Climate capital pours into India as clean tech hits cost parity
zero-emission technologies
.
The country has attracted more than $2 billion in climate-focused capital over the past year alone, according to Bloomberg New Energy Finance (BNEF) data.
Over the past 8-12 months, major climate investors such as TPG Rise Climate, Breakthrough Energy Ventures, LeapFrog Investments, Lowercarbon Capital, and Fullerton Fund Management have moved beyond cautious pilot projects to make strategic bets in India's energy and clean tech sectors.
This influx of climate funding is fuelled not only by environmental urgency, but also by a confluence of favourable factors: cost parity with traditional energy sources, inflection in consumer demand and supportive policy frameworks. India's clean energy demand is increasingly being powered by essential services — including logistics, cooling and distributed power — rather than discretionary consumption.
Long-term scalability
This shift provides investors with confidence in both long-term scalability and durable margins, say industry experts.
'There's been a marked uptick in growth and infrastructure capital doubling down on platform plays across circularity, e-mobility, OEMs, battery lifecycle management and energy storage,' said Nakul Zaveri, partner and co-head of Climate Investment Strategy at LeapFrog Investments, which plans to commit over $500 million to climate solutions.
A key part of this strategy includes a $60 million investment by the European Investment Bank (EIB), with additional backing from the International Finance Corporation (IFC) and Temasek.
Globally, climate finance surpassed $2 trillion in 2024, with a significant portion of private capital flowing into
electric mobility
, battery storage and green infrastructure.
Singapore-based Fullerton Fund Management recently made its first investment under the Fullerton Carbon Action Fund, acquiring an equity stake in Routematic, an AI-driven corporate transport company in India.
'Climate finance in India is poised for a surge, increasingly driven by market economics,' reckons Akhil Jain, investment lead at Fullerton Carbon Action Fund. 'Clean energy and key segments of electric transport are now at or beyond cost parity with conventional options.'
This shift is reshaping investment patterns. Funds are increasingly focused on companies with strong revenue models and proprietary technology. 'There's surging demand for low-emission, resource-efficient technologies, especially in sectors like transport and energy,' said Shailesh Vickram Singh, founder of Climate Angels, which has backed 22 startups in the EV, clean air and climate tech space over the past two to three years.
Rather than backing isolated innovations, investors are now prioritising integrated operators who can build full value chains and deliver resilient, scalable infrastructure solutions. 'What was once seen as high-risk is now attracting a premium, especially for operators executing climate strategies at scale,' said Zaveri.
This evolution also reflects a broader recognition of the importance of embedding adaptation into climate solutions. 'Capital is now flowing towards companies that reduce emissions and also build resilience—across sectors like waste, cooling and mobility,' noted Vasudha Madhavan, founder & CEO of Ostara Advisors, an investment bank focused on electric mobility.
Industry leaders see this as an inflection point.
Over the next 2-3 years, climate finance in India is expected to deepen its focus on scalable technologies with the potential to transform high-emission sectors. 'This is a pivotal moment,' Madhavan added. 'Climate finance is shifting from small, fragmented bets to strategic, high-value investments that can accelerate the clean transition at scale.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
15 minutes ago
- Time of India
After 1-year hiatus, GMDA revives plan for Gurgaon's first bio-CNG facility
Gurgaon: GMDA has renewed efforts to construct the city's first compressed biogas (CBG) plant. The move is part of a major sewage infrastructure upgrade at Dhanwapur more than a year after GMDA's initial tendering attempt failed to secure a competent agency for the project. Tired of too many ads? go ad free now The Rs 166-crore project includes the construction of a 100 million litres per day (MLD) sewage treatment plant (STP) based on sequencing batch reactor (SBR) technology, a 100 MLD main pumping station (MPS), and an integrated CBG unit. GMDA has already floated a fresh tender for the project and if the authority has its way, the facility is expected to be ready by the month of Dec in 2027. The broader strategy is to prevent untreated sewage discharge into the Najafgarh drain. The authority floated the tender in Feb last year, but after 13 extensions and no eligible bidders despite participation from eight agencies, the authority finally cancelled the process in Dec 2024. The plan is now back on track with GMDA officials pushing for timely implementation. Officials said the earlier plan included a 200 MLD MPS, but the scope was revised after 100 MLD capacity was separately accommodated under the ongoing augmentation of the MPS in Sector 9A. "The revised scope has now been floated for bidding. We aim to complete the project by Dec 2027," a senior GMDA official said. The new facility will increase the capacity of the Dhanwapur STP from 218 MLD to 318 MLD, addressing the growing sewage load from sectors 1–23, 33–37 and nearby villages such as Dundahera, Mullahera and Carterpuri. Currently, the plant is running near capacity, treating about 215 MLD of sewage daily. Tired of too many ads? go ad free now The advanced SBR-based plant will ensure high-quality treated water, compliant with National Green Tribunal (NGT) norms. The treated water will be reused for horticulture and other non-potable purposes, contributing to environmental sustainability. Additionally, the integrated CBG plant will convert bio-sludge into renewable fuel, with the capacity to generate up to 5,000 cubic metres of biogas per day. This gas can be supplied to city gas distribution networks, promoting a circular waste-to-energy model, the official added. The new 100 MLD STP plant at Dhanwapur, once operational, will also treat sewage from new sectors, including 81 to 104, helping reduce pollution in the drainage network and downstream water bodies. "This project integrates modern sewage treatment with clean energy generation and is part of GMDA's push for sustainable urban infrastructure," the official added. In addition to this expansion, GMDA is also upgrading the existing 100 MLD STP at Dhanwapur into a tertiary treatment plant to ensure compliance with wastewater discharge norms. The govt approved this upgrade in July last year and the work was allotted to the agency in July last month. The Rs 51.3 crore project will take at least two years to complete.
