What Climate-Tech Startups in India Need to Do Differently: A Path Towards Sustainability and Green Jobs

India is standing at a crossroads when it comes to sustainability. With the climate crisis intensifying, there’s a growing need for innovative solutions that can tackle pressing environmental challenges. Climate-tech startups, the unsung heroes in this fight, are playing a pivotal role in driving sustainable change. But despite the potential, the path to success in the Indian climate-tech landscape is far from simple.

If you’re a climate-tech entrepreneur or planning to start a venture in India, it’s essential to recognize the unique challenges and opportunities that lie ahead. In this research post, we’ll explore what climate-tech startups in India need to do differently to scale, thrive, and contribute meaningfully to a green economy. We’ll also touch on the emerging job market in the green sector, offering insights for professionals looking to work in this space.

1. Understanding the need for Climate-Tech Startups

India is experiencing increasingly severe temperature rises, with heatwaves becoming more frequent and intense, especially in its northern and central regions. According to the India Meteorological Department, the country has seen a noticeable increase in average temperatures over the last few decades, leading to higher energy demands, water shortages, and devastating impacts on agriculture and public health. This escalating climate crisis calls for immediate action, and climate-tech solutions offer a beacon of hope. From cooling technologies and renewable energy systems to water conservation innovations, the need for scalable, sustainable solutions has never been more urgent. Climate-tech can help mitigate these rising temperatures, reduce carbon emissions, and build resilience against the impacts of a warming climate, making it crucial for India's future. The chart below by data journalist Katharina Buchholz explains how India's temperatures are diverging substantially. In fact, in April 2023, India experienced a heatwave which was described by an IPCC (Intergovernmental Panel on Climate Change) researcher as "testing the limits of human survivability". This underscores the need and importance of climate-infrastructure in the country,

Image shows divergence of India's temratures through the time period. (By Katharina Buchholz)

2. Embrace the Local Context

India’s climate-tech startups often face the temptation to follow global trends and replicate solutions that have worked elsewhere. However, India’s challenges are unique, and a one-size-fits-all approach may not work here. From urban heat islands to agricultural emissions, from water scarcity to waste management, the problems we face demand locally tailored solutions.

What needs to be done differently? Climate-tech startups must understand the local context deeply—both in terms of geography and socio-economic conditions. For example, solutions that work in Western countries may not always be affordable, scalable, or culturally acceptable in India. Instead, focusing on affordability, scalability, and accessibility is crucial.

Startups should engage with local communities, learn from indigenous practices, and collaborate with regional experts to develop solutions that address real, ground-level challenges.

Key takeaway: Think global, act local. Leverage local knowledge and create solutions that work specifically for the Indian market.

3. Build Robust, Scalable Business Models

Sustainability and profitability don’t have to be at odds, but building a climate-tech startup that is both impactful and financially sustainable is no small feat. A common mistake many startups make is to focus purely on the technology and ignore the business model. While innovative technology is crucial, it’s the scalability and financial viability that will determine the long-term success of these companies.

Climate-tech startups in India must focus on business models that are not only innovative but also scalable and market-oriented. Startups should look beyond just providing a technology solution and think about how to create value for the customer at scale. Building strong distribution channels, forging strategic partnerships, and identifying potential revenue streams early on can help ensure the longevity of a green business.

A few examples of scalable climate-tech solutions in India include solar energy systems, electric vehicle (EV) infrastructure, and water purification technologies. These sectors offer massive opportunities for scaling up, provided the startup models are financially viable and widely adopted.

Key takeaway: Create a business model that’s both sustainable and profitable. Focus on scalability to reach a larger market and build long-term financial stability.

4. Collaborate and Partner with Governments and NGOs

While India has made significant strides in renewable energy and sustainability, the government and non-governmental organizations (NGOs) still play an essential role in advancing the green agenda. Many climate-tech startups struggle to navigate the complex regulatory landscape and access government funding or incentives.

Startups must build strong relationships with both public and private sectors. Partnering with governments and NGOs can open up opportunities for grants, subsidies, and regulatory support. Additionally, these collaborations can help startups align their products with government priorities and sustainability goals.

In India, schemes like the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM) and Atal Mission for Rejuvenation and Urban Transformation (AMRUT) provide crucial financial and policy support for renewable energy and water conservation projects. Understanding these initiatives and integrating them into business strategies can make a significant difference.

Key takeaway: Leverage the support of governments and NGOs. Seek funding opportunities and regulatory support to scale your startup.

