Powering a Sustainable Future: India’s Leap into ClimateTech Innovation
Kailash Nath, Pavan B., Chirag S
Dec 20, 2024
Current ClimateTech
Landscape in India stands at a pivotal moment in its battle against climate change, grappling with escalating environmental challenges that demand urgent, innovative, and scalable solutions. The stakes are immense: in 2022 alone, the nation endured economic losses amounting to $87 billion due to extreme weather events, displacing millions of people and straining public infrastructure. At the same time, coal continues to dominate the energy mix, contributing to 60-70% of electricity generation, which exacerbates pollution, environmental degradation, and health crises.
However, the tides are shifting. The country is embracing the transition to renewable energy, with solar power expected to grow from 109 GW to 392 GW by 2030, a fourfold increase in capacity. Innovations in Climate-Tech offer India the opportunity to address these pressing environmental issues while building a green economy that can drive future prosperity. As of 2023, solar PV installations have reached approximately 60 GW, reflecting the nation’s growing commitment to sustainable energy. Additionally, with an ambitious target of producing 5 million tons of green hydrogen by 2030, India is solidifying its position as a global leader in the clean energy transition.
Growth Drivers
The rapid rise of climate-tech in India is fuelled by several key drivers, making it a hotspot for startups and investors.
Policy support plays a pivotal role, with the government targeting 500 GW of non-fossil fuel energy by 2030 and net-zero emissions by 2070. Initiatives like the FAME II Scheme and incentives for green hydrogen and solar power are catalysing clean technology adoption, alongside focused support for EVs and battery storage. For eg: As of August 31, 2024, the scheme has provided incentives for approximately 14,32,450 electric two-wheelers (e-2W), 1,65,806 electric three-wheelers (e-3W), 22,637 electric four-wheelers (e-4W), and 6,862 electric buses (e-buses), with a total budget allocation of ₹9,586 crore. In addition, The scheme has facilitated the deployment of 3,738 e-buses in various states, with an additional 3,472 e-buses under tender by Convergence Energy Services Ltd. (CESL), aiming to enhance eco-friendly public transportation options
Technological advancements have reduced costs and improved efficiency, with solar power costs dropping over 70% in the last decade and innovations in energy storage enhancing grid reliability. This includes industry defining innovations in solar panel efficiency, energy storage in batteries as well as maintenance of assets in generation and distribution of renewable energy.
Corporate sustainability commitments from companies in India are driving demand for solutions in carbon management, renewable energy, and the circular economy. Eg: Companies like Tech Mahindra, Infosys, ReNew Energy etc have been recognised for their exceptional commitment to ESG compliance with targets to achieve net zero emissions.
Urbanization and industrial growth are spurring the need for circular economy innovations, such as plastic recycling and waste-to-energy technologies, which not only cut emissions but also create sustainable business models.
Chiratae’s Key Areas of Focus
The climateTech ecosystem in India spans a variety of sectors that are critical to the nation’s green transition. Here’s a deeper look into the areas of focus for Chiratae:Energy (Generation + Transition)
India is rapidly expanding its renewable energy capacity, with innovations in solar, wind, and green hydrogen reducing reliance on fossil fuels. Leading players like ReNew Power and Tata Power Solar are driving large-scale projects, while emerging firms like Fourth Partner Energy are introducing technologies like floating solar farms. In green hydrogen, Indian Oil Corporation, in collaboration with Linde Engineering, is developing the country’s first green hydrogen plant, highlighting the sector’s growing importance.Mobility (EV + Financing + SaaS)
The EV sector is transforming, with companies like Ola Electric, Ather Energy, and Bounce Infinity leading two-wheeler production. Financing platforms like Revfin and LoanTap are making EVs more accessible, overcoming cost barriers for low-income users. SaaS platforms such as FleetX Technologies are optimizing EV fleet management with tools for charging schedules, route planning, and analytics, reducing operational costs and emissions.Battery Tech (Energy Storage)
Energy storage is critical for India’s renewable energy infrastructure. Established players like Exide Industries and Amara Raja Batteries are scaling lithium-ion battery production, while startups like Storage Tech are creating cost-effective solutions for grid applications. Innovations like battery swapping stations from Sun Mobility are improving EV recharging efficiency.Enterprise SaaS (Carbon Management)
As corporations pursue net-zero goals, demand for carbon management solutions is rising. StepChange and Snowkap are building platforms to track, measure, and improve ESG performances of corporates, and startups like Cloverly integrate carbon offset tools into operations, helping businesses comply with regulations and cut costs.Circular Economy
The circular economy is advancing through innovations in resource recovery. Banyan Nation is recycling plastic waste into high-quality materials, while Agastya International converts organic waste into clean energy. These solutions reduce waste, promote sustainability, and create green jobs.Carbon Capture, Utilization, and Storage (CCUS)
CCUS technologies are crucial for decarbonizing heavy industries. Carbon Clean Solutions leads in carbon capture for industrial use, while startups like Carbon Clean Tech focus on direct air capture for large-scale applications. Captured carbon is being repurposed into valuable products like synthetic fuels and building materials, creating economic opportunities.Bio-Chemical Innovations + Alternative Materials
Bio-based alternatives are reducing environmental impact. Agro2o uses agricultural byproducts for biodegradable plastics, and Ekmatra develops sustainable packaging from natural materials like banana and mango leaves. These innovations reduce reliance on plastics and foster a circular economy. We also envision the potential to build large companies on the foundation of differentiated technology that can have lasting global impact.
At Chiratae Ventures, we are proud to contribute to India’s evolving climate-tech ecosystem by supporting visionary entrepreneurs who are addressing critical challenges across the value chain. Our portfolio exemplifies our commitment to fostering innovation for a sustainable future. Companies such as KBCols, which develops sustainable natural colors from microbes for diverse applications, Bounce Infinity, a leading electric vehicle manufacturer, and Chainflux, an enterprise blockchain platform enabling circular business models and supply chain traceability, showcase the transformative potential of climate-tech solutions. As India accelerates its green transition, we remain dedicated to partnering with ambitious founders who are shaping a sustainable and resilient economy.
We are excited to engage in conversations with entrepreneurs building scalable, impactful solutions in these areas. If you are an entrepreneur, building in the ClimateTech space, we would love to have a conversation.
For check sizes ranging from $0.5 million to $2 million, you can apply to Chiratae’s Sonic Program: https://www.chiratae.com/chiratae-sonic/ or reach out to kailash@chiratae.com