The 2025 Massachusetts Climatetech Industry Report is an annual accounting of the sector’s activity. 2024 legislation updated MassCEC’s purview to not just clean energy but also to climatetech. This expanded focus allows MassCEC’s work to foster greater economic impact within the Commonwealth and move closer to the state’s 2050 net zero emissions target. Beginning this year, MassCEC is providing a new Climatetech Industry Report, which establishes baseline data required to track future growth of the industry in subsequent annual reports.
Massachusetts continues to lead the way by being the first state to create a definition and track employment for the climatetech industry. Climatetech encompasses innovative technology solutions that lower emissions within supply chains and services, mitigate the impacts of climate change, and help communities adapt and build resilience to future climate events. The industry can be broken into the following three segments, defined as:
Clean Energy: Generating or transporting energy, reducing consumption of energy, or monitoring, capturing, or sequestering carbon dioxide or other greenhouse gas (GHG) emissions
Greenhouse Gas Mitigation Goods and Services: Producing goods or offering services that result in lower GHG emissions (including but not limited to low carbon building materials, manufactured alternative food proteins, waste management, and recycling)
Climate Impact Prevention, Mitigation, and Repair: Preventing, mitigating, or repairing damage from climate events (including but not limited to flooding, wildfire, sea level rise, and extreme temperature)
Climatetech Job Data:
Massachusetts has a total of 162,940 climatetech workers across the three industry segments:
- Clean Energy: 118,114 jobs
- Greenhouse Gas Mitigation Goods and Services: 19,325 jobs
- Climate Impact Prevention, Mitigation, and Repair: 25,501 jobs
The climatetech industry is robust, with 10,569 businesses across Massachusetts. This equates to almost 4% of all businesses within the Commonwealth conducting some activity relevant to the climatetech industry. Of the climatetech businesses in the state, 46% are small businesses with 10 or fewer employees.
The climatetech industry directly contributes $17.3B to the Massachusetts Gross State Product (GSP) and the 162,940 direct climatetech jobs also support 46,151 indirect jobs and 95,591 induced jobs in Massachusetts. As a result, the industry supports a total of 304,683 direct, indirect, and induced jobs, which combined contribute a total of $51.2B in GSP, $3.7B in state and local taxes, and $7.9B in federal taxes.