India ranked 9th in VC funding for climate tech globally: Report

According to a report published by London & Partners and Dealroom.co, India ranks at the ninth spot globally for climate tech investment, with the country's climate tech businesses receiving US$ 1 billion in venture capital funding between 2016 and 2021.

Venture capital (VC) investment in climate technology companies has been rising worldwide since 2016, as per the report mutually prepared by international trade promotion agency London & Partners and Amsterdam-based database management company Dealroom.co.

Global climate tech venture capital investment surged from US$ 6.6 billion in 2016 to US$ 32.3 billion in 2021, a rise in funding by almost five times, the research disclosed.

“2021 investment levels have already surpassed the whole of 2020 for global climate tech investment, representing the importance of the global tech industry in the fight against climate change,” stated the report, which examines technology businesses operational to reduce greenhouse gas emissions or addressing the impacts of climate change.

The top 10 countries for climate tech VC investment between 2016 and 2021 are - US (US$ 48 billion), China (US$ 18.6 billion), Sweden (US$ 5.8 billion), UK (US$ 4.3 billion), France (US$ 3.7 billion), Germany (US$ 2.7 billion), Canada (US$ 1.4 billion), Netherlands (US$ 1.3 billion), India (US$ 1 billion) and Singapore (US$ 700 million).

“Europe is the blooming region globally for climate tech, with European VC investment into climate tech businesses seven times higher this year than in 2016 (up from US$ 1.1 billion to US$ 8 billion).

“In Europe, London is one of the world's most innovative ecosystems for climate tech, with its startups raising US$ 3.3 billion since 2016, reporting for 16% of Europe's total. London has 416 climate tech companies, the largest hub in Europe,” the report added.

Mr. Hemin Bharucha, Country Director India, London & Partners, stated that countries around the globe should work together “so that we can mutually change business practices and pledge to net zero emissions.”

The global tech industry plays a crucial role in propelling this global transformation and this is exhibited in the fast growth of VC investment into global climate tech companies, Mr. Bharucha stated.

Future growth looks robust for London's climate tech sector, with the UK capital ranking second globally behind the Bay Area for the number of funding rounds raised by climate tech startups, exhibiting an active early-stage ecosystem, the report added further.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.