The Next Big Opportunity for Impact and Profit Startups are proving that environmental solutions can drive significant economic returns
By Ankit Kedia
Opinions expressed by BIZ Experiences contributors are their own.
You're reading BIZ Experiences India, an international franchise of BIZ Experiences Media.
India's climate tech sector is buzzing with activity, boasting over 800 operational startups and raising USD 3.6 billion between 2014 and 2024. These ventures are not just building solutions but reshaping industries—from e-waste management to renewable energy infrastructure. Here are some of the standout trends from 2024 that hold valuable lessons for investors and BIZ Experiencess alike.
GREEN HYDROGEN:
Green hydrogen is no longer a concept confined to R&D labs; it is becoming a cornerstone of India's energy transition. Backed by the National Green Hydrogen Mission (NGHM), startups are tackling challenges around production efficiency, storage, and industrial adoption. One of the most exciting developments is the application of green hydrogen in hard-to-abate industries like steel and cement. Startups are leveraging advanced electrolysers and renewable energy integration to make processes like direct iron ore reduction viable. Even in the logistics sector, hydrogen fuel cells are now powering long-haul freight.
E-WASTE AND BATTERY RECYCLING:
As EVs, drones, and consumer electronics proliferate, so does the pressing issue of e-waste. The ewaste market, valued at over USD 2 billion today, could exceed USD 15 billion by 2030. Startups are responding with cutting-edge recycling technologies like hydrometallurgy and pyrolysis to recover raw materials from discarded batteries. There are founders who are scaling their operations while maintaining material purity. It is a challenging balance, but those who can close the loop in the circular economy will undoubtedly lead the pack. For investors, the lesson is clear: the businesses that marry innovation with operational efficiency will thrive.
BIODERADABLE CONSUMER PRODUCTS:
Sustainability is becoming personal, and consumers are voting with their wallets. Startups developing biodegradable dinnerware, packaging, and everyday essentials are no longer niche players; they are mainstream disruptors. There are stories that illustrate how consumer preferences, amplified by social media, are accelerating the adoption of eco-friendly products. Regulatory pressures and rising awareness will only further bolster this market, making it ripe for investment.
RENEWABLE ENERGY INFRASTRUCTURE:
India's target of 500 GW non-fossil fuel capacity by 2030 is ambitious but achievable. However, the path forward requires more than building solar and wind farms; it demands robust energy storage and grid infrastructure to address intermittency issues. Startups are pioneering solutions in advanced lithium-ion batteries, solid oxide fuel cells, and even thermal energy storage. This year, a thermal energy startup in South India caught my attention with its innovative approach to capturing and storing surplus solar power for use in industrial applications. It is a reminder that renewable energy investments are as much about infrastructure as they are about generation.
INVESTING WITH PURPOSE:
The overarching takeaway from 2024's climate tech trends is that sustainability has become a business imperative. Startups are proving that environmental solutions can drive significant economic returns. For investors, this is more than an opportunity; it is a responsibility. What's exciting is the dual promise of this sector: financial rewards and societal impact. The question is not whether we should invest in climate tech; it is how quickly we can scale solutions that matter.
