt to de-risk investment.

• Unlocking private capital through public guarantees.

• Boosting cleantech growth-stage funds, such as an Iberian Cleantech Growth Fund.

• Applying targeted tax incentives, including capital gains tax exemptions, corporate tax reductions, cleantech fund tax credits, and benefits for institutional investors.

• Ensuring a clear, predictable regulatory environment to increase FDI and strengthen the region’s international competitiveness.

• Stimulating demand through public-policy measures to create lead markets and generate clear, long-term demand signals.

• Developing a Strategic Cleantech Investment Plan to align industrial policy with ecological transition goals, diversify capital instruments, and support green reindustrialisation with coherent, long-term mechanisms.

The report, authored by Luís Rebelo, Ana Campos and Bianca Dragomir of Cleantech for Iberia, was produced in collaboration with leading institutions and companies recognised for their innovation 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.

About Cleantech for Iberia

Cleantech for Iberia is a coalition of innovators and investors from Spain and Portugal working to position the Iberian Peninsula as an EU clean-technology hub and a privileged location for the development and deployment of a clean industry.

The coalition is driven by Cleantech Group, with the support of the Breakthrough Energy Foundation (founded and funded by Bill Gates), BBVA, Zubi Group, and Aitana, and comprises 28 organisations: A&G, Axon, GNE Ventures, HCapital, Kira Ventures, Klima, Seaya Ventures, Suma Capital, Demeter (investors); 1s1 Energy, Build to Zero, FertigHy, H2Site, Malta, Matteco, Plastic Energy, Plexigrid, Rega Energy, Stegra, Turn2X (innovators); and IE University, NOVA University of Lisbon, Unicorn Factory Lisboa (universities and incubators).