DPIIT, GEAPP Sign MoU to Boost Climate-Tech Startups Amid Funding Challenges

In a significant move to strengthen India’s climate-tech ecosystem, the Department for Promotion of Industry and Internal Trade (DPIIT) has partnered with the Global Energy Alliance for People and Planet (GEAPP). This collaboration aims to support and scale climate technology startups at a time when the sector is experiencing a slowdown in venture capital funding.

The memorandum of understanding (MoU) was signed as part of efforts to accelerate the country’s green transition through innovation and entrepreneurship. The partnership will focus on promoting startups that address clean energy, energy access, and sustainable industry development. It seeks to identify, support, and scale early-stage and growth-stage climate-tech ventures aligned with India’s net-zero goals.

As part of the MoU, GEAPP will act as a knowledge partner to Startup India, the DPIIT’s flagship initiative. It will collaborate with Startup India’s ecosystem stakeholders, including incubators, accelerators, and investors. The aim is to enhance capacities, create a more supportive environment for climate-focused startups, and facilitate investments to enable long-term viability.

The initiative comes at a critical time when funding for climate-tech startups globally has slowed. In 2023, climate-tech funding declined significantly, with India witnessing a similar trend. The DPIIT-GEAPP collaboration seeks to bridge this gap by providing technical support, mentoring, and policy advocacy to foster innovation. It will also encourage the adoption of scalable solutions that can be deployed across sectors such as renewable energy, energy storage, electric mobility, sustainable agriculture, and energy efficiency.

Through joint programs, knowledge sessions, and capacity-building initiatives, the partnership will aim to connect startups with investors and public sector stakeholders. This will help climate-tech companies navigate regulatory hurdles, access funding opportunities, and integrate with government-led sustainability missions.

The partnership will also support startups by mapping demand-driven use cases and creating frameworks for measuring climate and development impact. These measures are intended to ensure that the startups not only secure investment but also deliver measurable outcomes aligned with national climate commitments.

By focusing on systemic challenges and opportunities within the clean energy and sustainability domains, the DPIIT-GEAPP pact aims to create a more resilient and innovation-driven startup ecosystem. The approach includes developing inclusive models that benefit both urban and rural populations while driving economic growth and environmental resilience.

With the support of Startup India and its existing network, the MoU is expected to enable a wide outreach, providing a platform for startups to pilot, demonstrate, and scale solutions. The DPIIT’s role in policy facilitation, combined with GEAPP’s technical expertise and global network, is likely to provide strategic direction to emerging startups in this space.

In addition to direct support for startups, the collaboration will foster dialogues among stakeholders to address barriers to scaling climate-tech solutions. It will explore cross-sector collaborations and leverage private and public capital to accelerate deployment and commercialization of climate-friendly technologies.

The move aligns with India’s broader climate action strategy, including its commitment to achieving net-zero emissions by 2070. It is also in sync with global efforts to limit climate change through sustainable innovation and energy transition.

While the startup ecosystem in India has expanded over the past decade, climate-tech remains a niche yet critical segment. The DPIIT-GEAPP initiative marks a targeted intervention to nurture this sector amid macroeconomic uncertainties and changing investor priorities.

By leveraging public-private collaboration, this pact underscores the government's focus on fostering a green economy. It also seeks to position India as a hub for climate-tech innovation, supporting scalable solutions that can contribute to domestic and global sustainability goals.