In India, Public Sector Undertakings (PSUs) and established financial institutions are increasingly stepping into the climate technology funding arena, filling a critical gap where traditional venture capitalists (VCs) are hesitant to invest. This strategic shift is driven by the need for patient capital in climate tech, characterized by high risks, long gestation periods, and less immediate consumer-facing applications that VCs typically shy away from. Companies like Cochin Shipyard are investing in innovations such as carbon-negative marine coatings, and Mahanagar Gas is backing electric vehicle infrastructure. The reluctance of VCs stems from their preference for quicker returns, a model less suited to the deep tech and often capital-intensive nature of climate solutions, which require significant research and development. While there's ample capital for growth-stage climate companies, early-stage startups in India face a funding drought. PSUs, alongside global asset managers, view climate technology not just as an ESG theme but as a crucial hedge against future operational, regulatory, and market risks, ensuring their long-term strategic relevance. This growing involvement of public sector entities is vital for India to achieve its ambitious climate targets and foster sustainable growth. Reports indicate that while domestic sources largely drive mitigation finance, PSUs contribute a significant portion of public sector funding. Despite overall growth in climate tech funding, the ecosystem still faces challenges in attracting consistent early-stage and Series A capital, making the role of PSUs even more critical.