India is on a mission to achieve net-zero carbon emissions by 2070. An essential part of this mission is the role of climate tech startups, which are leveraging advanced technologies to combat climate change and promote sustainability across various industries. Let’s dive into how these startups are shaping the future and overcoming challenges.
The Landscape of Indian Climate Tech
India’s diverse geography means each region has unique environmental needs. This diversity is driving interest from early-stage investors in climate tech startups across the country. However, developing and scaling these technologies comes with its own set of challenges.
Challenges in Funding
Securing funds for climate tech ventures can be tough. The economic pressures such as rising interest rates, falling valuations, inflation, and geopolitical tensions have made it harder.
- Funding Decline: A PwC report highlights that venture and private equity investment in 2023 was $638 billion, a 50.2% drop from the previous year.
- Impact on Startups: This decline hit climate tech startups hard, with grant financing and private market equity falling by 40.5%, rolling back funding levels to what they were five years ago.
Women Entrepreneurs Leading the Way
Women are making significant contributions to this sector. Rajesh Kumar Singh, Secretary of the Department for Promotion of Industry and Internal Trade (DPIIT), noted the growth of climate tech startups, particularly in green technology, renewable energy, the circular economy, water, and carbon capture. Recognition from DPIIT helps these startups access government incentives.
Technological Innovation
Advanced technology is at the heart of these innovations. Sectors like solar energy, industrial decarbonization, and agriculture are seeing remarkable advancements thanks to these startups.
India’s Climate Goals and Technological Alignment
India is highly vulnerable to climate change, making it crucial to achieve net-zero emissions by 2070. A report by Unitus and Climate India estimates that the Indian climate tech market will need over $1 trillion by 2030 to meet sustainability goals.
Key Initiatives to Promote Climate Tech
Several initiatives are driving the growth of climate tech in India:
- International Solar Alliance (ISA): Founded to mobilize over $1 trillion by 2030 for solar energy, ISA aims to lower solar power costs and boost solar energy generation.
- One Sun, One World, One Grid (OSOWOG): Aiming to provide solar power to around 140 countries through a common grid system.
- COP26 Commitments: India committed to net-zero emissions by 2070, meeting 50% of energy needs from renewables by 2030, and reducing carbon emissions by one billion tonnes by 2030.
- National Biofuel Policy: Enhances domestic biofuel production to reduce import reliance, supporting the use of various raw materials for ethanol production.
Emerging Climate Tech Startups in India
Let’s look at some standout startups making waves in the climate tech space:
- Buyofuel: Based in Coimbatore, this startup partners with large consumers of biofuels. With clients like ITC and Hindustan Unilever, it handles about 12,000 tonnes of biofuels monthly.
- Ace Green Recycling: Specializes in eco-friendly battery recycling technology, securing over $7 million in funding in 2022.
- GreenJams: Created Agrocrete, the world’s first carbon-negative concrete, which enhances thermal insulation and reduces building costs.
- urbansciences (Respirer Living Sciences): Develops IoT and Big Data-enabled technologies for air quality and emissions monitoring.
- CI Metrics: Focuses on space, climate, and defense challenges, supported by ex-ISRO scientists.
- Aatral: Based in Chennai, this R&D company focuses on fuel cell and hydrogen generation technologies.
Conclusion
India’s climate tech startups are essential in driving the country’s sustainability goals. Despite being a significant carbon emitter, India’s proactive approach through these startups shows a commitment to tackling climate change. The combination of innovative solutions and government support is helping these startups flourish, making a tangible impact on reducing greenhouse gas emissions and promoting environmental sustainability.
These startups symbolize a proactive response to the climate crisis, offering hope and solutions for a sustainable future.
