Achievers IAS

• Already the world’s fastest-growing major economy, India is on track to become the third largest by 2030.
• However, this development comes with a significant challenge − sustainability.
• India ranks seventh globally for climate vulnerability, and both its consumers and companies are generally unwilling or unable to pay a ‘green premium’ for sustainable solutions.
• This means that Indian climate entrepreneurs must focus on cost-effective innovations that can scale without raising prices.
• Solutions must also cater to the most impoverished Indians as they will suffer the most from climate change.
• A tall order given that 70% of the urban infrastructure needed by 2047 is still to be built. 
• Fortunately, India’s climate tech ecosystem is rising to the challenge, thanks to innovation, an entrepreneurial spirit and growing support networks.
• For entrepreneurs, investors and business managers, now is the time to explore how Indian climate tech can provide new opportunities for long-term success. 
• The Department for Promotion of Industry and Internal Trade (DPIIT) signed a Memorandum of Understanding (MoU) with the Global Energy Alliance for People and Planet (GEAPP) to accelerate innovation, sustainability, and entrepreneurship in India’s clean energy and manufacturing sectors.
• The two-year partnership, with a provision for extension, will support early-stage climate-tech startups through funding access, mentorship, pilot opportunities, and market linkages.
• The initiative seeks to build a strong pipeline of scalable, investable ventures aligned with India’s net-zero ambitions.
• As part of the MoU, GEAPP will launch the Energy Transitions Innovation Challenge (ENTICE)—a competitive platform offering up to $500,000 in rewards for high-impact solutions.
• Investment support will also be facilitated through partners like Spectrum Impact and Avana Capital.
• DPIIT will connect the program to the Startup India network and anchor outreach through major government schemes.

India’s initiatives to promote climate tech companies

• International Solar Alliance (ISA): Founded in 2015 by French President François Hollande and Indian Prime Minister Narendra Modi, ISA aims to mobilize over US$1 trillion by 2030 for solar energy deployment. The alliance seeks to lower the cost of solar power and increase solar energy generation through aggregated demand for finance, technologies, innovation, R&D, and capacity building.
• One Sun, One World, One Grid Project (OSOWOG): Proposed by India in 2018, OSOWOG aims to provide solar power to approximately 140 countries via a common grid system. Jointly launched with the UK, ISA, and the World Bank Group, it addresses global energy challenges.
• COP26 Glasgow Summit Commitments: At COP26, India committed to achieving net-zero emissions by 2070, meeting 50 percent of energy needs from renewables by 2030, reducing carbon emissions by one billion tonnes by 2030, increasing non-fossil energy capacity to 500 GW by 2030, and reducing carbon intensity by over 45 percent by 2030.
• National Biofuel Policy: Introduced in 2018 to enhance domestic biofuel production and reduce import reliance, this policy allows the use of various raw materials for ethanol production. A National Biofuel Coordination Committee approves the use of excess food grains for ethanol manufacturing to be blended with gasoline.

Emerging climate tech startups in India

• Buyofuel: This Coimbatore-based startup, launched in 2020, works with 30 large consumers of biofuels across various sectors. With clients like ITC, Aditya Birla Group, and Hindustan Unilever, Buyofuel has a monthly revenue rate of INR 70 million (US$838,912) and handles about 12,000 tonnes of biofuels monthly. In November 2022, it raised close to US$2 million in equity funding from investors like Inflection Point Ventures and Venture Catalysts.
• Ace Green Recycling: Specializing in battery recycling technology, Ace Green Recycling secured over US$7 million in funding in 2022. Founded by Nishchay Chadha and Vipin Tyagi, the company aims to develop eco-friendly recycling methods for lead-acid and lithium-ion batteries, operating a plant in the National Capital Region of New Delhi with plans for international expansion.
• GreenJams: This social enterprise has created the world’s first carbon-negative concrete, Agrocrete, which boosts thermal insulation and reduces building costs by 50 percent. Founded by Tarun Jami, GreenJams processes farmer residue and combines it with BINDR, a low-carbon, up-cycled Portland cement substitute.
• urbansciences (Respirer Living Sciences): A leading climate tech startup, Respirer Living Sciences develops IoT and Big Data-enabled technologies for air quality and emissions monitoring. Recognized by Microsoft Research and the Government of India, the company provides solutions for various stakeholders, including government pollution regulators and the general public.
• CI Metrics: Founded in 2021, CI Metrics is the world’s first private R&D lab focused on space, climate, and defense challenges. Supported by ex-ISRO scientists and ML engineers, the startup develops cutting-edge technology for satellite image processing, carbon footprint mapping, and other R&D subjects.
• Aatral: This Chennai-based R&D company, founded in 2017, focuses on fuel cell and hydrogen generation technologies, boasting experienced researchers and expertise in these fields.

India’s climate tech startups are crucial in advancing the country’s sustainability goals and addressing environmental challenges. Despite being a significant source of carbon emissions, India is vulnerable to climate change’s adverse effects. The nation’s rapid urbanization has highlighted the need for sustainable practices in pollution control and water conservation.

Many businesses are re-evaluating their operations to mitigate climate change, transitioning to renewable energy, adopting eco-friendly transportation, and creating a circular economy. While electric vehicles are a prominent market segment, Indian companies are also exploring broader sustainability opportunities. The rise of climate tech startups in India demonstrates a proactive response to the climate crisis, offering innovative solutions to reduce greenhouse gas emissions and promote environmental sustainability.

Source: PIB, Wikipedia, India Briefing, Insead Knowledge, The Times of India, Deccan Herald, The Hindu