UPSC CURRENT AFFAIRS – 18th May 2025

Home UPSC Current Affairs DPIIT–GEAPP Pact to Boost Climate-Tech Startups in India

DPIIT–GEAPP Pact to Boost Climate-Tech Startups in India

Why in News?

On May 17, 2025, the Department for Promotion of Industry and Internal Trade (DPIIT) signed an MoU with the Global Energy Alliance for People and Planet (GEAPP) to promote early-stage climate-tech startups through funding, mentorship, and innovation support. The partnership includes the launch of the ENTICE platform with rewards of up to $500,000 for high-impact solutions.

Key Highlights

MoU signed between DPIIT and the Global Energy Alliance for People and Planet (GEAPP) to support early-stage climate-tech startups in India.
Launch of ENTICE (Energy Transitions Innovation Challenge), a competitive innovation platform focused on clean energy solutions.
Reward pool of up to $500,000 for high-impact, scalable climate-tech innovations.
Mentorship and investment support to be provided through partners like Spectrum Impact and Avana Capital.
Aims to foster startups aligned with India’s net-zero targets and energy transition goals.

Background

India’s Climate Goals:
- Net-zero target by 2070 announced at COP26.
- 50% of cumulative electric power from non-fossil sources by 2030.
Startup India Mission (DPIIT initiative):
- Supports innovation, especially in critical areas like clean energy and sustainability.
GEAPP:
- A multilateral platform committed to accelerating green energy transitions in emerging economies by supporting people-centric solutions.

ENTICE Challenge

Platform Function: Competitive innovation challenge for startups working on climate-tech, clean energy, and energy access.
Eligibility: Early-stage Indian startups with scalable climate-impact innovations.
Support Offered:
- Financial rewards.
- Strategic mentorship.
- Access to climate-investment networks.

Significance

Encourages Innovation in Climate-Tech:
- Startups are key to developing decentralized clean energy solutions.
Supports SDGs & Just Transition:
- Advances UN SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action).
Public–Private Collaboration:
- DPIIT’s government platform combines with global finance and mentorship ecosystems.
Green Industrial Policy Push:
- Aligns with India’s green startup ecosystem under Startup India, Make in India, and National Green Hydrogen Mission.

Challenges

Access to Patient and Risk-Tolerant Capital
- Climate-tech startups often require longer R&D cycles and capital-intensive prototyping.
- The Indian VC/PE landscape is more tuned to digital and SaaS models with quicker returns.
Weak Startup Penetration in Climate-Critical Regions
- Many potential solution zones (like rural India, flood-prone areas, or tribal belts) lack access to incubators and innovation ecosystems.
Policy Incoherence
- Disconnect between startup policies (DPIIT) and climate policy instruments (MoEFCC, MNRE).
- No unified national climate-startup convergence platform or coordination body.
Scaling Barriers for Hardware-Based Innovations
- Unlike software startups, climate-tech (e.g., battery storage, bio-energy) needs advanced manufacturing, IP support, and regulatory clearance.
Limited State-level Startup Ecosystem for Green Innovation
- Most states have not yet included green tech startups as a separate category for fiscal or incubation incentives.

Way Ahead

Institutionalise Climate Startup Clusters:
- Create region-wise green tech hubs and incubators under DPIIT.
Converge with Other Missions:
- Integrate ENTICE with Green Hydrogen Mission, PM-KUSUM, and Panchamrit targets.
Encourage State Governments’ Role:
- Incentivise state-level policies to support startup energy labs and pilots.
Strengthen Domestic VC Ecosystem:
- Mobilise sovereign funds and CSR capital for early-stage clean tech ventures.
Monitor and Evaluate Impact:
- Ensure transparent reporting and knowledge-sharing from ENTICE outcomes.

Conclusion

The DPIIT–GEAPP partnership is a strategic move to foster climate innovation through startups, aligning economic growth with sustainable development. By bridging the gap between innovation, capital, and policy, this initiative can position India as a leader in scalable climate solutions for the Global South, while advancing its net-zero commitments through youth-led entrepreneurship.