Why India’s climate-tech entrepreneurs need a stronger ecosystem

This article is authored by Woochong Um, CEO, Global Energy Alliance for People and Planet (GEAPP).

India’s climate-tech landscape is brimming with potential and possibilities. Just this year, the largest battery storage system in South Asia was installed in Delhi, and it is now enhancing energy access for over 100,000 consumers. A key facilitator in bringing this project to life was AmpereHour Energy, a startup launched just eight years ago with a vision to transform India’s energy landscape with intelligent storage solutions. In these eight years, AmpereHour has received global recognition and funding, a testament to the grit and ingenuity that define India’s new generation of climate innovators. And they are not alone.

FILE -- Steam rises from the coal-fired power plant near wind turbines Niederaussem, Germany, as the sun rises on Wednesday, Nov. 2, 2022. Germany cut its greenhouse gas emissions by almost 2% last year, beating previous estimates but still falling far short of the cuts needed to meet its medium-term climate goals. (AP Photo/Michael Probst, file)(AP)

Across the country, bold new ideas are reimagining energy, livelihoods, and inclusive growth. Yet for this spirit to translate into impact, India’s startup ecosystem must evolve. Currently, only about 3% of Indian start-ups secure Series B funding or beyond. Even though investments in climate tech startups surged to $ 2.4 billion to $ 3.4 billion between 2021 and 2023, funding dropped again in 2024 to $ 1.3 billion. When we look beneath these dwindling numbers, we find a disconnect in the entrepreneur-investor paradigm and deep-seated problems in the ecosystem.

Early-stage entrepreneurs find themselves in a double bind. Without patient capital, they can’t test and refine their ideas. Without proof of scale, investors are hesitant to back innovations with long gestation periods. With too few testing grounds, patchy policy support, and scarce mentorship, many promising ideas stall before they ever reach the market. Innovation is celebrated on stage but too often gets stranded in reality.

To unlock India’s green energy potential and materialise the Viksit Bharat vision, we have to go beyond theory to change things on the ground. This means expanding testing grounds for startups across the country, creating pathways for venture debt and blended finance, streamlining regulations, and offering structured, non-dilutive support to entrepreneurs willing to take bold risks in solving climate challenges.

We don’t need to reinvent the playbook. Countries like Japan and South Korea are showing us what’s possible when startups are backed with clarity and conviction. Japan’s J-Startup programme and South Korea’s $1.9 billion investment plan show how coordinated public–private support can accelerate climate-tech innovation.

What these frameworks share is a patient, coordinated approach that aligns policy, capital, and leadership. Innovators, investors, and policymakers must work together. This is essential to nurture and prepare disruptive ideas for the long run, close the gap between the expectations of investors and the needs of innovators, and also align ideas with real-world problems. For instance, the recent focus on AI and digitalisation in innovation challenges such as ENTICE 2.0 is closely aligned with India’s urgent need to modernise grid infrastructure and build stronger digital public infrastructure.

But such initiatives are just one step. To match the ambition of our entrepreneurs, India must expand these platforms nationwide. Supporting them is not optional, it is a strategic imperative. If we act with urgency and conviction, India can emerge as the world’s innovation hub for a clean energy future.

This article is authored by Woochong Um, CEO, Global Energy Alliance for People and Planet (GEAPP).