ICC CEO Shloka Nath discusses the need to invest in climate innovation now and how philanthropic capital can be a powerful catalyst in shaping clean markets, de-risking new solutions and avoiding carbon lock-ins.
With India racing to build its infrastructure and economy, the choices that are made today will largely define its carbon footprint for decades. Thereby, it is necessary to find climate solutions that are scalable and uniquely suited to the Indian context.
Taking a step in this direction, the Climaforce Fund—a first-of-its-kind initiative by HCL and the India Climate Collaborative (ICC) is using philanthropic capital not just to fund intent, but to drive real and market-level impact.
In a conversation with Outlook Business, ICC CEO Shloka Nath discusses the need to invest in climate innovation now and how philanthropic capital can be a powerful catalyst in shaping clean markets, de-risking new solutions and avoiding carbon lock-ins.
How was the Climaforce fund’s focus determined? What are the core climate challenges that you are aiming to tackle?
The key imperative for us is that this is philanthropic capital—not just a fund. That’s a huge differentiator. When developing the scope with HCL, we focused on India’s emissions and where they are growing fastest—buildings, cooling, and freight mobility. These sectors make up a large share of India’s future carbon footprint. Without low-carbon pathways here, we risk locking in high emissions for the next 20–30 years.
At the same time, these are sectors where innovation can be transformative. The right technologies and models can truly shift the trajectory. Philanthropic capital is crucial here—it’s flexible, patient, and risk-tolerant. It can fund early pilots, build data and evidence, and de-risk innovations that commercial or public capital can scale.
How is ICC working to mobilize more funding for Indian climate solutions? What are your future plans in climate funding in India?
We were established with a clear purpose: to grow India’s climate ecosystem by unlocking both individual and corporate philanthropic capital. Our mission is to help funders give in a more strategic and catalytic way —identifying high-impact areas in the economy that need urgent climate investment.
While mature sectors like renewable energy already have robust ecosystems, emerging areas such as nature-based solutions and sustainable food systems remain nascent. These sectors require significant investment in pilots, data, and research to build scalable, proven models.
Our approach emphasizes domestic leadership, recognizing that the Global South—particularly India—must lead in developing context-specific climate solutions that can be exported globally. Rather than depending on Global North innovations that often don’t fit local realities, we believe India can be a climate solutions hub for emerging economies.
We work across both adaptation and mitigation, supporting philanthropies in designing impactful portfolios, and collaborating closely with the global climate community. At the core, we aim to show how grant capital can be a powerful, transformational tool to accelerate low-carbon development in India and beyond.
How can policymakers be engaged to ensure that grassroot innovations and community perspectives shape national climate policies?
One important point to note is that government policies already exist and are playing a significant role in shaping priorities. Typically, the central government sets policy signals. For instance, India’s Cooling Action Plan outlines sustainable cooling goals—reducing demand, preparing for refrigerant transitions and enhancing energy efficiency.
In buildings, for example, the National Building Code (2016) incorporates the Energy Conservation Building Code. The Bureau of Energy Efficiency has also introduced a star rating system for buildings. Similarly, there are strong examples across other sectors, like freight.
The key takeaway is that civil society needs to respond to the direction set by government. These policy signals not only shape market opportunities and investment flows but also help us create action plans on the ground—from the state to the village level.
Think of these signals as ambition- and agenda-setting tools. Meeting the challenge requires collaboration across stakeholders—government, business, philanthropy, and civil society—working systematically and in an integrated way.
What do you think are the biggest misconceptions that people still have about climate funding in the country?
A major misconception is that the climate crisis is too big to solve—the capital needed feels overwhelming. But it’s not just about volume; it’s about strategically using different types of capital.
Another myth is that climate finance is solely the government's job. In reality, unlocking domestic private capital—philanthropy, CSR, vendor finance—is essential. India’s transition needs a whole-of-society investment.
People also assume climate finance only means big infrastructure projects. But localized solutions—like regenerative agriculture or heat-resilient housing—need small, smart investments and not massive funds.
Additionally, green investments are seen as risky or low-return but sectors like solar and energy efficiency are already mature and profitable. Early-stage innovations do need de-risking—which our latest initiative with HCL does provide.
Lastly, relying too much on international finance creates unrealistic expectations. That’s why ICC exists—to mobilize Indian capital and drive a self-determined, climate-safe future.
What does it take to take a market-ready climate innovation idea and commercialize it? What costs and other efforts does that involve?
Our key question was: how do we ensure philanthropic funding drives real impact and not just intent? That meant a long-term, five-year program—not a one-off grant.
The goal is to move innovations from selection to pilot, then to scale—into markets, businesses and policy. This needed partnerships across the ecosystem—think tanks, incubators, investors, and more. We are building on what already exists.
Each pilot is co-created with businesses, rooted in real needs and then comes 2–3 years of testing, supported by ongoing technical advisory from ICC and partners. Post-pilot, we focus on scaling through strategic partnerships.
This isn’t just about capital—it’s about deep handholding. Grant funding gives us the flexibility to do all of this.