As Europe prepares for another year of extreme weather events, the energy sector has become a focal point for Venture Capital investment. Research by Dealroom reveals a 12% increase in investment in European technology companies, with a notable $5.6 billion going into energy and climate tech in the first half of 2024, surpassing investments in artificial intelligence. The report highlights hydrogen as a particularly attractive technology for investors, with companies like HysetCo and Tree Energy Solutions securing significant rounds of funding. Investors are showing a preference for businesses that combine engineering with innovation, especially those focusing on hardware for energy transition. Companies like Again are working on converting CO2 into chemicals for heavy industry use to decarbonize operations. Despite the capital and time investment needed for hardware-focused startups, potential long-term returns are seen as significant. The European energy transition market presents lucrative opportunities as grids and heavy industries target decarbonization. Companies like Again target large-scale chemical manufacturers, aiming to provide solutions for decarbonization. European companies like 1KOMMA5°, Newcleo, and H2 Green Steel are transforming critical industries, marking European leadership in energy transition. Despite Europe's strong focus on energy transition, there are concerns about the compatibility of the classic VC model with the capital needed for these ventures. Investors like noa are seeking asset-light businesses and capital-efficient models. Continued green energy investments in Europe indicate progress and potential, offering hope amid climate change challenges.