Time to rethink capital for sustainability
India's emergence as the world's fourth-largest economy reflects strong domestic demand and a rapidly growing entrepreneurial landscape. However, this growth is occurring against a backdrop of mounting environmental pressures. Air pollution levels in major cities routinely exceed safe limits, over 3,500 landfills dot urban India (CPCB, 2022), and increasingly erratic climate events threaten food and water security. The need to transition to a more resource-efficient, low-carbon economy is no longer a matter of debate, but of urgency.
Tech-led innovation will be central to India's circular transition. From alternative materials and clean manufacturing to waste-to-value solutions, climate-tech solutions offer scalable pathways to decarbonise industries and strengthen climate resilience. However, many of these innovations do not conform to conventional investment frameworks. Traditional ROI models prioritise near-term financial returns and proven markets. In contrast, climate-tech ventures often require longer gestation periods, operate in nascent ecosystems, and deliver multi-dimensional returns--economic, environmental and social.
To bridge the gap between innovation and implementation, India needs more catalytic capital; funding that is flexible, risk-tolerant, and impact-oriented. This is especially critical for early-stage climate-tech enterprises that operate in complex, unstructured markets. Consider Brisil Technologies, which upcycles rice husk ash, an agri-waste by-product known for exacerbating PM levels into high-purity green silica for use in rubber and paints. Or altM, which converts agricultural residue into renewable feedstock for chemical manufacturing, replacing the use of petrochemicals. Another case in point is Alt Carbon, whose enhanced rock weathering solution addresses the need to permanently remove atmospheric carbon.
While the markets that these innovations operate in are still maturing, the long-term environmental value is significant. These are compelling business models that solve for national priorities while representing the frontier of India's circular economy, and investors backing such ventures must be prepared for non-linear growth trajectories and long-term capital commitment. Beyond just venture capital, blended finance models, milestone-based grants, and anchor investments from development finance institutions (DFIs) can help unlock scale.
To accelerate India's circular economy transition, capital allocation must evolve along five key lines:
India's path to net-zero by 2070 will require more than technology; it will require an investment architecture that recognises and rewards circular, regenerative models. The circular economy is not just an environmental imperative, it is an economic one. Bringing circularity into the mainstream isn't just about cutting emissions or reducing waste, it's about reshaping India's growth trajectory. According to the MoEFCC, a circular economy could unlock a market opportunity exceeding $2 trillion by 2050 and create ~10 million additional jobs.
This article is authored by Alankrita Khera, director, and Sruthi Shanmugam, lead, ACT For Environment.
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Hindustan Times
6 days ago
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Time to rethink capital for sustainability
India's emergence as the world's fourth-largest economy reflects strong domestic demand and a rapidly growing entrepreneurial landscape. However, this growth is occurring against a backdrop of mounting environmental pressures. Air pollution levels in major cities routinely exceed safe limits, over 3,500 landfills dot urban India (CPCB, 2022), and increasingly erratic climate events threaten food and water security. The need to transition to a more resource-efficient, low-carbon economy is no longer a matter of debate, but of urgency. Tech-led innovation will be central to India's circular transition. From alternative materials and clean manufacturing to waste-to-value solutions, climate-tech solutions offer scalable pathways to decarbonise industries and strengthen climate resilience. However, many of these innovations do not conform to conventional investment frameworks. Traditional ROI models prioritise near-term financial returns and proven markets. In contrast, climate-tech ventures often require longer gestation periods, operate in nascent ecosystems, and deliver multi-dimensional returns--economic, environmental and social. To bridge the gap between innovation and implementation, India needs more catalytic capital; funding that is flexible, risk-tolerant, and impact-oriented. This is especially critical for early-stage climate-tech enterprises that operate in complex, unstructured markets. Consider Brisil Technologies, which upcycles rice husk ash, an agri-waste by-product known for exacerbating PM levels into high-purity green silica for use in rubber and paints. Or altM, which converts agricultural residue into renewable feedstock for chemical manufacturing, replacing the use of petrochemicals. Another case in point is Alt Carbon, whose enhanced rock weathering solution addresses the need to permanently remove atmospheric carbon. While the markets that these innovations operate in are still maturing, the long-term environmental value is significant. These are compelling business models that solve for national priorities while representing the frontier of India's circular economy, and investors backing such ventures must be prepared for non-linear growth trajectories and long-term capital commitment. Beyond just venture capital, blended finance models, milestone-based grants, and anchor investments from development finance institutions (DFIs) can help unlock scale. To accelerate India's circular economy transition, capital allocation must evolve along five key lines: India's path to net-zero by 2070 will require more than technology; it will require an investment architecture that recognises and rewards circular, regenerative models. The circular economy is not just an environmental imperative, it is an economic one. Bringing circularity into the mainstream isn't just about cutting emissions or reducing waste, it's about reshaping India's growth trajectory. According to the MoEFCC, a circular economy could unlock a market opportunity exceeding $2 trillion by 2050 and create ~10 million additional jobs. This article is authored by Alankrita Khera, director, and Sruthi Shanmugam, lead, ACT For Environment.
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