Imagine a world where our cities hum with electric vehicles, sunlight powers our homes, and factories capture carbon emissions. This isn’t science fiction, it’s the future being built by the Cleantech industry, a revolutionary force tackling climate change with innovation. As countries around the world race to achieve clean energy goals, the cleantech industry is surging. It’s no longer a niche sector, but a powerful force transforming our planet.
In this latest edition of “The People Weekly,” we’ll delve into the heart of this revolution, with a particular focus on India.
CleanTech Landscape
What is CleanTeach?
The terms “CleanTech,” “GreenTech,” and “ClimateTech” often get tossed around together. But there are some slight differences between them. Green tech is the broadest term. It covers any technology that helps the environment, from recycling to sustainable farming. Cleantech focuses on making existing things less dirty. This means using clean energy sources like solar power and reducing pollution from factories and cars. Climate tech tackles a specific problem: climate change. These technologies help us reduce greenhouse gases or even capture them from the air. So think green for green tech whereas think clean for clean tech and think climate for climate tech!
Thus CleanTech, short form for “Clean technology” refers to a range of technologies and practices that aim to reduce environmental impact by focusing on clean energy sources and minimising pollution. It acts as a bridge between traditional, often polluting, technologies and cleaner alternatives for a more sustainable future.
CleanTech Evolution
This term was coined by the VC community during the late 1990s and 2000s. There was a lot of frenzy around investing in companies promoting cleantech esp solar and biofuels in the early 200s. This coupled with strong advocacy of using clean renewable energy by the then US vice president Al Gore, set the stage for huge investments in the sector. However the bubble burst partly due to ignorance on the part of players with regard to the risks and challenges involved in the cleantech industry and partly due to the recession that hit in the years 2008.. Later during the 2010s the cleantech industry revived and regrouped, this time with valuable lessons learned from the failures. In recent years, the cleantech industry has seen a resurgence, thanks to growing concerns globally about environment and sustainability and therefore favourable government policies.
CleanTech Market Growth
As per IEA, the global cleantech industry will touch USD 650 billion a year by 2030 if the countries fulfil their pledges with regard to clean energy which is around 3 times the present level.
The notable cleantech players globally are USA, Canada, Japan, Germany and China.
Indian CleanTech Market
India’s cleantech market is experiencing explosive growth, ranking among the fastest-growing sectors globally. This surge is fueled by a thriving startup ecosystem, making India a major player in the global cleantech landscape. Even though the sector saw a drop in value in 2022, the sector showed resilience and recovery in deal activity, with a rise from USD 2.7 billion in 2022 to USD 6.1 billion in 2023, doubling in number of investments. With just one month into 2024, the sector has already witnessed three deals valuing USD 207 million.
The major segments in Indian Cleantech space are
- Renewable Energy
- Energy Efficiency
- Green Transportation
- Water and WasteWater Treatment
- Air Quality Control
- Solid Waste Management
The fastest growing among these is the solar sector. In fact India ranks 4th globally for renewable energy capacity addition. Also, India stands 4th globally in Renewable Energy Installed Capacity (including Large Hydro), 4th in Wind Power capacity & 5th in Solar Power capacity (as per REN21 Renewables 2024 Global Status Report). India’s pledge to achieve net zero emissions by 2070 is a major propellant towards alternative clean energy. The “Green Hydrogen Pavilion” set up by the ministry of non renewable energy in the World Hydrogen Summit and the inauguration of India’s first multi-purpose green hydrogen pilot project are testaments to India’s clean tech commitment.
The major sectors that will see tremendous growth by 2040 are the renewable energy sectors and Batteries.
Here’s what makes India a promising cleantech hub:
- Favourable Government Policies: Initiatives like the National Solar Mission and FAME (Faster Adoption and Manufacturing of Electric Vehicles) are driving clean energy adoption.
- Abundant Renewable Resources: India receives vast amounts of solar radiation and wind, providing a natural advantage for renewable energy projects.
- Growing Tech-Savvy Population: India’s young and tech-savvy population is a fertile ground for developing and utilising innovative cleantech solutions.
- Increasing Investor Interest: Venture capitalists and private equity firms are recognizing the immense potential of the cleantech sector in India.
The Future of Cleantech in India
The future of cleantech in India is bright. Here are some key trends to watch:
- Focus on Innovation: Indian cleantech startups are increasingly focusing on developing innovative solutions tailored to local needs. This includes technologies like grid-scale energy storage, smart irrigation systems, and biofuels derived from agricultural waste.
- Integration of AI: Artificial intelligence (AI) is poised to play a transformative role in the cleantech sector. AI-powered solutions can optimise energy use, predict maintenance needs, and improve waste management processes.
- ESG Investment Boom: Environmental, Social, and Governance (ESG) investing is gaining traction globally. This means increased funding for cleantech companies and projects, further accelerating the industry’s growth.
Cleantech Careers
CleanTech jobs are on the increase. As per IEA cleantech jobs in cleantech manufacturing could double to 14 million by 2030. At the same time as per world economic forum around 2.7 jobs might be lost in the fossil fuel industry.Most of the job creation will majorly happen in the electrical efficiency sector, automotive and power generation sector. More than half the employment growth was witnessed in just five sectors: solar PV, wind, electric vehicles (EVs) and batteries, heat pumps, and critical minerals mining. There is a huge demand for energy professional with China being home to the major chunk of energy workers
Here are some promising areas for cleantech professionals:
- Engineering: There’s a high demand for engineers specialising in renewable energy, energy efficiency, and sustainable infrastructure.
- Research & Development (R&D): The cleantech sector requires skilled researchers and scientists to develop new technologies and optimise existing ones.
- Data Science & Analytics: Cleantech companies are leveraging data analytics to optimise operations and improve efficiency. This opens doors for data scientists and analysts.
- Business Development & Marketing: Individuals with expertise in business development and marketing can play a key role in promoting cleantech solutions and attracting investments.
- Policy & Regulation: The evolving cleantech landscape requires skilled professionals who can navigate regulations and develop effective policy frameworks.
Even though clean tech will create jobs in the energy sector, skill shortages are also a major concern. Energy professionals with certifications and skills are still in shortage.
PeopleLogic Opinion
The global cleantech sector presents a dynamic landscape with immense potential for India. While established economies lead in investment and research, India’s large population and growing energy needs make it a prime market for cleantech solutions. By fostering innovation, attracting investment, and addressing skill gaps, India can become a leader in cleantech development, ensuring its own sustainable future while contributing to global efforts to combat climate change.
The cleantech sector’s rapid growth has created a surge in demand for skilled professionals across various disciplines. From engineers and data analysts to project managers and sustainability experts, companies are struggling to fill these critical positions.With our expertise in recruiting for specialised fields, where we find the right talent both for tech hiring and well as non-tech hiring, we can bridge this gap. By leveraging our vast network and deep understanding of the cleantech landscape, we can identify and connect top talent with cleantech companies, ensuring you have the skilled workforce needed to drive innovation and achieve their sustainability goals.
