Venture capital funds invested over USD 2.5 billion in green financing solutions in the last 36 months, according to a report by Access Development Services released on Wednesday.
The inclusive finance report stated that the emerging climate risk warrants a more granular and high-frequency digitisation approach for the purpose of risk assessment and mitigation for anyone lending to the sector.
The report further stated that the combination of policy, investments, catalytic capital, blended finance and innovations have the potential to solve climate challenges facing Indian agriculture.
Government, policymakers, industry, funds, investors and startups have to work together to build long-term and ever-lasting solutions to make Indian agriculture climate resilient and sustainable, it added.
Hemendra Mathur, Venture Partner, Bharat Innovation Fund, and Co-founder, ThinkAg said, “It’s very timely to see an upswing in climate-solving innovations developed by young entrepreneurs for climate risk mitigation, adaptation and resilience.”
HE said that climate-linked financing and insurance products need a lot of integration of technology for these models to scale.”
Mathur added that there is a need to build a strong public ecosystem and policy support for climate-solving agritech startups like the kind of interventions we see in other climate risk-related areas such as electric vehicles, mobility and pollution-tech.