Deploy patient capital to set off a revolution of green technology

Such funds could join smart regulation to propel green innovation and India's net-zero transition

- ALOKA MAJUMDAR

India stands at a pivotal juncture in its Viksit Bharat journey. To reconcile its developmental ambitions with its commitment to net-zero emissions, a CEEW 2025 report suggests that the nation must mobilize a staggering $4.1 trillion in investments over the next two decades.

While the economic prize is massive, estimated at $1.1 trillion in market value, many climate technologies struggle to secure the capital, investor confidence or policy support needed to move from pilot stage to adoption.

Traditional market approaches are not supporting green innovations. Early-stage solutions in the circular economy and bio-economy are frequently seen as too risky for commercial banks. To address this, donors needs to go beyond traditional philanthropy and act as ‘learning partners,’ providing patient capital and blended finance to help prove these models.

Many high-potential value chains in the green economy are capital-intensive and at a low level of market maturity. Unlike mature sectors like utility-scale solar energy, which now attracts international lenders, nascent sectors such as bio-based packaging or lithium-ion battery (LIB) recycling face high upfront capital expenditure and finance costs.