07-05-2025
Amid $1.3 Trillion Global Climate Adaptation Surge, India Emerges as a $24 Billion Opportunity: BCG Report
As climate risks grow, a new investment frontier is emerging -- resilience. The need for climate adaptation and resilience (A&R) solutions is rising fast. Yet despite growing demand, private investment in A&R remains limited. A new report from Boston Consulting Group (BCG) and Temasek, The Private Equity Opportunity in Climate Adaptation and Resilience highlights a timely and compelling opportunity for private equity to lead the next wave of growth and impact.
The report projects that global demand for climate A&R solutions could reach $0.5 to $1.3 trillion by 2030. This opens a vast, largely untapped opportunity for private capital to invest in emerging value pools, from flood defense and wildfire protection to climate intelligence, and water efficiency technologies.
'Emerging markets, and India in particular, are at the forefront of climate vulnerability, therefore offering Climate Adaptation and Resilience opportunity for the Private Equity Industry. From the growing demand for stormwater drainage infrastructure and climate-resilient building materials to the rising adoption of abiotic stress-protection in agriculture, India is witnessing the formation of distinct value pools. The private equity ecosystem has an opening to scale solutions that combine strong unit economics with real-world resilience outcomes—whether it's in advanced water metering, tech-enabled EMS services, or bio-stimulant agri-inputs. As regulations and public procurement accelerate, the case for investing in India's climate resilience story is not just compelling—it's actionable.', said Kanchan Samtani, APAC Leader – Corporate Finance & Strategy & India Leader – Principal Investors & Private Equity, BCG.
Key findings from the report include:
CURRENT INVESTMENT: Despite the scale of existing need, the current global spending on A&R solutions is only estimated at $76 billion per year, and the vast majority stems from public sources. To meet the rising needs by 2030, there is an opportunity for private investment in the current gap.
HIGH-GROWTH SECTORS: Amongst many A&R opportunities, six example subsectors whereby private equity may deploy capital with double-digit growth rates, strong EBITDA margins (up to 30-40%), and increasing deal activity: climate intelligence solutions, resilient building materials, flood defenses, water efficiency, agricultural inputs, and emergency medical services.
INVESTMENT ARCHETYPES: Climate A&R companies span both early-stage pure plays and diversified incumbents where A&R is a growing revenue stream. While often seen as a startup space, the report surfaces a broader range of investable targets—opening the door to venture, growth, and buyout strategies across the spectrum.
