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Are Big Changes Brewing for the Climate Tech Sector in India?

The Climate Tech Sector In India Holds Immense Potential. In The Last Few Decades, Technological Evolution Has Revolutionized The Business Scenario On A Global Level. The Mindless Use Of Technology Has Led To Detrimental Effects On The Environment.

By : Brand Stories | Updated on: 21 Feb 2024, 04:26:09 PM
Climate Tech

Climate Tech (Photo Credit: Social Media)

New Delhi:

New Delhi (India), February 21: The climate tech sector in India holds immense potential. In the last few decades, technological evolution has revolutionized the business scenario on a global level. The mindless use of technology has led to detrimental effects on the environment. Now, several startups have started chasing sustainable progress. The climate tech sector in India and Southeast Asia is anticipated to touch $350 Billion by 2030.

The climate tech sector encompasses technologies explicitly centred around addressing the impact of global warming and reducing GHG emissions. In the last few years, environmental issues have become a significant concern. To tackle such issues, many climate tech startups came into the picture. The climate tech market was estimated to be worth more than USD 12.5 billion in the year 2021, as per a report produced by UnivDatos Markets Insights.

It is encouraging to see modern-day startup ventures leveraging technology to protect the environment and working hard to tackle environmental challenges. They are addressing facets of climate change and its impact on humanity by adapting new technological innovations and utilizing the power of artificial intelligence.

Need for Climate Tech and Sustainability Investments in India 

There is a need for investment in the climate tech sector and sustainability in India. Making investments in waste management, clean energy infra, smart cities, sustainable agriculture, as well as eco-friendly transportation systems are significant steps to be considered to ensure a flourishing and green future for India. In recent years, India has evolved as a global powerhouse. On the other hand, India holds the spotlight for its rapidly expanding economy & and exponentially increasing population. On the other hand, the nation faces the harsh challenge of mitigating the effects of climate change and meeting the growing demands of its people at the same time.

The impact of climate change has put India in a situation where it has become highly vulnerable. Rising sea levels, increase in heat waves, destruction of livelihoods, agricultural shifts, disruptions in ecological processes, and extreme weather events are some of the existing environmental issues due to negligence of the environment. The repercussions are not only confined to the environment as they are applicable to the economic, social, and health domains.

Taking the gravity of the situation into consideration, the Indian government has initiated taking appropriate sustainable moves and started focusing on ambitious renewable energy targets. Accomplishment of sustainability goals is only possible by timely investments in sustainability solutions and climate tech.

To tackle environmental challenges, the integration of innovation and technology is crucial. Climate tech investments can generate employment for the masses, open the door to possibilities for economic advancement, and foster inclusive growth. India is striving to reach a significant milestone by 2030 making the most of renewable energy sources for 50% of its energy requirements.

Expert Opinion on Investment in the Climate Tech Sector in India

On India and the need for investment in the climate tech sector in India and sustainability, Narendra Kumar, co-founder of Corpbiz, said, “Despite being one of the fastest growing economies in the world, India is still finding out the ways to mitigate the devastating consequences of climate change & ensure sustainable growth and green future. Thus, there is a significant need to prioritize investment in climate tech and sustainability. With an existing population of over 1.3 billion people, the demand for resources, infrastructure, and energy is likely to increase, thereby throwing challenges in the pathway of natural resources and the environment.

The pioneering goal of reducing greenhouse gas emissions by 33 to 35% by 2030 is achievable by investment in sustainable agriculture, clean energy technologies, green infrastructure, and circular economy models. These investments are likely to create thousands of jobs, boost energy efficiency, and create an eco-sustainable path.”

Stating further on the matter, Narendra Kumar added, “As per one of the recent studies, over $400 trillion capital is readily available on a global level to invest in environmental impact and climate tech. It has the potential to flow in India as a growth fund. India has set purposeful targets to increase the share of renewable energy in reducing emission intensity and expanding sustainable transportation options. Furthermore, the country looks forward to achieving 40% of its installed power capacity from significant renewable sources by 2030. Besides this, the country aims to reduce emissions intensity by 33 to 35% by 2030. Driving innovation in significant areas of the environment such as electric mobility, energy storage, and sustainable agriculture is crucial.”

What’s in Store for India’s & SEA's Climate Tech Sector?

In 2023, the market size of the climate tech sector in India and Southeast Asia (SEA) was recorded at $102 billion. With high hopes pinned on this sector, it is anticipated to grow to $350 billion at a CAGR of 20% by 2030, as per a report published in 2023. The government in India and SEA is making sustainable policy shifts. Adoption of emerging technologies such as vertical farming, sustainable accounting, electric mobility, and energy efficiency are likely to take place in the forthcoming years. About one-fifth of the largest corporations in the world are sticking to their commitment to net-zero emissions. India is marching ahead to accomplish its goal of net-zero emissions by 2070.

The boom for the climate tech sector in India is all set to happen in the next 10 to 20 years. It is noted that the electric vehicle market is disrupting the traditional automotive market in the current scenario. According to the sources, EV four-wheeler production is likely to grow at a 45% CAGR until 2030, and EV two-wheeler sales are likely to grow at a CAGR of 53%. Nowadays, business enthusiasts are inclined towards the environment and climate tech field and are interested in starting electric vehicle startups. Business consulting companies like Corpbiz are fulfilling the dreams of greenpreneurs by assisting them with company registration in India, contributing to the progress of the startup ecosystem, and maintaining sustainability.

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First Published : 21 Feb 2024, 04:26:09 PM