Climate and cleantech venture capital investments in 2023 are set to fall roughly 28% compared to last year, according to new PitchBook data shared exclusively with Cipher.

Compared with last year’s venture investments in this sector totaling $58.8 billion, the above chart shows the amount dropping to $42.3 billion, with data updated until Dec. 12.

The drop persisted despite the increase in “mega deals,” which PitchBook defines as greater than $200 million, toward the second half of the year, compared to just four in all of last year.

These deals include the $918.6 million raised by battery manufacturer Verkor and the $380.7 million by Electric Hydrogen, which makes electrolyzers, the equipment used to split water using electricity.

The chart illustrates the long shadows high interest rates and inflation are casting over the economy this year, along with the acute impacts caused by the March collapse of Silicon Valley Bank, a bank popular with climate tech startups.

Editor’s note: Electric Hydrogen’s investors include Breakthrough Energy Ventures, a program of Breakthrough Energy, which also supports Cipher.