5. Prioritize Impact Measurement and Transparency

The global conversation around sustainability has evolved. It’s no longer enough to just claim that your startup is “green” or “sustainable.” Today’s investors, consumers, and governments want to see real, measurable impact. For a climate-tech startup, this means being transparent about the environmental and social impacts of their technology or solution.

Companies can invest in impact measurement frameworks to quantify the positive changes they are making. This includes tracking reductions in carbon emissions, energy savings, water conservation, or improvements in waste management. Clear and transparent impact data can help build trust with stakeholders and attract impact investors who are looking for verifiable outcomes.

Platforms like B Corp certification and Global Reporting Initiative (GRI) standards offer frameworks for measuring sustainability impact. These certifications help build credibility and showcase commitment to environmental and social responsibility.

Key takeaway: Prioritize impact measurement and transparency. Be open about the real-world benefits of your products and services.

6. Innovate in Funding and Financial Models

Financing remains a major bottleneck for many climate-tech startups in India. Traditional venture capital (VC) firms are often reluctant to invest in green tech ventures due to perceived risks and the long timelines needed to see a return on investment. However, with the green economy booming globally, alternative financial models are gaining traction.

Alternative funding options should be explored, such as blended finance, impact investing, and crowdfunding. Additionally, tapping into global funding opportunities like the Green Climate Fund or Indian Renewable Energy Development Agency (IREDA) can offer a way to bridge the financing gap. Also, startups should build strong financial models that make their long-term sustainability financially attractive to investors.

Collaborating with development banks, international climate organizations, and green financial institutions can unlock new avenues of funding and resources.

Key takeaway: Don’t rely solely on traditional funding models. Explore innovative and blended financing options to fuel growth.

7. Foster a Green Talent Pool: The Role of Climate-Tech Startups Jobs in India

While innovation and technology are crucial for climate-tech success, people are the real driving force behind these advancements. To accelerate the growth of the green economy, there’s a pressing need to build a robust climate-tech talent pool.

India has a huge opportunity to tap into a rapidly growing green jobs market, both locally and globally. From engineers to environmental scientists, business development professionals to regulatory experts, there’s a need for skilled talent across various sectors of the green economy. Climate-tech startups must actively contribute to the training and development of green talent, creating more employment opportunities in this emerging sector.

By working with academic institutions, training centers, and NGOs, startups can build capacity for green jobs and skill development in emerging fields like renewable energy, sustainable agriculture, water conservation, and green manufacturing. By prioritizing talent development and creating a supportive work environment, startups can attract and retain the next generation of innovators.

Moreover, companies that offer remote or hybrid work models can tap into India’s vast pool of tech-savvy talent, allowing them to scale quickly and efficiently.

Key takeaway: Build a green talent pipeline. (By following www.greenjobsindia.in) Invest in training and development to support the growing demand for skilled professionals in the climate-tech sector.

8. Focus on Consumer Education and Awareness

Despite the growing awareness of climate change, many consumers still don’t fully understand the long-term benefits of climate-tech solutions. This gap in awareness can hinder the adoption of sustainable products and services.

They must invest in consumer education and awareness campaigns that clearly communicate the value and impact of their solutions. Whether it's through digital marketing, community outreach, or collaborations with influencers, educating consumers about the environmental and economic benefits of green technologies can boost adoption and loyalty.

Creating clear, digestible content on how your product or service works, its environmental benefits, and its cost-effectiveness is essential in winning over customers and stakeholders.

Key takeaway: Invest in consumer education. Help potential users understand the benefits of adopting sustainable practices and products.

Conclusion

India’s climate-tech sector is filled with promise. But for startups to thrive and make a lasting impact, they must navigate the complexities of local challenges, build scalable and sustainable business models, and foster talent that can drive change. By focusing on localization, partnerships, impact transparency, and financial innovation, startups can unlock immense potential for growth while contributing to a green economy.

Furthermore, as the demand for climate-tech solutions grows, the green jobs market in India will only expand. If you’re a professional with the right skills and passion for sustainability, there’s no better time to explore opportunities in this sector. Startups in India need talent—engineers, project managers, business development specialists, and environmental experts—to scale their solutions and create lasting impact.

At Green Jobs India, we’re dedicated to connecting talented professionals with climate-tech startups working on solutions that will shape the future of sustainability. Whether you’re a job seeker or an employer looking to build a team of passionate individuals, we’re here to help you make those meaningful connections.

Together, we can build a sustainable future—one green job at a time.