How to fund climate projects beyond value chain

Global Grants for Indian Climate Startups- India’s climate solutions are rooted in local realities — but their impact goes far beyond. From watertech innovation in Karnataka, to bioplastics and recycling in Maharashtra, to sustainable fabrics in Gujarat. From agri-waste transformation in Punjab and Haryana, to offshore wind tech rising off Tamil Nadu’s coast, to climate-resilient innovations in Odisha and West Bengal, and air filtration breakthroughs in Uttar Pradesh — I’ve had the privilege of meeting the founders building them — makers, engineers, scientists, and storytellers who are quietly reshaping the future. Through Bharat Climate Startups, I’ve been traveling across India to learn from these ground-up solutions — and I’m constantly reminded that while the problems may be global, so are the solutions. If you're building something in this space, here are 5 international grants and programs that Indian startups can apply to 👇 🔹 1. GSMA Foundation Innovation Fund for Climate Resilience & Adaptation 💰 Up to £100,000 (~₹1 crore) in equity-free funding 📌 For digital climate solutions improving resilience in underserved communities 🌱 Open to startups in South Asia, Africa, and Indo-Pacific 🔹 2. The Earthshot Prize Prize 💰 £1 million (₹10+ crore) per winner 📌 For scalable solutions tackling nature loss, water, air quality, waste, or climate 🌱 Indian startups are eligible — and have been finalists! 🔹 3. Echoing Green Fellowship 💰 Seed funding + 2 years of support 📌 For early-stage climate and social entrepreneurs 🌱 Open to Indian founders with bold ideas and deep impact 🔹 4. ACT For Environment – by ACT Grants (India) 💰 ₹20–50 lakh in catalytic seed grants 📌 For climate innovations in green mobility, clean energy, agriculture, circularity, and carbon removal 🌱 One of the boldest Indian philanthropic funds backing frontier environmental solutions 🔹 5. Global Innovation Lab for Climate Finance (by CPI) The Global Innovation Lab for Climate Finance 💰 Seed + pilot support + investor connections 📌 For ideas that unlock private finance for climate solutions 🌱 Several India-based innovations have already been selected 🔹 6. Imagine H2O Accelerator Program 💰 Non-dilutive funding + mentorship + access to a global investor network 📌 For startups working on water conservation, wastewater treatment, and climate resilience 🌱 Open to startups worldwide, including India 📩 Know someone working on a globally relevant climate solution? Or building one yourself? Message me if you want help navigating these grant calls — or just want to swap notes. Here's to building a vibrant support ecosystem for climate innovators! 💚 The world is watching — and India’s innovators are ready. 🌏 #ClimateAction #ImpactFunding #BharatClimateStartups #ClimateFinance

With climate change posing unprecedented global challenges, the Water as Leverage framework provides an excellent way for transformative, inclusive urban water projects. The framework benefits cities in developing sustainable solutions and unlocking otherwise underutilized private-sector financing. The framework applies the eight principles—from fostering inclusivity and scalability to integrating systemic perspectives—and #WaL initiatives could support scaling up water security and innovation where water connects people, economies, and ecosystems. WaL can support and catalyse a global movement in urban water resilience for cities, private investors, and communities alike. Water-related projects often face challenges attracting private sector investors because of perceived risks, high upfront costs, and limited immediate revenue returns. However, the WaL approach offers a compelling framework to mitigate these barriers: Clear Revenue Opportunities: Projects like Demak's mangrove restoration created direct economic benefits—improved aquaculture incomes, ecotourism activities, and carbon trading credit mechanisms—while reducing coastal erosion. By monetizing ecosystem services, these initiatives become attractive to investors. Blended Finance Mechanisms: The WaL framework encourages diverse funding approaches, including grants, public-private partnerships, and innovative tools like green bonds. These mechanisms de-risk projects and make them more appealing to private investors seeking fiscal returns and reputational gains from investing in sustainability. Long-Term Sustainability: Strong emphasis on adaptive operations and maintenance ensures projects remain functional and practical. For example, enhanced flood defences implemented through Rebuild by Design in Lower Manhattan attracted significant private funding due to their meticulous feasibility studies and maintenance protocols. Proof of Concept: Demonstration pilots, such as the Water Balance Pilot in Chennai, prove scalable and replicable solutions that private investors can confidently support. Guideline is here https://lnkd.in/gg2Ej5V9 Sandra Schoof Meike van Ginneken Kotchakorn Voraakhom Wiwandari Handayani Elijah Hutchinson

