In recent years, India has emerged as a global powerhouse, fuelled by its rapidly expanding economy and burgeoning population. However, the country faces an unprecedented challenge: mitigating the detrimental effects of climate change while meeting the growing demands of its people. The need for climate-tech and sustainability investments has become more urgent than ever before.
India is highly vulnerable to the impacts of climate change, ranging from extreme weather events to water scarcity and rising sea levels. The repercussions are not only environmental but also economic, social, and health-related. Recognising the gravity of the situation, the Indian government has committed to ambitious renewable energy targets, but achieving these goals requires significant investments in climate-tech and sustainability solutions.
Investing in clean energy infrastructure, sustainable agriculture, smart cities, waste management, and eco-friendly transportation systems are crucial steps to ensure a greener and more resilient future for India. The integration of technology and innovation is vital to tackle these challenges effectively. Moreover, climate-tech investments can unlock economic opportunities, create jobs, and foster inclusive growth.
By 2030, India wants to reach a significant milestone by using renewable energy sources for 50 per cent of its overall energy needs. Initiatives must consider sustainability and technology leadership will be the main entry point for achieving sustainable development.
On India and the need for climate-tech and sustainability Investments, Er. Koneru Satyanarayana, chancellor, KL Deemed to be University, said "India, as one of the world's largest and fastest-growing economies, faces a crucial need to prioritise climate-tech and sustainability investments in order to mitigate the damaging effects of climate change and ensure a sustainable future. With a population of over 1.3 billion people, the country's demand for energy, infrastructure, and resources is only set to increase, posing a significant challenge to its environment and natural resources. Investments in clean energy technologies, sustainable agriculture, circular economy models, and green infrastructure are crucial for India to achieve its ambitious goal of reducing greenhouse gas emissions by 33-35% by 2030. Additionally, these investments can provide significant economic opportunities, from job creation to increased energy efficiency and reduced costs for businesses. As the world looks to combat climate change and transition to a sustainable future, India's role in leading the charge cannot be underestimated. Climate-tech and sustainability investments are not just necessary for the country's environmental well-being, but also for its long-term economic growth and global competitiveness."
Stating on the matter Aman Mittal, vice-president, Lovely Professional University, said, "India is the world's third-largest producer of greenhouse gas emissions, and its rapid economic growth has come at a significant environmental cost. The country is already experiencing the impacts of climate change, including rising temperatures, erratic rainfall patterns, and more frequent extreme weather events. To address these challenges, India has set ambitious targets to increase the share of renewable energy in its power mix, reduce emissions intensity, and expand sustainable transportation options. The country aims to achieve 40 per cent of its installed power capacity from renewable sources by 2030 and reduce emissions intensity by 33-35 per cent by 2030, compared to 2005 levels. Investments in climate tech and sustainability are crucial for India to achieve these targets and mitigate the impacts of climate change. The country's clean energy sector has already attracted significant investment, with over $14 billion invested in renewable energy in 2022. However, much more needs to be done to scale up these efforts and drive innovation in areas such as energy storage, electric mobility, and sustainable agriculture. Investors have a critical role to play in supporting these efforts by providing capital, expertise, and resources to climate-tech and sustainability start-ups and initiatives. If India can continue to attract investment in these areas, it has the potential to become a global leader in sustainable development and set an example for other emerging economies."
Addressing the topic “India and the need for climate-tech and sustainability Investments” Naveen Kulkarni, CEO, Quantumzyme, said “India and the need for climate-tech and sustainability investments with recent developments, it is clear that India is poised to attract a lot of investment. A recent study published that over $400 trillion capital is available globally to invest in climate tech and environmental impact. For this to flow in India, it will mostly be as a growth capital. Hence, it is important for existing players to pave the way both by investing and mentoring likely tech start-ups to understand and communicate the value in the right way for the next stage of growth.
For long-term success in climate tech, it requires a sea change starting from a longer fund life cycle to a deeper understanding of the technology and business models with an added effort of re-orienting a start up to acclimatise with the global concept of climate impact. India can win if climate tech investors can bridge the gap between technology and commercialisation and support access to larger players and help them engage early with budding start-ups.
India makes a continuous effort to achieve the goal of Net Zero emissions by 2070. Even entrepreneurs throughout all industries, including those in climate-tech commerce, are increasingly using sustainability as a benchmark. The impact of climate change is becoming a "communal benefit" and a necessity for businesses. It is becoming a strong asset class and has investment potential as a result. Climate tech will need to be financed with a variety of capital sources, including grants and blended finance as well as equity and debt. Equity investors must understand that while investing in climate tech requires patience and resources, there is also a significant chance of profit.
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