Latest news with #ThePrivateEquityOpportunityinClimateAdaptationandResilience
Hans India
07-05-2025
- Business
- Hans India
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.
Business Times
07-05-2025
- Business
- Business Times
BCG, Temasek see investment opportunities for private capital – in climate projects needing trillions in funds
[SINGAPORE] Yearly financing for climate adaptation and resilience projects could be between US$0.5 trillion to US$1.3 trillion by 2030, with the required amount growing even larger thereafter amid worsening extreme weather events, a report has found. The study, The Private Equity Opportunity in Climate Adaptation and Resilience, was launched by Boston Consulting Group and Temasek on Wednesday (May 7) at Ecosperity Week 2025, a sustainability event. The rising need for financing is evident, as 87 per cent of countries now have at least one national-level climate adaptation policy, strategy or plan in place, the report showed. Despite the growing expenditure, current global spending on climate solution projects is about US$76 billion a year, with public sources contributing the bulk of the amount. 'To meet the rising needs by 2030, there is an opportunity for private investment in the current gap,' the authors of the report said, also noting that the need for solutions is generating emerging value pools across value chains. Such projects range from flood defence and wildfire protection to climate intelligence and water efficiency technologies. A NEWSLETTER FOR YOU Friday, 12.30 pm ESG Insights An exclusive weekly report on the latest environmental, social and governance issues. Sign Up Sign Up Motivated to clear the misconception of climate projects being complex and nascent, lead author Daniel Oehling, a managing director and partner at BCG's Singapore office, said the report laid out the different types of investment opportunities in seven impact themes. Seven impact themes Food resilience Infrastructure resilience Health resilience Business and community resilience Water resilience Energy resilience Biodiversity resilience 'There are many companies that are sizable today, are specialised in what they do, highly profitable and fit to build for private industry networks,' he said. Examples with opportunities for both investments and exits include the flood defence business. In particular, the market for flood defence products, estimated at more than US$2 billion in 2024, would grow by 12 and 15 per cent at a compounded annual growth rate over the next five years. Its Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin is estimated at 20 to 30 per cent, based on the report. The segment is where several ventures, such as Germany's IBS Technics and Norway's AquaFence, are at different stages of growth. The report also identified five factors that can help private equity investors determine the most promising projects, and assess their attractiveness in both the short and medium terms. Five factors to identify the most promising investment opportunities today Current investment activity Future investment Ease of downstream financing Private-sector demand signals Public-sector demand signals Projects that have pulled in high levels of investment activity but are putting out weak forward-looking signals include smart-grid management and precision agriculture. On the other hand, projects in climate-resilient building design, as well as rainwater and run-off harvesting, are projecting strong forward-looking signals, but are getting limited investment traction. At the same time, the report also warns investors to be mindful of potential conflicts in the environmental outcomes of some solutions. For example, manufacturing of concrete and steel, while playing important roles in fortifying infrastructure assets against extreme weather, consumes large amounts of energy and carbon. 'Investors in solutions such as low-carbon concrete and green steel, which address both climate adaptation and resilience and other environmental objectives, stand to benefit more in the long term,' it said. Speaking at a panel at the launch of the report, Jay Koh, co-founder and managing director of climate-resilience focused private equity firm The Lightsmith Group, highlighted the importance of investing in scalable solutions now, 'so that 15 years from now, when that inevitable future has arrived, we have the solutions available at scale to try to combat that'.
Business Times
07-05-2025
- Business
- Business Times
Climate projects need trillions of dollars a year – these are investment opportunities for private capital: BCG, Temasek
[SINGAPORE] Yearly financing for climate adaptation and resilience projects could reach US$0.5 trillion to US$1.3 trillion by 2030, with the required amount growing even larger thereafter amid worsening extreme weather events, a report has found. The study, The Private Equity Opportunity in Climate Adaptation and Resilience, was launched by Boston Consulting Group and Temasek on Wednesday (May 7) at Ecosperity Week 2025, a sustainability event. The rising need for financing is evident, as 87 per cent of countries now have at least one national-level climate adaptation policy, strategy or plan in place, the report showed. Despite the growing expenditure, current global spending on climate solution projects is about US$76 billion a year, with public sources contributing the bulk of the amount. 'To meet the rising needs by 2030, there is an opportunity for private investment in the current gap,' the report's authors said, also noting that the need for solutions is generating emerging value pools across value chains. Such projects range from flood defence and wildfire protection to climate intelligence and water efficiency technologies. The report laid out the different types of investment opportunities in various impact themes. It also identified the factors that can help private equity investors determine the most promising projects, and assess their attractiveness in both the short and medium terms.