Impact startups in MENA are growing fast but funding strategies must evolve just as quickly. One of the questions I’m asked most often by founders is: “Where do we start when it comes to raising funds for climate or sustainability-focused ventures in this region?” Here’s how I usually break it down in 4 key pathways I’ve worked with or closely observed, each requiring a clear narrative, regional awareness, and the right positioning: 1. Government-backed innovation platforms These are not just about incubation, they are increasingly designed to de-risk startups and connect them to capital. 🔹 Example: Hub71 (Abu Dhabi) offers access to corporates, sovereign investors, and a growing base of VC partners through its Incentive Program. It's a launchpad for startups aligned with national priorities. 2. Climate-aligned positioning Framing your solution around climate resilience or adaptation is no longer optional—it’s a strategic funding move. 🔹 Example: ALTÉRRA, the $30B climate investment fund launched by the UAE at COP28, is designed to mobilize capital into areas like clean energy, food security, and nature-based solutions. Startups that clearly align with these priorities stand a stronger chance of attracting institutional and private funding. 3. Corporate sustainability partnerships Corporates in MENA are increasingly partnering with startups to accelerate their ESG goals—often offering pilot funding, technical support, or access to infrastructure. 🔹 Example: PepsiCo Middle East has launched several open innovation challenges in the region, focusing on sustainable packaging, water reuse, and food system transformation. These partnerships are a valuable entry point for startups ready to co-create scalable solutions. 4. Strategic VC alignment Venture capital in MENA is increasingly aligning with long-term sustainability themes—especially in climate tech and resource efficiency. 🔹 Example: VentureSouq, a MENA-based VC, launched its Climate Tech Fund I to invest in technologies tackling the climate crisis—from energy and mobility to the circular economy. They’re actively backing companies that blend strong commercial potential with measurable impact. The takeaway? It’s not just about raising funds, it’s about raising strategically. That’s how you align with where capital is moving in the region. If you found this useful, share it with a founder or ecosystem builder working on climate and impact in MENA. Let’s make these conversations more visible ;-) #ClimateFinance #MENA #ImpactStartups #StrategicFunding #GreenTransition #BusinessWithPurpose

This CEO's team of 30 has mobilized $1.6B in non-dilutive funding for climate tech companies. He shared insights with our climate CEO peer group at EFI (Entrepreneurs for Impact). Here are some notes... Joel Armin-Hoiland is the founder and CEO of Climate Finance Solutions. His guest speaker session with our climate tech CEO peer group at EFI (Entrepreneurs for Impact) was a full-circle story for us two. We met in the MCJ Slack group in the early days of Covid when his work at CFS and mine at EFI were just little babies starting to walk. 😀 Not only has Climate Finance Solutions raised $1.6B in grant funding for their climate tech clients, but their success rate is 90%. (wow) Also surprising: They have a large footprint in Europe and are helping many US companies access the European grant market. Highlights included: - 80% of IRA funding is going to Republican districts. - Sectors most at risk of losing federal funding might be EVs, wind, and the Loan Program Office (new, not old, loans). - Sectors that might be the safest are nuclear, geothermal, and hydro. - State governments might make up for some of the changes in federal funding: CA plans to invest $54B across 5 years, and NY looks to invest $10B over 6 years. - The EU offers $75B across three programs over the next 5-10 years in non-dilutive climate funding. - There are six steps in raising non-dilutive funding, but you don't always need to start with step 1. - Startups should apply to fewer, not more, grants. It's not "spray and pray." - The capital raising process with VCs is very different from the strategy (and time per capital provider) with grant providers.

The old model of foreign aid is dying. And that might be the best news the climate transition has had all year. For decades, the approach was straightforward: governments provided aid to fund specific projects. But the scale of the climate crisis demands a bigger, smarter and more collaborative playbook. That new playbook is emerging right now across the Indo-Pacific. It starts with catalytic public funds. Australia's aid budget, for example, now includes a A$126 million 'Climate Catalyst Window' designed to de-risk projects. This initial spark of public funding is designed to unlock scale-up finance from development banks, creating the blended finance model needed to attract private capital. This incredible photograph from the Kyeema Foundation is the story in microcosm. It shows a coral gardener in Fiji from the Community-led Coral Reef Restoration project, a groundbreaking initiative that propagates heat-tolerant 'super corals' to build local resilience. The story behind this project is a fitting example of the new financial ecosystem at work. It's a community-led initiative, implemented by Marijke Frantzen's brilliant team at Kyeema, and supported by the Climate Resilient by Nature (CRxN) initiative. CRxN itself is a partnership between the Australian Department of Foreign Affairs and Trade and WWF-Australia. Making this new financial architecture actually work on the ground requires a whole new kind of collaboration. It’s a complete ecosystem. You need the strategic practitioners like Lee Stewart (ESG Strategy), who design the frameworks for these community-led projects. You need the on-the-ground leaders like Eunice Wotene (Oxfam in the Pacific), who ensure this work creates real, equitable impact. And you need the brilliant communicators who can translate these complex partnerships into compelling public narratives – the vital work being led by people like Tui Marseu (WWF-Pacific), Veronica Joseph (WWF-Australia), Sheldon Chanel (UNCDF), Denali Hussin (CFAN), Hamish Wyatt and Mue Bentley Fisher (The World Bank) and Epeli Nakautoga (IUCN). It’s an exciting new era of financial innovation. Our job as storytellers is to craft the human narratives that will help direct this capital to where it’s needed most. #ClimateFinance #InternationalDevelopment #ClimateStorytelling #IndoPacific #BlendedFinance

