New Delhi, May 7: Amid a projected global surge in demand for climate adaptation and resilience solutions — estimated to reach between $0.5 and $1.3 trillion by 2030 — India has emerged as a standout market, offering a $24 billion investment opportunity, a new report said on Wednesday.
As climate risks continue to intensify worldwide, the new report by Boston Consulting Group (BCG) and Temasek highlighted the urgent need for large-scale solutions to build resilience across sectors.
However, despite this growing demand, current global spending on adaptation and resilience solutions remained limited — hovering around $76 billion annually — with most of the funding coming from public sources. This leaves a significant gap that private investment, particularly from private equity firms, has the potential to fill.
The report outlined a variety of fast-growing subsectors ripe for private investment, including flood defence systems, wildfire protection, climate intelligence tools, water efficiency technologies, and more.
These areas are not only critical to managing climate risk but also present strong business cases, with many expected to offer double-digit growth and EBITDA margins of up to 30–40 per cent.
India’s role in this investment frontier is especially prominent. Kanchan Samtani, APAC Leader – Corporate Finance and Strategy and India Leader – Principal Investors and Private Equity at BCG, emphasised that India’s high climate vulnerability makes it a priority market for resilience-focused investments.
“Emerging markets, and India in particular, are at the forefront of climate vulnerability, therefore offering climate adaptation and resilience opportunity for the private equity industry,” Samtani said.
According to Samtani, India is witnessing the formation of distinct value pools where robust financial returns can be matched with meaningful climate impact. She pointed to strong demand across several sectors, from stormwater drainage infrastructure and climate-resilient construction materials to abiotic stress-protection technologies in agriculture.
“Additional high-potential areas in India include advanced water metering systems, technology-enabled emergency medical services, and bio-stimulant agricultural inputs,” she mentioned.
The report further underscores that the adaptation and resilience opportunity isn’t confined to startups. It spans the full investment lifecycle — from early-stage ventures to mature companies integrating adaptation and resilience into their business models — offering room for venture capital, growth equity, and buyout strategies alike.
With regulatory momentum building and public procurement on the rise, the report concludes that the case for private equity to step into climate resilience is not just urgent—it is both viable and actionable.
IANS