Over the past year, the Clean Energy & Carbon Solutions sector has established itself as a central pillar of the global energy transition, driven by policy alignment across major economies, a surge of corporate procurement, and investment flows measured in the hundreds of billions. 

The sector’s story is now shifting from long-term ambition to near-term execution and toward the companies that can convert the policy wave into real, commercial-scale projects.

“2025 marked the point when the clean energy transition shifted from theory to buildout. Capital is flowing to companies that fix the real bottlenecks in waste, emissions and supply chains, with technology that can grow,” said Ryan Iverson, Portfolio Manager at CEM Partners Fund.

That view is reflected in the documents and datasets that shaped this sector in 2025.

Deloitte’s Renewable Energy Industry Outlook flagged substantial growth for this sector in 2024 rolling directly into 2025, powered by record investment, AI-related electricity demand, and ongoing electrification trends.

S&P Global’s Top Cleantech Trends 2025 report estimated global cleantech energy supply spending at roughly USD $670 billion, pointing to carbon capture, low-carbon hydrogen, and corporate renewable procurement as key engines of growth.

Market research firms projected the Carbon Capture, Utilization, and Storage (CCUS) sector rising from USD $5.8 billion in 2025 to USD $17.75 billion in 2030 at a 25% CAGR, with longer-range forecasts calling for as much as USD $69 billion in annual revenues by 2034.

Resources for the Future’s Global Energy Outlook 2025 added another layer, showing clean electricity gaining share under every scenario, with wind and solar surpassing half of global electricity generation by 2050.

All of this reinforced the simple reality that clean energy and carbon solutions moved to the centre of the investment landscape in 2025 and will take on an even larger role as 2026 approaches.

What Drove the Shift: Policy and Corporate Demand

Global policy alignment was the backbone of 2025’s momentum in this sector.

Europe

The EU deepened its REPowerEU agenda, accelerated solar and wind additions, and set a binding 2030 renewable energy target of 42.5%. It also advanced its Clean Industrial Deal, Clean Energy Investment Strategy, and new Energy Union legislation, while preparing full deployment of its Carbon Border Adjustment Mechanism (CBAM). These measures tighten carbon costs on imports and reward domestic low-carbon technologies which is a tailwind for both clean energy and carbon solutions.

Asia

China expanded its 2024–25 clean energy plan and began laying the groundwork for a gradual coal phasedown starting in 2026. It also advanced national carbon market rules and floated tax incentives for carbon capture, directly improving CCUS project economics. Across Asia-Pacific, APEC, or the Asia-Pacific Economic Cooperation and regional governments accelerated grid modernization, storage, and clean-fuel adoption in response to rising energy demand.

North America

In Canada, Budget 2025 was framed as a step toward climate competitiveness, reinforcing investment tax credits for clean power, storage, hydrogen, and CCUS. The Canadian Renewable Energy Association noted that federal measures “set a clear path” for clean energy investment. In the U.S., the Inflation Reduction Act continued driving record wind, solar, and storage deployment, even as shifts in tax credit structures forced some developers to rethink financing strategies.

“Corporate demand, AI load growth, and sovereign policy are converging. That combination rarely happens in the energy sector. It creates durable conditions for multi-year investment,” said Iverson.

The Road Ahead: 2026 and Beyond

The road ahead for 2026 and beyond is shaped by the momentum built in 2025. 

Clean energy and carbon solutions have moved from broad policy alignment into a period shaped by infrastructure buildout, material innovation, and practical emissions management. 

The pressure on electricity systems is already visible as AI and data centres add new load growth, and S&P Global estimates that corporate buyers alone could drive about 300 TWh of additional clean power demand by 2030. That is roughly the amount of electricity needed to power 28 million homes in North America for a full year, a scale that shows how quickly the transition is accelerating.

At the same time, carbon management is stepping forward as a core pillar of the transition. IDTechEx projects capture capacity could reach 2.5 gigatonnes a year by 2045. Two and a half gigatonnes a year is the equivalent of capturing all emissions from every passenger car on the planet, a comparison that shows how central carbon management is becoming to long-term climate planning.

Multiple market studies see sustained multibillion-dollar growth in carbon capture revenues through the next decade. Hard-to-abate sectors such as power generation, cement, and heavy industry are becoming early adopters as policy support strengthens.

A parallel change is taking shape in circularity. Investors are placing greater weight on technologies that turn waste into resources or reduce the carbon intensity of materials like concrete, coatings, and critical minerals. This trend reflects a broader recognition that the energy transition depends not only on clean power but also on cleaner inputs for construction, manufacturing, and industrial processes.

These forces create a clear runway for the three companies featured in this edition, all of which distinguished themselves at CEM Events in 2025 and are well placed to advance into the next phase of growth.

Aduro Clean Technologies Inc.

Aduro (CSE: ACT) sits at the heart of the circular materials trend. Its Hydrochemolytic Technology uses water and catalysts at moderate temperatures to break down waste plastics, including mixed films and multilayer packaging, into cracker-ready feedstock. This feedstock allows existing petrochemical plants to turn recycled plastics into the basic chemicals needed for making new products, without having to change their equipment.

