August 4, 2025

Mumbai is emerging as a critical hub for climate capital, fueled by a growing demand for clean electric alternatives and an industrial push towards zero-emission technologies. Recent data from Bloomberg New Energy Finance (BNEF) indicates that India has attracted over $2 billion in climate-focused capital in just the past year. As India continues to address its energy needs, major climate investors such as TPG Rise Climate, Breakthrough Energy Ventures, LeapFrog Investments, Lowercarbon Capital, and Fullerton Fund Management are shifting from cautious pilot projects to significant investments in the country’s energy and clean technology sectors. This trend underscores the urgent need for environmentally friendly solutions and the favorable conditions facilitating these shifts, including cost parity between renewable and traditional energy sources, increased consumer demand, and supportive government policies. The demand for clean energy in India is largely driven by essential services—ranging from logistics to cooling solutions and distributed power systems—rather than just discretionary consumption. Industry experts suggest that this pivotal shift enhances investors' confidence in the sustainability of these initiatives as well as the potential for long-term growth. Nakul Zaveri, a partner and co-head of Climate Investment Strategy at LeapFrog Investments, notes there is a significant increase in growth and infrastructure investments focusing on platform developments in areas like circular economy solutions, electric mobility, and battery management. LeapFrog plans to commit over $500 million to such climate solutions, with backing that includes a $60 million investment from the European Investment Bank (EIB) and support from organizations like the International Finance Corporation (IFC) and Temasek. On a global scale, climate financing surpassed $2 trillion in 2024, indicating a substantial influx of private capital into sectors such as electric mobility, battery storage, and green infrastructure—further demonstrating the trend towards sustainable investments. Notably, Singapore-based Fullerton Fund Management has made significant strides by acquiring an equity stake in Routematic, an AI-driven corporate transport company in India, as part of their Fullerton Carbon Action Fund. Akhil Jain, the investment lead at Fullerton Carbon Action Fund, believes that climate finance in India is set to surge, increasingly influenced by market economics. He emphasizes that clean energy, along with key segments of electric transport, is now reaching or exceeding cost parity with conventional options, thereby reshaping the landscape for investment. Investors are now gravitating towards companies that have strong revenue models and innovative proprietary technologies—especially within low-emission and resource-efficient sectors like transport and energy. Climate Angels, led by Shailesh Vickram Singh, is among those investing strategically, having supported 22 startups in the electric vehicle, clean air, and climate tech sectors in recent years. The shift in priorities towards integrated operators, rather than isolated innovations, is notable—these operators are equipped to create comprehensive value chains and deliver robust, scalable infrastructures. As Zaveri points out, what was previously viewed as high-risk is now gaining premium recognition, especially for companies implementing climate strategies at an extensive scale. This transformation mirrors a broader understanding of the necessity for resilience in climate solutions. Companies that focus on reducing emissions while enhancing adaptive capacities are now more appealing to investors. Vasudha Madhavan, the founder and CEO of Ostara Advisors, articulates the focus on sectors such as waste management, cooling technology, and mobility solutions. Industry leaders agree that we are witnessing a pivotal moment in climate finance in India. Over the next few years, the focus is expected to deepen on scalable technologies capable of revolutionizing high-emission sectors. Madhavan emphasizes that this period marks a significant transition from fragmented investments towards large-scale strategic investments that can effectively accelerate the clean energy transition. This evolving investment landscape indicates a bright future for sustainable growth in India and beyond.

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Tags: Climate capital, Clean energy, Electric mobility, Investment, Sustainability,