There is a further push for investments in climate tech, on the back of more efficient technology, deeper research, and increasing development capabilities.
Elections are among the most important events in a democracy, and it impacts pretty much everything on which the nation runs. While it directly affects the stock market, it is also important for a country’s political sentiment and economic stability. Typically, investors closely monitor the outcome of the election to understand market dynamics, and they tend to time or gauge the market accordingly.
In an era when climate tech investment is fast catching up, it would be worthwhile to find out about such investments on the occasion of World Environment Day today.
Over the last one year and three months, investors such as Blume Ventures, and Leo Capital, and new players like Synapses have been betting big on climate tech start-ups. Even global investors are looking to invest in climate tech companies.
According to Venture Intelligence data, climate tech start-ups raised around $157 million in 2023 across 52 deals. In the January-April period of 2024, such start-ups raised $45 million through 12 transactions.
According to a Bloomberg report in May 2024, Eversource Capital, which closed India’s largest climate impact fund in 2022, plans to raise at least $1 billion for a new fund to support companies in the water, food, agri-chain, and recycling sub-segments of the broader climate theme.
According to experts and industry leaders, the election could usher in policies that further encourage the use of renewable energy, expand the electric vehicle (EV) market, and streamline drone delivery operations, all contributing to India's climate investment efforts.
Says Manoj Tulsian, CEO and joint managing director (JMD), Greenply Industries, an interior infrastructure company: “As highlighted by reports from the World Economic Forum, a significant majority of Indian corporate leaders recognise sustainability as a powerful force for progress. India’s sustainable growth is essential to elevate living standards and fulfil the aspirations of millions. While achieving net-zero emissions by 2070 requires significant investment, we are confident that the elected government will prioritise climate action. This will require, a comprehensive set of guidelines and mandates to ensure we are collectively moving the needle on sustainability, more so for those industries that rely heavily on natural resources.”
Says Vishwachetan Nadamani, chief operating officer, Ecom Express, an end-to-end technology-enabled logistics solutions provider to the Indian retail and e-commerce industry: “It is expected that new policies will be introduced to make solar energy more affordable. This could result in a reduction in the cost of solar panels, making it easier for companies and individuals to invest in solar power. There is likely to be a bigger push for rolling out electric vehicles with greater capacity and longer range. This would support the adoption of EVs on a larger scale, reducing dependency on fossil fuels and cutting down on pollution, aligning with the government's efforts to promote advanced electric vehicles, which supports our sustainability initiatives.”
According to Nadamani, ECom Express is making huge investments in green initiatives at all their hubs, processing centres, and other facilities. It is installing solar panels at its Jaipur and Farukh Nagar facilities in a bid to company’s carbon footprint and support the global goal of sustainable development. It has deployed 200 compressed natural gas (CNG) and electric vehicles (EVs) in its operations and plans to add 200 more. It is also doing drone delivery trials in Gurugram and plans to expand to other cities.
He adds: “The government has already established a supportive regulatory environment for drone deliveries. With the Drone Rules 2021 and the Digital Sky Platform, obtaining a drone license and managing drone operations have become easier. Government initiatives could further enhance these regulations, promoting wider use of drones for e-commerce, which can significantly reduce carbon emissions from traditional delivery methods.”
Sameer Gupta, chairman and managing director, Jakson Group, an energy and infrastructure solution company says that considering the global urgency to address climate change, the impact of election results on investment in new-age and carbon neutral technology and projects is unlikely.
“We are confident that the new government will maintain its focus on reducing carbon emissions and investing in climate solutions, advancing our journey towards sustainable development, for a brighter future,” Gupta says.