Tata Capital Limited (TCL), the flagship financial services arm of the Tata Group, has announced a partnership with the Green Climate Fund (GCF) to support early-stage climate-tech startups across India. This collaboration, part of GCF's newly approved BEACON INDIA Programme, marks a step in bolstering India's green innovation ecosystem.

Key Highlights of the Partnership

• Tata Capital will receive a revolving facility of USD 15.85 million from GCF.
• An additional USD 3 million grant will be provided to make financing more affordable for climate-focused startups.
• Tata Capital will contribute USD 47.6 million of its own funds, demonstrating a commitment to the initiative.
• The program aims to reduce over 1.1 million tonnes of CO₂ emissions and benefit nearly 2.9 million people through climate adaptation and mitigation efforts.

Innovative Financing Structure

The revolving structure of the fund allows Tata Capital to reinvest repaid loans into new ventures, aiming to ensure sustained support for the climate innovation ecosystem.

Collaborative Effort

The program is being implemented in collaboration with the Small Industries Development Bank of India (SIDBI) and TREC-STEP, an innovation and entrepreneurship development organization. This multi-stakeholder approach is designed to provide support to emerging green technologies.

Tata Capital's Green Leadership

This partnership positions Tata Capital as a participant in climate and green financing in India. Notably, it is the first Indian entity to collaborate with GCF on two distinct climate programmes:

1. In 2019, Tata Capital became the first private sector company in India to partner with GCF for rooftop solar financing.
2. The current BEACON INDIA Programme partnership further extends their involvement in sustainable finance.

Strategic Importance

Rajiv Sabharwal, Managing Director & CEO of Tata Capital Limited, emphasized the company's commitment to green initiatives, stating, "Through this programme, we aim to help emerging entrepreneurs scale their green technologies and make a measurable difference to people and the planet."

Broader Impact

This initiative is not just about funding; it's about supporting India's transition to a low-carbon economy. By supporting climate-tech startups, Tata Capital is playing a role in fostering innovation that can address environmental challenges.

Looking Ahead

As India continues to focus on sustainable development, partnerships like this between financial institutions and global climate funds may play an increasingly important role. They not only provide capital but also bring international expertise and practices to the local startup ecosystem.

Tata Capital's latest move reinforces its position in India's green finance landscape, potentially setting an example for other financial institutions in supporting climate-focused innovations.

Tata Capital Limited , the flagship financial services arm of the Tata Group, has announced a groundbreaking partnership with the Green Climate Fund (GCF) to bolster India's climate-tech start-up ecosystem. This collaboration, part of the BEACON INDIA Programme, aims to provide crucial support to early-stage climate-focused ventures across the country.

Key Highlights of the Partnership

Programme Structure and Impact

The BEACON INDIA Programme introduces a unique revolving facility structure, allowing Tata Capital to reinvest repaid loans into new climate-tech ventures. This approach ensures long-term support for the green start-up ecosystem in India.

Rajiv Sabharwal, Managing Director & CEO of Tata Capital Limited, emphasized the company's commitment to sustainable initiatives, stating, "Through this programme, we aim to help emerging entrepreneurs scale their green technologies and make a measurable difference to people and the planet."

Tata Capital's Green Finance Leadership

This partnership marks a significant milestone for Tata Capital:

1. It becomes the first Indian entity to collaborate with GCF on two distinct climate programmes.
2. The company previously partnered with GCF in 2019 for rooftop solar financing, establishing itself as a pioneer in the private sector for such collaborations.

These achievements underscore Tata Capital's leadership in climate and green financing, reinforcing its dedication to driving sustainable growth and supporting India's transition to a low-carbon economy.

Broader Impact and Future Outlook

The BEACON INDIA Programme is expected to have far-reaching effects:

• Climate Mitigation: Reduction of over 1.1 million tonnes of CO₂ emissions
• Social Impact: Benefits nearly 2.9 million people through various climate adaptation and mitigation efforts
• Economic Boost: Supports the growth of early-stage climate-tech start-ups, potentially creating jobs and fostering innovation in the green sector

As Tata Capital continues to expand its green finance initiatives, this partnership with the Green Climate Fund sets a new benchmark for private sector involvement in climate action. It demonstrates how financial institutions can play a pivotal role in nurturing sustainable technologies and supporting India's climate goals.

The success of this programme could pave the way for more such collaborations, potentially accelerating India's progress towards a more sustainable and climate-resilient future.