Category: Transport

From Billions to Trillions: How Climate Finance is Reshaping Global Investment

Posted on by Dipankar Das

The global conversation around climate change has evolved dramatically over the last decade. Today, the challenge is no longer whether climate action is necessary it is how the world will finance it. From renewable energy projects and electric mobility infrastructure to climate-resilient agriculture and adaptation programs, climate finance has emerged as one of the most powerful enablers of economic transformation. Governments, investors, corporations and development institutions are now mobilizing capital at an unprecedented scale to accelerate the transition toward a low-carbon and climate-resilient future. Yet despite record-breaking investments, the world remains far from where it needs to be.

The question is no longer about the availability of climate finance. The real question is: Who will be able to access it, deploy it effectively and create the next generation of climate-positive growth?

The Rise of Climate Finance: From Billions to Trillions

The Climate Policy Initiative (CPI) has reported in its ‘Global Landscape of Climate Finance 2025”that the global climate finance flows have increased from nearly USD 674 billion in 2018 to ~USD 1.9 trillion in 2023 (as shown in Figure), with estimates suggesting that annual investments have already crossed the USD 2 trillion mark. This growth reflects the accelerating momentum in Energy and Transport sectors which are the highest recipients of climate finance, followed by other sectors such as Buildings & Infrastructure, AFOLU, Sustainable buildings, Nature-based solutions and adaptation projects. However, this success story comes with an important caveat.

The report also estimates that achieving global climate goals will require between USD 6 trillion and USD 11.7 trillion annually over the coming decades. In other words, current investment levels while reaching an all-time high still needs to be much higher to keep global warming within manageable limits and build resilience against increasingly severe climate impacts For businesses, governments and investors, this gap represents both a challenge and an opportunity. The organizations that can successfully navigate the climate finance ecosystem will be positioned to unlock significant capital flows and long-term growth opportunities

Why Climate Finance Has Become a Strategic Business Imperative

Historically, climate investments were viewed as compliance-driven expenditures or sustainability initiatives. Today, they are increasingly recognized as drivers of economic competitiveness, industrial growth, energy security and investment returns. Renewable energy, electric mobility, climate-resilient infrastructure and sustainable supply chains are attracting unprecedented levels of capital, reshaping industries and creating new avenues for growth. In markets such as China, clean-energy industries already contribute more than 10% of GDP, demonstrating how climate-focused investments can become powerful economic engines rather than cost centers.

At the same time, climate finance is becoming a key indicator of a region’s ability to attract investment and accelerate industrial transformation. Between 2018 and 2023 as shown in Figure 2, nearly 79% of global climate finance was concentrated in three regions (darker green shade) i) East Asia and the Pacific ii) Western Europe and iii) the United States and Canada highlighting a growing divide between capital-rich and capital-constrained markets. East Asia and the Pacific alone accounted for 39% of global climate finance, driven overwhelmingly by China. On the other hand, countries like Germany, the United States, Brazil and India emerged as the leading climate finance hubs within their respective regions.

Climate finance has evolved into a diversified ecosystem supported by public institutions, multilateral agencies, private investors, and philanthropic organizations. Governments continue to play a foundational role through climate budgets, incentives and dedicated funding programs and multilateral development and regional development banks provide concessional financing, guarantees, and technical assistance to de-risk investments. At the same time, private capital has emerged as the largest source of climate finance, with institutional investors, infrastructure funds, private equity firms and corporations increasingly directing capital toward these technologies.

The climate finance landscape is also being strengthened by a broad range of financial instruments tailored to different project needs and risk profiles. These include grants, concessional loans, green and sustainability-linked bonds, equity investments, risk guarantees, blended finance structures, project level Market rate debts and carbon market mechanisms. Increasingly, these instruments are being combined to enhance project bankability, reduce investment risks and attract larger pools of institutional capital, enabling the scaling of climate and sustainability-focused investments.

Looking Ahead: The Next Decade Will Define the Climate Finance Landscape

The climate finance landscape is entering a period of unprecedented growth, driven by stronger government commitments, expanding climate-focused lending from development finance institutions and increasing participation from institutional investors. At the same time, innovative financing mechanisms and blended capital structures are improving project bankability and accelerating investment flows into low-carbon and climate-resilient sectors. The funding availability continues to expand, organizations that can develop robust climate strategies, build investment-ready projects and effectively navigate the evolving financing ecosystem will be best positioned to unlock new growth opportunities.

pManifold’s Climate Finance Portfolio

pManifold is a leading consulting and advisory firm focused on e-mobility, climate finance, new energy, transport, green hydrogen and carbon markets. Headquartered in Nagpur, India, it has delivered 400+ projects globally, including 200+ e-mobility and 15+ climate finance assignments across developing regions. Its climate financing practice has been developed through sustained engagement with multilateral climate funds, development finance institutions and international donors. Our expertise spans the entire climate finance lifecycle, from concept development and readiness support to fund structuring, financial instrument design and mobilization. Key service areas include:  

