India ranked 9th in VC funding for climate tech globally: Report

India ranks at the ninth spot globally for climate tech investment, with the country's climate tech firms receiving $1 billion in venture capital funding between 2016 and 2021, according to a report

India ranks at the ninth spot globally for climate tech investment, with the country's climate tech firms receiving USD 1 billion in venture capital funding between 2016 and 2021, according to a report released on Tuesday.

Venture capital (VC) investment in climate technology companies has gone up globally since 2016, as per the report jointly prepared by international trade promotion agency London & Partners and Amsterdam-based database management company Dealroom.co.

Global climate tech venture capital investment soared from USD 6.6 billion in 2016 to USD 32.3 billion in 2021, an increase in funding by almost five times, the research revealed.

"2021 investment levels have already exceeded the whole of 2020 for global climate tech investment, demonstrating the importance of the global tech industry in the fight against climate change," said the report, which analyses technology companies working to reduce greenhouse gas emissions or addressing the impacts of climate change.

The top 10 countries for climate tech VC investment between 2016 and 2021 are -- US (USD 48 billion), China (USD 18.6 billion), Sweden (USD 5.8 billion), UK (USD 4.3 billion), France (USD 3.7 billion), Germany (USD 2.7 billion), Canada (USD 1.4 billion), Netherlands (USD 1.3 billion), India (USD 1 billion) and Singapore (USD 700 million).

"Europe is the fastest-growing region globally for climate tech, with European VC investment into climate tech firms seven times higher this year than in 2016 (up from USD 1.1 billion to USD 8 billion).

"In Europe, London is one of the world's most advanced ecosystems for climate tech, with its startups raising USD 3.3 billion since 2016, accounting for 16 per cent of Europe's total. London is also home to 416 climate tech companies, the biggest cluster in Europe," the report said.

Hemin Bharucha, Country Director India, London & Partners, said countries around the world need to work together "so that we can collectively change business practices and commit to net zero emissions."

The global tech industry plays a pivotal role in accelerating this global transformation and this is demonstrated in the rapid growth of VC investment into global climate tech companies, Bharucha said.

Future growth looks strong for London's climate tech sector, with the UK capital ranking second globally behind the Bay Area for the number of funding rounds raised by climate tech startups, demonstrating an active early-stage ecosystem, the report said.