Toronto-Based The CleanAI Initiative is the first global hub pioneering how AI can accelerate the green economy transition

“One of the most important shifts underway is conceptual: AI is often framed as part of the climate problem because of its energy use, with focus being on LLMs, generative AI, and immense training data sets. But cleanAI shows the opposite dynamic is equally powerful: AI as a core tool for climate solutions, applied with consideration for climate impacts (SLMs, edge, etc.). The same technologies driving digital transformation are now being applied to grids, factories, materials, and supply chains, where efficiency gains translate directly into emissions reductions and resilience.”

– Emily MacIntosh, Director of Knowledge, The Clean AI Initiative

Emily joined Founder Nicholas Parker, Founding Partner Shivani Chotalla and the Team in 2025 after spending 11 years at MaRS Discovery District supporting technology startups, most recently as the Director of Advisory Services. Her extensive experience includes establishing MaRS’ Benchmarking and Insights function, founding programs for scaling ventures, and delivering market intelligence to entrepreneurs throughout Canada. she leads CleanAI’s knowledge initiatives, produces comprehensive research reports, and develops high-value insights for members and stakeholders. Emily holds a Bachelor of Commerce and a Bachelor of Science (Biology) from Queen’s University.

Interview with Emily MacIntosh

By Suzanne Forcese

WT: Please define Clean AI and how it became the foundation of The CleanAI Initiative.

MacIntosh: CleanAI sits at the intersection of artificial intelligence and the clean economy transition. We define clean or green AI as the application of AI to accelerate decarbonization, resource efficiency, and climate resilience across sectors, where AI is a core enabler or differentiator of climate solutions, not just a peripheral tool.

The initiative builds on the legacy of Nicholas Parker, widely regarded as the father of cleantech and founder of the Cleantech Group. Over more than four decades, Nicholas has pioneered market frameworks that connect breakthrough technologies with capital and industry to address global environmental challenges. His work has long focused on achieving what he calls “exponential impact”: combining cleantech with other transformative innovations (now including AI) and evolving business models to solve urgent, large-scale socio-ecological problems.

The CleanAI Initiative emerged from this perspective. As AI capabilities advanced and climate pressures intensified, it became clear that a new category was forming companies embedding intelligence directly into physical systems—power grids, agriculture, factories, supply chains, natural resources, and more—to drive both economic productivity and climate outcomes. The CleanAI Initiative was founded to define and accelerate this convergence, providing research, market intelligence, and community to connect innovators, investors, and corporates shaping the future of AI-enabled climate solutions.

At its core, CleanAI reflects the convergence of two defining forces of our time: the urgent need to transform the global economy for sustainability, and the growing ability of AI to optimize complex, real-world systems. The result is a new generation of technologies capable of delivering both climate progress and industrial transformation.

WT: Please comment on the the trajectory of AI and climate for 2026 with a rearview look at its momentum in 2025

MacIntosh: In 2025, the relationship between AI and climate shifted decisively from promise to market reality. While public-sector climate funding has faced increasing pressure (particularly in the United States), cleanAI has emerged as a bright spot in private markets, as both climate and AI investors converge on the transformative infrastructure and industrial opportunities it represents.

A major milestone came in September 2025, when cumulative venture capital invested in cleanAI since 2020 surpassed US $50 billion. At the time, that figure signaled strong traction. What’s striking is how quickly the market moved beyond it: by late 2025, a surge of investment pushed cleanAI past $60 billion far earlier than our projected mid-2026 timeline.

The year is now on track to be the strongest on record for cleanAI investment—exceeding even 2021, the peak of the last venture boom—despite many other climate-tech segments still struggling to regain momentum.

Today, roughly one in every ten venture dollars invested in AI globally flows into cleanAI applications. That share is rising, and it matters because venture capital is a leading indicator: investors deploy capital at this scale only when they see credible commercial opportunity alongside climate impact. Taken together, the data suggests cleanAI is moving rapidly from a niche category into the mainstream of both AI and climate innovation.

WT: In what sectors is cleanAI showing up and how?

MacIntosh: CleanAI is appearing across the core systems of the physical economy, with distinct sector dynamics.

Energy and power remain the backbone of the market. In 2025, the sector attracted nearly US $10 billion (about 58% of all cleanAI venture capital), marking a record year. This sustained leadership reflects both urgency and readiness: power systems are under intense pressure to meet electrification demand, and they are inherently complex networks where AI can deliver immediate value through grid optimization, forecasting, asset management, and energy-market intelligence.