  • Climate Funds Access & Proposal Design: End-to-end support for climate finance access, including concept note development, readiness support, funding proposal preparation and donor engagement
  • Techno-Commercial Due Diligence: Evaluation of technologies, business models, market readiness, commercial viability and investment potential of projects and programmes
  • Project Structuring & Bankability Support: Design of investment-grade projects, financial frameworks, implementation models and bankability assessments to attract public and private investment
  • Blended Finance & Capital Mobilization: Structuring of concessional finance, guarantees, viability gap funding, matching grants and PPP mechanisms to mobilize capital for sustainable development projects
  • Modelling of Financing Instruments and Their Impact: Financial modelling and assessment of financing instruments, including analysis of leverage, risk allocation, affordability and climate impact
  • Policy & Regulatory Advisory: Analysis and design of policy instruments, incentive mechanisms, pricing frameworks, green taxonomies and regulatory measures to accelerate market development

Battery Inflection Point: How BESS Is Reshaping India’s Power Sector and Why Tender Design Must Catch Up

Posted on by Dipankar Das

India’s power sector is at a measurable turning point. This is not a narrative shift driven by sentiment or ideology. It is being driven by numbers. Battery prices, tender tariffs, DISCOM balance sheets, and cancellation statistics all point in the same direction. Storage has moved from being a niche add on to becoming the lowest cost solution for meeting peak demand. At the same time, the way India is procuring storage is beginning to show stress signals that cannot be ignored.

The System Level Need for BESS in India

  • India’s electricity demand profile is increasingly asymmetric. Solar generation peaks between 11 am and 3 pm. Demand peaks between 6 pm and 12 am. This gap has widened as solar capacity has scaled.
  • In high renewable states, daytime solar curtailment has become routine, while thermal generation continues to set marginal prices during evening hours. The system problem is therefore not energy availability but energy timing.
  • Battery energy storage directly addresses this issue by shifting surplus daytime solar into evening peak periods. From a system planning perspective, even four hour storage significantly reduces peak thermal dispatch.

 Scale of India’s Storage Requirement

  • The scale required is substantial and quantifiable. Since 2021, India has tendered approximately 83 GWh of grid scale battery storage capacity. Of this, around 36 GWh has been awarded. About 18 GWh is under construction. Nearly 8 GWh has already been cancelled. Roughly 15 GWh remains under active tendering.
  • By contrast, multiple studies estimate that India will require approximately 230 to 240 GWh of storage by 2032 to support renewable integration and peak demand management. This means less than 20 percent of the required capacity is either operational or under construction today.
  • The gap between requirement and execution highlights both urgency and fragility.

 Battery Cost Decline and the Tariff Reset

  • The single most important variable has been battery cost.
  • Battery pack prices are varying drastically, considering the geopolitical scenario and rare earth minerals dependencies on other countries. Solar plus battery projects that were marginal at INR 4.5 to 5/kWh are now viable closer to INR 3.4/kWh

 Comparative Tariffs Tell the Story

  • The divergence is visible in tariff outcomes.
  • Standalone solar tariffs between 2023 and 2024 consistently ranged between INR 2.3 and INR 2.7 /kWh. Solar plus battery tenders discovered tariffs as low as INR 3.41/kWh by late 2024.
  • FDRE tenders showed significantly higher prices. An FDRE tender in late 2023 discovered INR 4.38/kWh. Subsequent load following FDRE tenders in 2024 ranged from INR 4.98 to INR 5.60/kWh depending on demand fulfillment requirements.

Undersubscription and Cancellation of Tenders

  • Tender response data confirms this price mismatch.
  • In 2024, around 8.5 GW of utility scale renewable tenders were undersubscribed. This was nearly five times higher than in 2023. Energy storage linked tenders, predominantly FDRE, accounted for about 44 percent of this undersubscribed capacity.
  • Cancellation data is more concerning. Between 2020 and 2024, lot of utility scale renewable capacity was cancelled.
  • In 2023 alone, energy storage based renewable tenders accounted for roughly two thirds of all cancelled capacity. This level of rejection indicates a structural problem rather than temporary market hesitation.

 DISCOM Economics Explain the Behaviour

  • The response of utilities is rooted in financial reality.
  • As of March 2024, state distribution companies had accumulated losses of approximately INR 6.92 trillion. Outstanding debt crossed INR 7.5 trillion after growing by about 12 percent in a single year.
  • Under these conditions, utilities are extremely sensitive to tariff levels and contract rigidity. Long term power sale agreements at INR 5/kWh with strict performance obligations represent a material financial risk.
  • This explains why cumulative unsigned power sale agreement capacity has exceeded 40 GW, with a significant portion linked to central agency tenders.

 The Shift Toward Modular Solar Plus BESS

  • Solar plus battery procurement changes the risk profile.
  • Utilities can procure low cost solar energy separately and add battery capacity specifically for evening peak hours. Instead of paying a fixed firm tariff across all hours, they pay for storage only where it delivers value.
  • For example, a four hour battery supporting evening demand from 6 pm to 10 pm directly displaces peak thermal generation. This aligns better with DISCOM cost structures and operational priorities.

