People, Planet AndPurpose #48: The Capital Behind Climate Action

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“Capital is not scarce. Vision is.” - Sam Walton

The transition to a sustainable future is no longer limited by ideas - it is increasingly shaped by access to finance. Across sectors, entrepreneurs are developing innovative solutions in clean energy, circular economy, climate technology, sustainable agriculture, and resource efficiency. Yet many struggle to scale because they lack access to the capital needed to grow.

As India accelerates its climate ambitions and sustainable development goals, financing sustainability has become one of the defining challenges - and opportunities of this decade. Mobilising capital at scale will determine how quickly innovative solutions move from pilots to widespread impact.

Finance as a Catalyst for Change

Every sustainability solution - whether it is a climate-tech startup, a renewable energy project, a circular economy venture, or resilient infrastructure - requires one essential ingredient to scale: capital.

The opportunity is immense. According to the International Finance Corporation (IFC), India’s climate-smart investment opportunity is estimated at nearly US$3.1 trillion between 2018 and 2030, spanning renewable energy, green buildings, electric mobility, climate-resilient infrastructure, and sustainable urban development.

Yet despite growing investor interest, many startups and impact-driven businesses continue to face funding gaps, particularly during the early stages of innovation. Bridging this gap will require stronger collaboration between governments, financial institutions, corporations, investors, and entrepreneurs to ensure that promising ideas can move beyond pilots and create large-scale impact.

As sustainable finance becomes a strategic priority, investment decisions are increasingly being shaped not only by financial returns but also by long-term environmental and social outcomes.

The Sustainable Finance Opportunity

The numbers underscore the scale of investment required:

• India will require an estimated US$10.1 trillion in investments by 2070 to achieve its net-zero target. (Council on Energy, Environment and Water – CEEW)

• Global sustainable investment assets exceeded US$30 trillion, reflecting the growing integration of environmental, social, and governance (ESG) considerations into investment decisions. (Global Sustainable Investment Alliance – GSIA)

• According to the Climate Policy Initiative (CPI), global climate finance reached nearly US$1.3 trillion annually in 2021/22, yet remains significantly below what is needed to meet climate goals.

India’s green finance market continues to expand through green bonds, blended finance, sustainability-linked lending, venture capital, and impact investing.

These figures highlight a critical reality: the challenge is no longer proving that sustainable solutions exist - it is ensuring they receive the financing required to scale.

Why Sustainable Finance Matters

Sustainable finance is rapidly moving from the margins to the mainstream. According to PwC, ESG-related assets under management are projected to exceed US$40 trillion by 2030 (PwC – Asset and Wealth Management Revolution 2022) reflecting how sustainability is reshaping global investment decisions.

For businesses, access to sustainable finance can accelerate innovation, strengthen resilience, reduce climate-related risks, and unlock long-term growth. For investors, it offers an opportunity to generate competitive returns while supporting solutions that address environmental and social challenges.

Sustainability is no longer just a corporate responsibility - it is becoming a key driver of investment, competitiveness, and long-term value creation.

Innovation Is Unlocking New Capital

Across India, financial institutions, investors, and ecosystem enablers are developing innovative ways to fund sustainability.

• SIDBI is supporting climate-focused MSMEs and green enterprises through dedicated financing initiatives.

• Aavishkaar Capital has invested in businesses delivering social and environmental impact across sectors such as clean energy, agriculture, and financial inclusion.

• ResponsAbility Investments continues to finance climate, agriculture, and inclusive businesses across emerging markets, including India.

Climate-focused accelerators, blended finance platforms, and corporate innovation programmes are also helping startups access funding, mentorship, and commercial partnerships.

Together, these efforts are helping bridge the financing gap between promising ideas and scalable impact.

What Needs to Happen Next

Scaling sustainability will require stronger collaboration between governments, financial institutions, corporations, investors, philanthropies, and entrepreneurs.

According to the Climate Policy Initiative, annual global climate finance must increase by at least fivefold by 2030 to remain aligned with international climate goals.

Mobilising capital will require innovative financing mechanisms, stronger public-private partnerships, risk-sharing instruments, and greater investment in early-stage climate and impact ventures.

The future of sustainability will be shaped not only by breakthrough ideas - but by our ability to finance them at scale.

Building Impact Together

At AndPurpose, we believe that solving complex sustainability challenges requires more than innovation - it requires ecosystems that connect entrepre

neurs with investors, corporates, policymakers, and partners who can help turn ideas into impact.

Through our forums, startup showcases, partnerships, and ecosystem initiatives, we remain committed to creating platforms where capital meets innovation and purpose meets opportunity.

Because the future of sustainability will not be built by ideas alone - it will be built by the investments that bring those ideas to life.

With Love & Purpose,
Team AndPurpose