Over the past year, the company moved from pilot testing into the early stages of commercialization. It commissioned its fully continuous Next Generation Process pilot plant, advanced the design of a one-tonne-per-hour demonstration facility and mapped out a path to commercial units that can process up to 25,000 tonnes a year. 

Aduro also expanded its commercial reach through its Customer Engagement Program, which now includes partners such as TotalEnergies, and it launched a collaboration with ECOCE, Mexico’s producer-responsibility organization, to test real flexible packaging waste starting in January 2026.

“Aduro is going after the waste plastics that usually end up in landfills. If you can turn flexible packaging into a feedstock that fits straight into today’s petrochemical infrastructure, you open the door to a different future for recycling,” said Iverson.

By late 2025, Aduro’s market capitalization had reached about USD $357 million, supported by strong insider ownership. With regulators and brand owners pushing for solutions to one of the fastest-growing waste streams, the company is stepping forward as a first mover and is moving into 2026 with real momentum behind its commercial plans.

CVW Sustainable Royalties Inc.

CVW (TSX-V: CVW) approaches energy transition through a financial platform that gives clean technology developers project-specific royalties designed to support capital needs, scalability, and long-term cash flow. The model is built on two pillars. 

The first is the company’s proprietary CVW Technology for oil sands waste recovery, a near-commercial system rated at TRL-8, which means it has been proven in an operational setting and is one step away from full commercial deployment. This technology can extract bitumen, solvents, and water from oil sands tailings and has the potential to generate more than CAD $160 million in after-tax cash flow per project each year under flat pricing assumptions.

The second pillar is a diversified royalty portfolio supported by an estimated CAD $850 million in clean tech opportunities. This portfolio is anchored by a royalty agreement with Northstar Clean Technologies, a company that processes waste asphalt shingles and turns them into liquid asphalt, fibre, and aggregate for reuse. Northstar contributed about CAD $1.1 million in revenue to CVW during the first nine months of 2025. Its recent progress, including securing a letter of intent from Export Development Canada to support multiple US facilities, demonstrates how the model scales with strong operating partners.

“Royalty platforms are a proven model. CVW is adapting it to one of the fastest-growing segments of the economy, which is clean technology. That gives investors leverage without the operational risk,” said Iverson.

CVW enters 2026 with a maturing asset base and a growing pipeline tied to the decarbonization of hydrocarbons, the recovery of critical minerals, and the expansion of advanced recycling technologies.

HydroGraph Clean Power Inc.

HydroGraph’s (CSE: HG) patented Hyperion System produces high-purity graphene using a controlled explosion process that is modular, energy-efficient, and generates no process waste. This gives the company one of the cleanest production methods in the graphene industry.

Its graphene delivers improvements across several major markets. In concrete, it can make structures stronger, reduce water absorption, and speed up curing, with life-cycle tests showing potential cuts of up to 15% in energy use and overall carbon impact. In coatings, it can boost durability, corrosion resistance, and UV protection. In energy storage, tests show supercapacitors can hold up to four times more charge and lead-acid batteries take in power more efficiently.

During 2025, HydroGraph advanced its commercialization plans through its partnership with the Graphene Engineering Innovation Centre in Manchester, which gives the company access to industrial prototyping and direct engagement with potential customers. 

“HydroGraph’s graphene delivers performance that industry can measure. When you help concrete use less energy and batteries run longer, you open the door to real commercial demand,” said Iverson.

With scalable production, growing application data and a pipeline of industrial trials, HydroGraph is well positioned to benefit from both emissions-reduction requirements and the increasing focus on material efficiency across global supply chains.

Investor Takeaway

Clean energy and carbon solutions enter 2026 with strong policy backing seen across North America, Europe, and Asia, fast-rising electricity demand driven by AI and industrial electrification, and a growing need for carbon management as companies race to meet their reduction targets. 

For investors in this sector, three themes define the path ahead:

• Infrastructure scale-up in grids, storage, and energy management
• Carbon management through capture systems and circular feedstocks
• Materials efficiency across concrete, coatings, and batteries

Aduro, CVW, and HydroGraph each speak to a different part of this shift. Aduro advances circular chemistry, turning difficult waste streams into usable inputs. CVW offers exposure to clean technology through a lower-risk royalty platform. HydroGraph delivers next-generation materials that improve performance while lowering environmental impact.

Taken together, these companies illustrate where the Clean Energy and Carbon Solutions sector is heading and where capital is likely to concentrate as markets move from broad commitments to real deployment.

Next Week in the Investor Breakout Newsletter...

We turn to Biotech & Health Innovation and the breakthroughs pulling investor attention into 2026.

Warm Regards and Happy Investing,
Fabian Dawson

Weekly Insight

Each week, CEM Partner and Portfolio Manager Ryan Iverson spotlights the ideas and companies sparking investor interest from emerging growth stories to the Top Picks featured across CEM’s Capital Events. This series brings real insights from the innovators shaping tomorrow’s markets and reveals where investors are finding the next breakout opportunities.