India stands at a remarkable inflection point. As one of the fastest-growing economies in the world, we are building infrastructure, expanding cities, modernising agriculture, and improving the quality of life for millions. But alongside this progress, the country is also beginning to feel the pressure of a changing climate. Unseasonal rains, rising temperatures, and growing water stress are no longer future threats—they are part of our present reality.
As a vulnerable nation, and on the back of solidarity among developing countries to win an agreement on a loss-and-damage financing mechanism, India could urge that attention to the climate crisis is not diluted. (Shutterstock)
This is not just a story of strain. It is also one of potential. India has the opportunity to lead in climate innovation, creating solutions not only for itself but for the world. But turning this potential into reality requires more than ideas. It demands patient investment, institutional support, and a system that can help early-stage innovations mature, scale, and reach those who need them most.
The risks of inaction are well established. Scientific assessments show that India could lose nearly three per cent of its GDP by 2050 if it fails to adapt to climate realities. Over 600 million Indians currently face high water stress, and climate shocks could push more than 45 million into poverty within a decade. What makes this challenge even more urgent is the fact that every pillar of development--food, shelter, health, employment--is already feeling the pressure.
Yet, India’s growth continues to be powered by legacy models. The next twenty years will see our built-up area more than double, much of it in rapidly urbanising regions. This expansion, however, still depends heavily on carbon-intensive materials such as cement, steel, and conventional bricks. In the process, we risk hard-wiring emissions into our future. The construction sector alone emits more than 800 million tonnes of CO₂ annually, outpacing even some industrialised nations. Cooling demand is expected to multiply eightfold by 2037, and transport systems continue to prioritise road-based fossil fuel mobility. The longer we delay climate-aligned infrastructure choices, the more costly retrofits will become—both economically and ecologically.
But despite these challenges, climate innovation in India is on the rise. Investment in climate-tech has grown from just $100 million in 2015 to $3.7 billion in 2022. India is now among the top countries globally in renewable energy capacity. The ambition to produce five million tonnes of green hydrogen annually by 2030 reflects the kind of bold thinking the moment demands.
Still, a deeper look reveals an imbalance. Over 90% of climate funding flows into energy and mobility, while equally vital sectors like construction, agriculture, waste management, and cooling are left behind. These sectors are not only major emitters--they are also essential to India’s social and economic fabric. The buildings sector contributes over one-fifth of India’s emissions, but attracts less than one per cent of climate investment. Agriculture, which supports more than 40 percent of the country’s workforce, struggles with erratic rainfall, low yields, and rising input costs—yet receives only a fraction of the attention and capital it deserves. Waste continues to pile up in unmanaged landfills, releasing methane, one of the most potent greenhouse gases. The gap is not in ideas, but in translating those ideas into widespread, sustainable solutions.
The obvious question arises: If climate solutions exist, why aren’t they being adopted more widely?
One reason is that these solutions are often still in their early stages. While over 800 climate-tech startups operate in India, fewer than three percent make it past early-stage funding. Many technologies remain untested at scale, which makes established players hesitant to adopt them. In other cases, it is not the technology but the organisation itself that needs support. Young teams, fragmented supply chains, outdated regulations, and risk-averse procurement systems all create an ecosystem where even the most promising ideas struggle to survive.
The silver lining? The solutions are here--and they are working.
Scaling innovation is not just about money. It is about building trust, capacity, and resilience. Entrepreneurs need not only capital but also access to early adopters, strong management guidance, and mentorship to navigate the complex journey from lab to market. Climate solutions often require patient capital and multi-year support to prove their value. Without that, they fall into what is often called the ‘valley of death’--where innovation stalls before it can create meaningful impact.
Some examples are already showing what is possible. In the construction space, companies are using fly ash bricks, low-carbon cement, and even 3D-printed concrete to reduce emissions by up to 70%. In agriculture, technologies like solar-powered irrigation, AI-based crop advisory services, and regenerative farming practices are helping farmers improve yields and reduce their environmental footprint. In the waste sector, decentralised models are converting organic waste into biogas and fuel pellets, creating value out of what was once considered garbage. Cooling, too, is seeing progress through innovations like solar chillers and passive design methods that reduce electricity demand while improving comfort.
These are not just environmental solutions. They offer economic gains. Sustainable farming can generate returns several times the amount invested, through reduced fertiliser use, water savings, and lower insurance claims. Green buildings offer long-term energy savings. The market opportunity for such construction is valued at $1.4 trillion by 2030. If scaled effectively, these innovations could also unlock new jobs, improve public health, and make cities more liveable--particularly for those at the margins. The World Resources Institute estimates that a comprehensive decarbonization strategy could lead to net savings of ₹66 trillion by 2050. The IFC values India’s green buildings market at $1.4 trillion by 2030. Sustainable agriculture practices can generate between ₹3 and ₹7 in returns for every rupee invested--through lower fertiliser, water, and insurance costs.
One of the most untapped sources of support in this space is philanthropic and CSR capital. Positioned correctly, this funding can act as risk-tolerant, catalytic capital--supporting solutions in sectors and geographies where commercial investment remains limited. The HCL Group’s Aquapreneurs programme, for instance, backs early-stage entrepreneurs working on water resilience, offering not just funding but mentorship and market access. The India Climate Collaborative works with philanthropic funders to identify and accelerate impactful climate initiatives. Several localised programmes are also using philanthropic support to create open data platforms, climate risk maps, and behavioural nudges that help citizens and governments make informed decisions.
To make this scalable, philanthropy must work in partnership with the government. Public-sector platforms such as Smart Cities and AMRUT 2.0 can integrate low-carbon priorities and provide financing windows to support local innovation. Tier 2 and Tier 3 cities, where much of India’s new urban growth will occur, offer a significant opportunity to leapfrog into a climate-smart future if they are given the right technical assistance and institutional backing. With proper support, emissions from these urban expansions could be reduced by nearly half.
India’s net-zero transition is not a constraint, it is a catalyst. A CEEW-McKinsey study estimates that it could unlock up to $15 trillion in economic value by 2070. Clean energy and electric mobility alone could create over 3.5 million new jobs by 2030. Reducing fossil fuel dependence would not only cut pollution but also save trillions in energy imports.
India has no shortage of ideas, ambition, or talent. What we need now is resolve. A national platform that treats low-carbon growth not as a niche agenda but as the foundation for future development. That means building support systems that match the scale of our climate ambition—through capital, capacity, collaboration, and commitment.
This is the moment to shift the narrative. From urgency to opportunity. From pilot projects to permanent solutions. From idea to impact.
This article is authored by Sundar Mahalingam, president, strategy, HCL Group, and Gian Modgil, team lead, HCL ClimaForce Fund.
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