Financing climate tech in India: insights from a dialogue with entrepreneurs and investors
India’s ambitious climate commitments for 2030 and its Net-Zero target for 2070 signal a need for rapid decarbonisation and low-carbon economic growth. The transition to low-carbon technologies will require established industrial players as well as startups seeking to establish their niche in multiple climate tech sectors to adapt to the new green economy. However, the pace at which the climate tech ecosystem evolves will hinge on the ability of these new sectors to attract financing. India requires approximately US$2.5 trillion by 2030 to meet its nationally determined contributions (NDCs) and US$10.1 trillion to achieve net-zero emissions by 2070. Meanwhile, India’s current tracked green finance only represents around 25 percent of the total amount required across sectors just to meet the NDCs. Assessing Investments in the Climate Tech Venture Ecosystem India has a vibrant climate tech ecosystem, with many startups looking to take advantage of the demand for green products and services. A number of prominent industrial players have also pledged substantial amounts towards climate tech investments.
