Climate equity funding slows in first half of 2025: Report
2024 was India’s most active year for climate finance so far. Equity funding in 2024 grew a resounding 95% of equity capital raised for climate action in India in 2023
- Oct 23, 2025,
- Updated Oct 23, 2025 5:24 PM IST
Climate equity funding nearly doubled in 2024 in India, but the first half of 2025 slowed somewhat on account of global political and policy uncertainty, though long-term trends remain positive, said a report on climate funding.
The big shift in 2024 was the emergence of listed equity and public market investments as a prominent source of capital for the sector. Public markets - both initial public offerings (IPOs) and private investments in listed entities (PIPEs) accounted for an unprecedented 60% of the overall equity funding for the year, said the report by Climake, a climate finance advisory firm focused on the Global South.
During 2024, a record USD 3.8 billion was raised from IPOs of climate-focused businesses. Though nearly half came from two mega renewable energy IPOs (NTPC Green and Waaree Energies) and another $700+ million was contributed by Ola Electric, there was plenty of interest in smaller deals with 18 IPOs raising less than $10m each.
“2024 was India’s most active year for climate finance so far. Equity funding in 2024 grew a resounding 95% to USD 9.41 billion, compared to $4.82 billion of equity capital raised for climate action in India in 2023. The equity issuances in 2024 were also well ahead of the previously set high benchmark of $7.15 billion in 2021,” said the report in its fifth edition released this week.
The report estimates that, additionally, debt capital of $21.9 billion was raised by climate enterprises in 2024, resulting in total climate funding of $31.32 billion, a 40% increase over 2023.
“We are seeing a record number of climate-focused limited partners, fund managers and startups set up and focus on India. This is likely to result in even larger climate investments going forward. Investments are starting to diversify beyond the top two sectors, Renewable energy and electric mobility, that account for 78% of India’s equity funding for climate in 2024. While this number is significant, it is lower than the 83% share these two sectors had for all climate equity funding between 2020 and 2023,” it further said.
Climate investments in India are broadening as deals occur in newer segments and sectors compared to previous years. Resilient food systems were the big comeback story for the year, with investments nearly doubling compared to 2023. New sectors like the built environment and grid system interventions for energy resilience also attracted investors’ interest in 2024.
2024 saw a 30% increase in the number of investors participating in climate deals compared to the previous year. Also, nearly half the investors — 155 out of 331 — made their very first climate investment this year, it pointed out.
Climate equity funding nearly doubled in 2024 in India, but the first half of 2025 slowed somewhat on account of global political and policy uncertainty, though long-term trends remain positive, said a report on climate funding.
The big shift in 2024 was the emergence of listed equity and public market investments as a prominent source of capital for the sector. Public markets - both initial public offerings (IPOs) and private investments in listed entities (PIPEs) accounted for an unprecedented 60% of the overall equity funding for the year, said the report by Climake, a climate finance advisory firm focused on the Global South.
During 2024, a record USD 3.8 billion was raised from IPOs of climate-focused businesses. Though nearly half came from two mega renewable energy IPOs (NTPC Green and Waaree Energies) and another $700+ million was contributed by Ola Electric, there was plenty of interest in smaller deals with 18 IPOs raising less than $10m each.
“2024 was India’s most active year for climate finance so far. Equity funding in 2024 grew a resounding 95% to USD 9.41 billion, compared to $4.82 billion of equity capital raised for climate action in India in 2023. The equity issuances in 2024 were also well ahead of the previously set high benchmark of $7.15 billion in 2021,” said the report in its fifth edition released this week.
The report estimates that, additionally, debt capital of $21.9 billion was raised by climate enterprises in 2024, resulting in total climate funding of $31.32 billion, a 40% increase over 2023.
“We are seeing a record number of climate-focused limited partners, fund managers and startups set up and focus on India. This is likely to result in even larger climate investments going forward. Investments are starting to diversify beyond the top two sectors, Renewable energy and electric mobility, that account for 78% of India’s equity funding for climate in 2024. While this number is significant, it is lower than the 83% share these two sectors had for all climate equity funding between 2020 and 2023,” it further said.
Climate investments in India are broadening as deals occur in newer segments and sectors compared to previous years. Resilient food systems were the big comeback story for the year, with investments nearly doubling compared to 2023. New sectors like the built environment and grid system interventions for energy resilience also attracted investors’ interest in 2024.
2024 saw a 30% increase in the number of investors participating in climate deals compared to the previous year. Also, nearly half the investors — 155 out of 331 — made their very first climate investment this year, it pointed out.