At the same time, materials and chemicals has become the fastest-rising category. What were barely visible investment slivers in 2020–2021 now represent a meaningful share by 2025. The surge signals growing confidence in AI’s ability to accelerate materials discovery, optimize industrial processes, and unlock decarbonization pathways in some of the hardest-to-abate sectors.

The transportation and logistics category is also returning to previous investment highs—but with a different composition than in earlier cycles. Growth today is increasingly driven by dual-use technologies spanning civilian and defense applications, rather than purely consumer mobility, reflecting the strategic importance of efficient, resilient supply chains and autonomous systems.

WT: Please comment on theinvestment landscape and evolution into 2026.

MacIntosh: The cleanAI investment landscape accelerated sharply in 2025, with a wave of mega-deals—many exceeding US $1 billion—signaling investor conviction in the sector’s scale potential.

Venture capital is effectively acting as a proxy for where cleanAI is scaling fastest: while energy and power remain the anchor, investors are broadening their bets across sectors where AI can deliver both climate impact and commercial returns.

At the same time, the market is still early in its lifecycle. Capital is flowing in faster than it is exiting, and many investors are waiting for proof points that cleanAI can deliver consistent, large-scale returns. Early signals are emerging: M&A and IPOs/SPACs are beginning to pick up, suggesting the first generation of cleanAI companies is approaching maturity.

Looking toward 2026, we expect a shift toward applied, “physical AI” solutions across industry verticals—including technologies that address AI infrastructure build-out and critical resources. We also anticipate deeper corporate engagement, rapid growth in Asia-Pacific investment, the formation of cleanAI innovation clusters in leading cities, and the emergence of new business models at the AI–industry interface. In parallel, more cleanAI companies are likely to reach global markets in sectors such as automotive, utilities, and marine transport, alongside increased emphasis on dual-use applications spanning defense, security, and productivity.

WT: What countries are leading in the global landscape?

MacIntosh: The United States remains the clear leader in cleanAI, accounting for just under 60 percent of global investment since 2020—more than US $37 billion. However, the next tier of countries is highly dynamic and evolving quickly.

Since late 2025, the top five global has reshuffled noticeably, underscoring how rapidly capital flows are shifting in this emerging market. Today, after the US, Sweden, China, the UK, and Germany follow with far smaller totals—roughly US $3–5 billion each—but very different investment profiles. Sweden and China are dominated by a small number of mega-deals, while the UK and Germany show broader ecosystems with higher deal volume and roughly half of activity at the seed stage.

China is particularly notable. Rather than competing head-on in the race to dominate foundation models, it has prioritized applied AI in energy, manufacturing, and industrial systems—a strategy that appears to be paying off. Even with incomplete data, China already ranks among the top countries by capital invested, suggesting its true scale is likely higher than reported.

Overall, the geographic mix highlights not only where capital flows today, but how national strategies around applied AI are beginning to shape future energy and industrial systems.

WT: What is the vision moving forward?

MacIntosh: CleanAI’s vision is to accelerate the emergence of AI-enabled solutions that transform the world’s physical systems toward a low-carbon, resource-efficient economy. We see cleanAI becoming a foundational layer of 21st-century industry: embedded in how energy is generated and managed; how materials are designed and produced; how goods move; and how natural resources are stewarded.

In practical terms, our focus is on helping this ecosystem scale: providing market intelligence that clarifies where the greatest climate and commercial opportunities lie; connecting innovators, investors, and corporates across sectors and geographies; and highlighting the companies and technologies demonstrating real-world impact.

As cleanAI moves from early growth to mainstream adoption, our goal is to ensure the field develops with both speed and integrity, delivering measurable climate progress alongside economic value.

The key opportunity ahead is to ensure this momentum translates into deploymen at scale. Investment growth is encouraging, but the ultimate measure of success will be real-world infrastructure and industrial transformation. That transition—from capital to impact—is where the next phase of cleanAI will be won.

Related: For a deeper look at the data and trends behind these shifts, 2025 CleanAI Year in Review—available as a free download—provides comprehensive analysis of investment flows, sector dynamics, and global market developments shaping the cleanAI landscape. https://www.cleanai.com/resources

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