Time of India
15 minutes ago
- Time of India
Bizman duped of 1.77cr in online trading scam
Lucknow: A Lucknow-based businessman was duped of Rs 1.77 crore in an online trading scam that began with a WhatsApp message and ended with his investment account being blocked. The case was registered at the cyber crime police station on Tuesday. The victim, Vivek Verma, originally from Safedabad in Barabanki and currently residing in Indiranagar Sector-16, alleged that the fraud began when he received a WhatsApp message from an unknown number a few weeks ago. The sender, identifying herself as Shruti Jaiswal, introduced him to a trading platform that allegedly offered high returns. She gained his trust by showing attractive profits on initial small investments and later sent him a website link, urging him to register and begin trading through the platform. Verma initially invested a small sum and soon saw a credited profit of Rs 1 lakh in his account, a tactic often used by cyber fraudsters to lure victims into deeper investments. Encouraged by these returns, he invested a total of Rs 1.77 crore across 22 transactions between May 27 and July 16. However, when he attempted to withdraw the profits, his account was suddenly blocked, and the so-called trading platform went silent. Realising he was duped, Verma approached the Cyber Crime police station and lodged a complaint. "We are tracking the IP address and the payment gateway used in the transactions to trace the accused," said cyber crime inspector Brajesh Yadav.
NDTV
23 minutes ago
- NDTV
ChatGPT To No Longer Tell Users To Break Up With Partners After Update: 'It Shouldn't Give...'
The rise of artificial intelligence (AI) tools has led to people using the technology to ease their workload as well as seek relationship advice. Taking guidance about matters of the heart from a machine that is designed to be agreeable, however, comes with a problem. It often advises users to quit the relationship and walk away. Keeping the problem in mind, ChatGPT creator, OpenAI, on Monday (Aug 4) announced a series of changes it is rolling out to better support users during difficult times and to offer relatively safe guidance. "ChatGPT shouldn't give you an answer. It should help you think it through - asking questions, weighing pros and cons," OpenAI said, as per The Telegraph. "When you ask something like 'Should I break up with my boyfriend?' ChatGPT shouldn't give you an answer. It should help you think it through, asking questions, weighing pros and cons. New behavior for high-stakes personal decisions is rolling out soon." "We'll keep tuning when and how they show up so they feel natural and helpful," the company said. OpenAI added that it will constitute an advisory group containing experts in mental health, youth development, and human-computer interaction. 'Sycophantic ChatGPT' While AI cannot directly cause a breakup, the chatbots do feed into a user's bias to keep the conversation flowing. It is a problem that has been highlighted by none other than OpenAI CEO Sam Altman. In May, Mr Altman admitted that ChatGPT had become overly sycophantic and "annoying" after users complained about the behaviour. The issue arose after the 4o model was updated and improved in both intelligence and personality, with the company hoping to improve overall user experience. The developers, however, may have overcooked the politeness of the model, which led to users complaining that they were talking to a 'yes-man' instead of a rational, AI chatbot. "The last couple of GPT-4o updates have made the personality too sycophant-y and annoying (even though there are some very good parts of it)," Mr Altman wrote. "We are working on fixes asap, some today and some this week. At some point will share our learnings from this, it's been interesting." While ChatGPT may have rolled out the new update, making it less agreeable, experts maintain that AI can offer general guidance and support, but it lacks the nuance and depth required to address the complex, unique needs of individuals in a relationship.