Even the world’s largest, most sophisticated investors—those that understand financial climate risk deeply—are structurally constrained from financing the transformations needed to reduce that risk at its source. Simon Mundy's recent Financial Times article on Norway’s $1.8 trillion sovereign wealth fund (Norges Bank Investment Management) is a powerful illustration. NBIM’s own modeling suggests that climate change could wipe out 19% of the value of its U.S. equity holdings. Yet its mandate—to maximize returns with reasonable risk—limits its ability to “more aggressively support climate change mitigation.” This isn’t a critique of NBIM. It’s a reminder that asset owners, no matter how committed or informed, cannot - on their own - deliver the systemic transformations that meaningful climate action requires. There is a better approach: coordinated, multi-actor strategies that are both more effective and entirely doable. Systemic transformations—redesigning energy systems, electrifying transport, decarbonizing industry—require multi-actor coordination, institutional arrangements, and financing tools that go far beyond conventional portfolio strategies. Moreover, two-thirds of future emissions are projected to come from emerging and developing economies. But most institutional capital is not flowing there, constrained by high perceived risk and low credit ratings. Mitigating climate risk requires unlocking affordable finance in EMDEs. Financial institutions can and should be core partners in confronting planetary and financial climate risk. But today’s dominant approaches—corporate target-setting, exclusions, portfolio realignment, etc.—are not enough. The more effective strategy for large asset owners who understand climate risk is to work with governments, MDBs, utilities, and real-economy actors to co-design and co-finance system-wide transition pathways. Another basic reminder is that finance follows markets, not the other way around. When coordinated transition strategies reduce fossil fuel demand, improve the risk-adjusted returns of low-carbon alternatives, and de-risk investments through mechanisms like long-term offtake agreements or expanded credit enhancements, capital will follow. Pressure on financial institutions alone will yield, at best, inherently modest and limited results. Some argue that in the absence of stronger political leadership, incremental steps by financial institutions are better than nothing. But in many parts of the world, the real bottleneck isn’t political will—it’s the structural constraints of the financial system and the lack of coordinated engagement among economic actors. In developed economies, much can be done through subnational governments, public utilities, regulators, and public procurement, even without federal action. What’s missing is not intent but practical, multi-actor coordination—and that is entirely within reach. https://lnkd.in/eueSRXqt

FOAK (first of a kind) climate projects are all the rage right now - and it makes sense why. They're desperately needed. I've spent the last few months digging into this big opportunity for climate startups, the challenges that come with it, and the organizations who are working to fill the gaps. Here are the spark notes on what I’ve learned so far: Climate startups are facing a bottleneck. Many have built prototypes and shown proof of concept, mostly on the back of VC dollars, but taking the necessary next step of piloting and deploying their tech at a commercial scale is more akin to a massive leap. Challenges include… Funding - VC dollars are no longer enough. Building capital intensive infrastructure requires risk tolerant project finance, non-dilutive funding, and often philanthropy, all working in tandem. Expertise - Startup founders are innovators, not developers or financiers. Nor should they try to become those things. Rather, they can succeed by pulling in support from experts in these areas. Partnerships - This is the biggest one, in my opinion. Commercial-scale tech deployment by growth stage startups is a hugely multifaceted process. In addition to the startup team, the financial stakeholders, and the development experts, you also need buy-in from market incumbents (public or private) who can champion the technology within the market and serve as initial customers, as well as community-based organizations where projects will be built. And you need all of these stakeholders aligned and collaborating smoothly. Talk about herding cats! I will be focusing my efforts in 2024 on building more collaboration and better partnerships within this space, so that we can drive climate impact and get these amazing technologies to market. Here is a list of some companies I’ve come across who are already doing amazing work in this space: Elemental Excelerator is playing a big role as a convener with leadership from folks like Dawn Lippert, Saritha Peruri, and Danya Hakeem. Many orgs are focused on funding scale up projects, like Breakthrough Energy’s Catalyst group, Prime Coalition, Trent Yang’s Galway Sustainable Capital, Inc, Generate, FullCycle, Keyframe, and Wavelength Infra (Caroline McGeough). Third Sphere is making it easier for startups to understand the process and access capital (Shaun Abrahamson, Shilpi Kumar, Stonly Blue) Others are running programs to help connect growth stage startups with market incumbents for pilot projects, like Newlab (Shaina Horowitz, Carlos E. Trevino, Liz Keen), Uptake Alliance (Chris Richardson), Black & Veatch’s Ignite Program, Accenture (Jonathan Weitz), and Deep Science Ventures’s FOAXIAL Accelerator (Ahmad Butt). Sightline Climate (CTVC) wrote an awesome article recently about two successful FOAKs with LanzaTech and H2 Green Steel. I can’t list them all and even if I could, I’m sure there are so many who I’ve missed. So I’ll ask you: who are the orgs leading the way on FOAK climate projects?

