India is rapidly emerging as a key destination for climate capital, driven by rising demand for clean electric alternatives and a growing push from heavy industries towards 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.
“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.”
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.”
