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Home SN Green Leader Chat Climate Investments are Not Charity, they Can Be Very Profitable: Karan Mehta

Climate Investments are Not Charity, they Can Be Very Profitable: Karan Mehta

As part of the SN Green Leader Series with Benedict Paramanand, Editor of SustainabilityNext, Karan Mehta, Venture Principal, Green Frontier Capital, shares what excites him about climate-tech investing, and how India can seize the climate opportunity. With over 16 years in asset management and 12 years dedicated to impact and climate investments, Karan Mehta has been at the forefront of channelling capital into solutions that matter. From leading investments in energy, water, and smart agriculture to backing alternative proteins and climate technologies, he has worked with global asset managers as well as venture capital funds in India.

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You’ve spent over a decade in impact and climate investing. How did your journey begin?

I started in mainstream asset management but was increasingly drawn to the idea of linking capital with purpose. Over time, I realized climate change was not only the defining challenge of our generation but also a space where finance could drive real transformation. That’s how I moved into impact and climate-focused funds, first with a Switzerland-based asset manager and now with a venture capital fund in India.

You’ve led deals across a wide range of sectors-energy, water, smart agriculture, and alternative proteins. What do you find most compelling in these areas?

Each sector represents both an existential problem and an extraordinary opportunity.

Energy transition is central to decarbonization, and we are seeing exciting innovation in distributed renewable solutions.

Water is a survival issue in many parts of India, and scalable technologies for water efficiency or treatment can be transformative.

Smart agriculture is vital for food security. It’s not just about yields but also about making farming more resilient and sustainable.

Alternative proteins are particularly fascinating because they cut across climate impact, nutrition, and ethics. India is at a very early stage here, but the potential is immense.

What excites me most is that these solutions don’t just solve climate challenges in isolation; they touch people’s lives directly.

Image credit – Business Today

What’s unique about the Indian climate tech ecosystem compared to the West?

India’s ecosystem is still young, but it is incredibly dynamic. Our problems, such as air pollution, water scarcity, and agricultural distress, are very stark. That also means solutions here can have an outsized impact.

Unlike Europe or the US, where climate solutions can be very capital-intensive, India thrives on frugal innovation. A startup here does not just invent technology, it invents affordability and scalability. That is why India has the chance to not only solve its own challenges but also to export climate solutions to other parts of the Global South.

What role do investors play in this journey?

Investors have to think long-term. Climate solutions may not always deliver overnight returns, but they build enormous value over time, both financial and social. We need investors who are willing to be patient, to work with entrepreneurs, and to see climate impact as a core part of value creation.

At the same time, there’s growing recognition that climate investments are not charity; they can be very profitable. The success stories we are beginning to see in energy, EVs, and agritech in India are proof of that.

What’s your message to young entrepreneurs entering the climate-tech space?

Focus on real-world problems. Don’t build technology for its own sake; build for impact, affordability, and scalability. The beauty of climate-tech in India is that when you solve a local challenge, you’re also contributing to a global one.

And don’t underestimate the power of partnerships. Climate solutions need ecosystems for policy support, investors, and industry partners. Building those networks early makes a huge difference.

And finally, what keeps you personally motivated in this field?

For me, it’s simple: climate is the defining challenge of our generation. If we don’t solve this, everything else becomes secondary. Being able to contribute, even in a small way, by directing capital into solutions that matter gives me purpose.

Also, I think of the next generation. When my kids grow up, I want them to know that we didn’t just watch the crisis unfold; we acted. That’s what keeps me going.

Edited by J Shiruti

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