New Delhi
India has emerged as a major opportunity in the growing global market for climate adaptation and resilience, offering a $24 billion investment chance, says a new report by Boston Consulting Group (BCG) and Temasek. This comes as global demand for climate solutions could rise to $1.3 trillion by 2030.
Despite rising climate risks, only $76 billion is spent worldwide each year on resilience efforts, mostly from government sources. Private investments, especially from private equity firms, can play a key role in filling this funding gap.
The report highlights fast-growing sectors for private investment, including flood defenses, wildfire protection, water-saving technology, and climate intelligence tools. These sectors can help manage climate risks while offering strong financial returns, with many showing potential for double-digit growth and profit margins as high as 40 per cent.
India stands out because of its high climate risk, making it a top priority for private investors. Kanchan Samtani from BCG said India’s exposure to climate threats creates strong demand for resilient solutions. Key investment areas include stormwater drainage, climate-proof construction materials, and new technologies for protecting crops from extreme weather.
There is also rising interest in smart water systems, emergency services using technology, and bio-based farming aids. These solutions are in demand not only among startups but also in larger companies already adding climate resilience to their operations.
The opportunity spans all investment stages—from early ventures to large-scale buyouts. With rising government support and public projects, experts believe private equity can make both profits and a meaningful climate impact in India’s resilience sector.
