Sustainable Infrastructure and Climate Tech

Why in News?

India’s commitment to sustainable development and climate technology was prominently showcased at the inaugural Indo-Pacific Economic Framework for Prosperity (IPEF) Clean Economy Investor Forum.
Held recently, the event was a significant milestone, bringing together investors, companies, and policymakers from the Indo-Pacific region to mobilize investments in sustainable infrastructure, climate technology, and renewable energy projects. India’s commitment to sustainable development was prominently showcased, including discussions on the potential internationalization of the Indian Rupee to facilitate investments in clean energy and climate technology.

The Indian delegation, led by Commerce Secretary Shri Sunil Barthwal, played a pivotal role in the forum.
Barthwal’s leadership emphasized India’s vast investment potential, particularly in the clean energy sector.
During his address, Barthwal highlighted India’s significant investment opportunities, amounting to over USD 500 billion by 2030, in areas such as renewable energy, green hydrogen, and electric vehicle infrastructure.

He also stressed the recent reforms aimed at improving the ease of doing business in India, which have created a more conducive environment for investment and innovation.

The forum served as a unique platform, bringing together more than 300 participants, including financial institutions, multilateral development banks, venture capital funds, project owners, entrepreneurs, and government agencies from IPEF partner countries.
The event was divided into two main engagement tracks: Sustainable Infrastructure and Climate Tech.

In the Sustainable Infrastructure track, four Indian companies were shortlisted to pitch their innovative concepts to global investors. These companies included:
- ReNew Power: A leading renewable energy company focusing on solar and wind energy projects.
- Avaada Energy Pvt. Ltd: Specializes in solar energy solutions and aims to drive sustainable growth through clean energy.
- Indusbridge Capital Advisors LLP: Founder of SEIP, focusing on energy transition projects.
- Powerica Limited: Engages in energy solutions and has significant contributions in the waste management sector.
Their pitches centered on energy transition, transport and logistics, and waste management/waste-to-energy projects, demonstrating India’s capability and commitment to advancing sustainable infrastructure.

In the Climate Tech track, ten Indian start-ups were selected to present their innovative solutions for mitigating and adapting to climate change. These start-ups included:
- BluSmart: An electric ride-hailing service that aims to reduce urban pollution.
- Recykal: Provides digital solutions for waste management and recycling.
- LOHUM: Focuses on battery recycling and manufacturing.
- Sea6 Energy: Innovates in seaweed-based products for sustainable agriculture and energy.
- EVage Ventures Private Limited: Develops electric commercial vehicles.
- Kabira Mobility Private Limited: Specializes in electric two-wheelers.
- Batx Energies Private Limited: Works on advanced energy storage solutions.
- Newtrace and Alt Mobility: Focus on green hydrogen production and mobility solutions.
- igrenEnergi, Inc.: Innovates in energy management systems.
These companies showcased India’s growing prowess in climate technology and clean energy, reinforcing its position as a hub for innovation in the green sector.

The forum was highly successful, resulting in USD 23 billion in investment opportunities for sustainable infrastructure projects in the Indo-Pacific region.
It also highlighted the vast capital availability, with coalition members having over USD 25 billion ready to be deployed in emerging market infrastructure investments.
The U.S. International Development Finance Corporation (DFC) announced an equity investment as part of the USD 900 million Eversource Climate Investment Partners II fund.
This fund will provide capital, management, and expertise to innovative companies addressing climate change in India and Southeast Asia.
Additionally, the IPEF Catalytic Capital Fund was launched, with founding supporters like Australia, Japan, the Republic of Korea, and the United States contributing USD 33 million in initial grant funding to catalyze up to USD 3.3 billion in private investment.
This fund aims to support quality, resilient, and inclusive clean economy infrastructure projects in emerging and upper-middle-income economies.

The forum also witnessed the signing of significant agreements. One notable agreement was the Offtake Agreement between Sembcorp Green Hydrogen India Private Limited, Kyushu Electric, and Sojitz.
This agreement aims to produce and export 200 KTPA of green ammonia from India to Japan, with a total production capacity of 800 KTPA planned in four phases.
This project aligns with India’s National Green Hydrogen Mission and aims to position India as a global hub for green hydrogen production and export.

The event featured addresses from ministers of IPEF member countries, participation from top fund houses, insightful panel discussions, and pitching sessions from infrastructure companies and climate tech start-ups.
Key topics discussed included sustainable infrastructure investment for a resilient future, bridging the gap between innovators and investors, and trade and investment policies for sustainable growth.

Shri Rajesh Agrawal, Additional Secretary, Department of Commerce, and India’s Chief Negotiator for IPEF, highlighted how the IPEF agreements would facilitate investments, concessional financing, joint collaborative projects, workforce development, and technical assistance.
These measures are particularly aimed at integrating Indian companies, especially MSMEs, into the value chains of the Indo-Pacific region.
The forum provided a valuable opportunity for Indian companies and start-ups to seek funding and collaborate with global investors, further aiding India’s goal of achieving net-zero emissions by 2070.

The inaugural IPEF Clean Economy Investor Forum was a landmark event, emphasizing India’s significant role in driving sustainable development and climate technology in the Indo-Pacific region. With substantial investment opportunities, strategic partnerships, and a focus on innovation, India is poised to become a global leader in the clean economy sector.
The forum not only highlighted India’s potential but also provided a platform for collaboration and growth, paving the way for a sustainable future.