Reviewed by Aug 27, 2020| Updated on
What is Cleantech?
Cleantech is a theory of investing used by investors who plan to benefit from environment-friendly companies. The term comes from "clean technologies." Cleantech companies aim to increase performance, productivity, and efficiency by minimizing negative environmental effects.
Cleantech is used to describe companies that deal with energy, water, transportation, agriculture, and manufacturing. The term is often interchanged with "greentech" or "green technology". Several variations of the term can also be used in writing, including "clean tech" or "clean-tech."
The concept originates in the investment community of venture capital (VC), so it is somewhat different from the way it is described as compared to many green companies, which concentrate on sustainability rather than profitability. High-growth industries, such as solar, wind, biofuel, and water purification, have expanded to include this.
What is the Importance of the Cleantech Industry in India?
India has ambitious plans with respect to its renewable energy sector. Its aim was to raise the renewable energy capacity to 175 GW by 2022. To achieve this goal, it had set a year-to-year deadline. Yet India's government has raised its target to 225 GW by 2022, well ahead of its original 175 GW goal.
India added 11,788 MW of renewable energy capacity in 2017-18, and the numbers increased to 1,832,26 MW (interactive and off-grid grid) in April-July 2018.
Overall, it is estimated that up to 8.5 GW of renewable energy capacity will be installed in 2018-19, resulting in India surpassing its Paris Agreement objectives.
By 2030, India plans to produce 40% of its total energy consumption from renewable energy.