 Record Low Battery Bids and the Emerging Risk

  • While battery costs have fallen, recent bids are pushing the limits of sustainability.
  • Some storage tenders have discovered tariffs below INR 1.5 /kWh. Standalone battery capacity tenders with viability gap funding have reached levels of INR 2.36 to 2.38 lakh per MW per month.
  • At these tariffs, concerns arise regarding realistic assumptions on cell life, degradation, replacement schedules, safety systems, and long term operations.
  • There is also increasing concern that some bidders may be securing awards without firm intent or capability to execute projects. If such projects fail at later stages, lenders and utilities bear the consequences.

Battery storage is now the lowest cost option for managing India’s evening peak when paired with solar. India’s storage transition is inevitable. Whether it is smooth or disorderly will depend on how quickly procurement frameworks adapt to what the numbers are already saying.

Why Autonomous Vehicles with Electric Powertrains are future?

Posted on by pmanifold@admin

Autonomous vehicles are one of the most exciting developments in the transportation sector, and their integration with electric power trains is making them even better. In this blog, we will explore why autonomous vehicles powered by electric power trains are the future of goods transportation.

First and foremost, autonomous vehicles are safer than human drivers. They are equipped with advanced sensors, cameras, and software that can detect and respond to potential hazards in real-time. This reduces the risk of accidents caused by human error, such as distracted driving, speeding, and driving under the influence. With the elimination of these risks, autonomous vehicles are helping to make our roads safer for everyone.

Additionally, electric powertrains are much more efficient and environmentally friendly than traditional gasoline-powered vehicles. They produce zero emissions, which helps to reduce the negative impact of transportation on the environment. This results in lower fuel costs, making electric vehicles a more affordable option for consumers. The combination of autonomous vehicles and electric powertrains also has the potential to revolutionize the way goods are transported. Autonomous vehicles can operate around the clock, without the need for rest or breaks, which can significantly increase the efficiency of goods delivery. With electric powertrains, these vehicles can travel longer distances without the need for refueling, making them ideal for long-haul deliveries. Moreover, autonomous vehicles are also more accessible to people with disabilities or mobility challenges. They provide a new level of independence, enabling people who would otherwise be unable to drive to get around more easily. Electric powertrains are also a good fit for these vehicles, as they provide smooth, quiet, and reliable power, making the experience more comfortable for passengers.

Autonomous vehicles powered by electric powertrains can prove to be a game-changer in the transportation sector. They offer many advantages over traditional vehicles, including increased safety, environmental benefits, and greater accessibility. With the rapid growth of this technology, we can expect to see more and more electric autonomous vehicles on the roads in the near future.

As a parting note, it’s important to remember that the integration of autonomous vehicles and electric powertrains is still in its early stages, and there are still many challenges to overcome. Nevertheless, the potential benefits are too great to ignore, and we can look forward to a future where goods transportation is safer, cleaner, and more accessible to everyone.

Low emission development strategy (LEDS): Paving way for surface transport decarbonization

Posted on by pmanifold@admin

Globally climate change is causing catastrophe damage to natural environment deterring the economic progress. Increase in global population, rapid urbanization has caused a huge surge in transport demand resulting in rise of transport emissions.The transport sector is prime contributor to greenhouse gas emissions (GHG) responsible for 24% of carbon dioxide (CO2) emissions with surface transport accounting for nearly three-quarters of transport CO2 emissions. Decarbonization is the vital component that helps attenuate climate change by restricting CO2 emissions.This calls for rapid decarbonizing strategies to achieve net zero emissions as outlined in the Paris Agreement.The governments worldwide are eyeing development plans leading to low GHG emissions and boosting the social, economic, and environmental growth thus paving way for low emission development strategies (LEDS).

How LEDS can help achieve low carbon economy?

LEDS provide integrated planning to advance national economic development and climate change policies in a more integrated, systematic, and strategic way.It can be designed to create a holistic intervention plan by identifying low carbon transport interventions which can be emission standards, shared mobility, electric passenger vehicles, improvement of fuel efficiency, etc. GHG modeling can be developed for baseline estimates, projection and impact assessment of each identified intervention. A prioritization matrix can be developed based on different criteria like Policy and Legal Framework, Ease of Implementation, Economics, Social Benefits, Environment Benefits, Climate Benefits and Replicability. Marginal Abatement Cost Curve (MACC) analysis which is one of the key parameters can be done to quantify benefits and prioritize the interventions based on abatement cost.Targets can be defined for each identified intervention to make improved policy decisions.The entire process of prioritization can be done in collaboration with stakeholders. An institutional structure can be proposed for interventions which ensure smooth policy and planning regulation, its execution and monitoring and control. Also, action plans to identify most suitable sources of financing options available for each LEDS intervention can be explored.Thus, LEDS can help achieve low carbon economy.

The proposed LEDS can be a standard setting instrument that helps identify the source of GHG emissions of a country and provides staggering data from prioritization of interventions. It can result in strong collaboration of development planning and scientific analysis. It can enhance framework conditions necessary for private sector investment in mitigation actions. Thereby helping the countries to achieve zero emission. Such strategic planning and analysis have been carried out by pManifold for one of its client country.All in all, low carbon emissions can be accomplished with strategic planning and timely actions.