💸 THE FUTURE OF CLIMATE FINANCE: 5 EMERGING MODELS THAT WILL CHANGE EVERYTHING We talk about trillions, yet many communities can’t access even millions. But I’ve seen a shift. After 18 years in this field — from UN negotiations to community projects — I’ve watched these models rise, often against the odds. ✅ Let’s talk about five that are changing how climate finance flows: 1️⃣ Debt-for-Nature Swaps 2.0 Not just restructuring debt. This is about creating real sovereignty. 🌿 Countries like Seychelles and Ecuador are combining debt relief with conservation and resilience, backed by private and philanthropic capital. 2️⃣ Blended Finance Platforms When markets hesitate, blended finance steps in. 💰 By mixing public, private, and philanthropic funds, these platforms unlock projects that traditional banks won’t touch — especially in adaptation. 3️⃣ Nature-Based Carbon Markets It’s no longer just about offsets. It’s about integrity. 🌱 Strong MRV systems and community benefit-sharing are now essential. Article 6 only works if trust is real. 4️⃣ Subnational Climate Bonds Cities are not waiting for national politics to catch up. 🏙️ Local governments are issuing green and blue bonds to fund resilience—faster, more directly, and with tangible local impact. 5️⃣ Loss & Damage Financing This isn’t charity. It’s justice. ⚖️ New funding mechanisms are emerging to compensate for irreversible harm. Equity, direct access, and transparent governance are now essential. 🌍 Where Do We Go From Here? These ideas are already shaping reality, 💬 Which of these do you see gaining traction in your work? #ClimateFinance  #BlendedFinance  #GreenBonds  #CarbonMarkets   #LossAndDamage  #NatureBasedSolutions  #ClimateLeadership   #FinanceForDevelopment  #ClimateAction

Sustainability budgets will dry up without measurable ROI. Decarbonization is still a priority, but CFOs won’t greenlight sustainability projects unless they deliver measurable ROI. For food suppliers, investing in biochar, agroforestry, or enhanced rock weathering makes sense—but only if the financial return is clear. Two key questions determine success: Where is the revenue coming from, and what additional benefits does the project bring? 🌱 Sell offsets? Tech companies may pay $150 per ton of CO₂ removed—a strong revenue stream, but you forfeit the ability to reduce your own product’s carbon footprint. 🌱 Claim insets? FMCG brands may only pay $50 per ton, but you gain long-term customer loyalty, unlock green premiums, and reduce Scope 3 emissions. But it’s not just about carbon prices. The biggest missed opportunity in evaluating nature and climate investments is failing to account for: ✅ Yield improvements from healthier soil ✅ Input reductions (fertilizers, water, pesticides) ✅ Resilience against extreme weather If sustainability projects don’t generate revenue, lower costs, or strengthen the supply chain, they won’t get funded. 💡 Thinking about biochar, agroforestry, or climate-smart projects? CarbonPilot helps companies quantify ROI, co-benefits, and financial outcomes—so sustainability investments are as strategic as any other business decision. #sustainability #carbonremoval #biochar #climateaction #insetting #offsets #supplychain

Bridging the Climate Finance Gap: A Roadmap to Net-Zero 🌍 💡 Did you know? Emerging markets face a massive climate finance gap, leaving critical sustainability goals at risk. CDP #carbondisclosureproject's latest analysis introduces a step-by-step framework to create effective Climate Finance Roadmaps. Here's what it entails: 1️⃣ Identify Financing Gaps: Understand where investments are most needed. 2️⃣ Assess Investment Risks: Provide clarity for stakeholders on sector-specific barriers. 3️⃣ Align Investments: Match public and private funding with granular sectoral and regional insights. 4️⃣ Optimize Capital Mix: Achieve balanced investments for long-term impact. By integrating data-driven analysis, these roadmaps enable investors and policymakers to work together, mobilizing resources for global sustainability. Why does it matter? 🔑 Investors can align portfolios with climate objectives while mitigating risks. 🔑 Policymakers get actionable insights for targeted interventions. 🔑 Together, we can address the climate finance gap and advance toward net-zero goals. 📌 What’s your take? How can this roadmap inspire action in your sector? Let's discuss in the comments. 👇 👉 Download the full report here and explore the future of climate finance. #Sustainability #ClimateFinance #NetZero #ImpactInvestment