IP Climate Check: The Rise of Green Patents in India

Introduction

In 2021, at COP26 India announced its ambitious target to achieve net-zero emissions by 2070. Recently, India successfully hit its Nationally Determined Contributions (NDC) target for non-fossil fuel energy capacity in June, 2025 accomplishing a goal of 50% clean energy in its power sources, five years before its original 2030 deadline. India has also enacted several schemes and plans like, National Action Plan on Climate Change (NAPCC), National Biofuel Policy, PM-SURYA and PM-KUSUM among others aimed at bringing sustainable growth with equity. This shows India’s dedication towards becoming a greener and cleaner economy, where green technology has a major role to play. Green Technology, also known as clean technology, refers to the broad range of inventions and technologies which are sustainable and environment-friendly in nature. With this emerges the concept of Green IP, which encompasses several IP rights such as trademarks, patents, copyrights etc. for protecting developments in green technology. To facilitate continued growth of green technology and its widespread adoption in India, the Government needs to work on creating a more robust and comprehensive IP framework for green tech producers.

Existing IP Framework for Green Technology in India

1.     Indian Patent Law and Incentives for Green Technology

A Green patent is like any other patent, but it is particularly granted for sustainable or environmentally friendly technology, such as solar panels, windmills, waste management systems etc. The Patents (Amendment) Rules, 2020, expedited the process for examination of applications which is now to be completed within 12-18 months, rather than the norm of 3-5 years. This is important for green tech licensing as faster grants ensure faster commercialization.

2.     Role of Compulsory Licensing

Compulsory licensing is a tool used by governments for permitting third-parties to use, produce or sell a patented product or process without the consent of the patent holder, for public interest. They primarily relate to patents, but their ambit may be increased to encompass other rights like, copyright, trademark etc. as well.

Section 84 of the Patents Act, 1970 permits the Government to authorize third-parties to use, produce or sell a patented product or process without consent of the patent holder. Here, it enumerates the various grounds for granting a compulsory license where the requirements of the public are not being met, including when the invention is not available to the public at an affordable cost or it is not adequately worked in India. This is done to serve public interest by ensuring accessibility, affordability and local use of essential innovations. 

Additionally, Section 92 of the Patents Act, 1970 empowers government to grant compulsory licensing in the following cases –

a)     National Emergency

b)    Extreme Urgency

c)     For Public Non-commercial Use.

3.     International Influence

On International forums, India is constantly pushing for stronger technology transfer obligations. Article 66.2 of the TRIPS Agreement makes it an obligation for Developed Countries to provide incentives for promoting and encouraging entities within their territory to transfer their technologies to Least Developed Countries (LDCs). India argues that stringent IP regulations act as a hurdle to the transfer and dissemination of green technologies.

India is also an active participant of WIPO Green, a program dedicated to addressing environmental issues such as climate change and food security, by encouraging transfer of sustainable or environmentally friendly technologies. It also serves as an online platform connecting buyers and sellers of green technology.

Key Licensing Models for Green Tech

There are several models which may be implemented for diffusion of green technology in India, -

1. Non-Exclusive Licensing – This model allows a large number of licenses to use the technology, ensuring rapid and widespread diffusion of green tech. Generally, open licensing agreements are used to enable equitable sharing of patented technologies. As it makes green tech more affordable and accessible, it is the way to go to encourage local manufacturing and deployment of green tech.

2. Patent Pools – The patent pooling model accumulates related patents from multiple owners onto a single licensing platform. This prevents “blocking patents” situations where multiple patents are required to build a single product, which is quite common in complex green energy systems. They are extensively used in sectors producing solar cells and EVs to reduce transaction costs. As India lacks a patent pool framework, it becomes an area of interest for policymakers.

3. Cross Licensing and Joint Ventures – Cross-licensing is essentially a collaborative model whereby two or more parties exchange the right to use their respective intellectual properties. Joint ventures help in this aspect as they ensure co-development and shared ownership, which is required for sharing complex research and development (R&D) know-how. It can help in bringing in valuable FDI and accessing advanced green technologies that Indian firms cannot develop alone due to high R&D costs.

Challenges to Green Tech Licensing in India

1. High Transaction and Valuation Costs – Indian startups and Small and Medium Enterprises (SMEs) are immensely impacted by the high costs and complexities of valuation and negotiation of licensing agreements, making it expensive and difficult to acquire these technologies.

2. Technology Adaptation and Know-How Transfer – Merely licensing a patent from the inventor is inadequate as the technical know-how and trade secrets remain barriers for successful implementation of the invention.

3. Enforcement and Quality Control – If the technology is not properly implemented, it may harm the reputation of the licensor and affect environmental goals. In this scenario, it becomes crucial to protect the quality of the licensed green technology.

What is the Way Forward?

1. Incentives for Voluntary Licensing – If the government incentivizes patent holders for voluntarily licensing their green technologies to Indian manufacturers following Fair, Reasonable and Non-Discriminatory (FRAND) terms, it will make it easier for Indian companies to adopt and localize these technologies. There are various ways of providing these incentives such as, tax breaks, deductions, preference in government tenders, grants, subsidies etc.

2. Establishing Sector-Specific IP Mandates – A mandatory disclosure framework would act as a central and curated repository of all relevant patents. Such a framework would make it compulsory for companies to register their green patents with a national body. Thereafter, the creation of a “Green Tech Exchange” platform listing all of these patents will facilitate transfer of green technologies, making them more accessible and affordable.

3. Speedy Dispute Resolution – Green Tech Licensing especially on FRAND terms often lead to different kinds of disputes, which is irksome for both the licensors and licensees. Establishing specialized IP or Commercial Court Benches within the existing judicial framework will ensure faster resolution of disputes and more predictability in decisions. Additionally, mandating mediation and/or arbitration for green tech licensing disputes, before approaching courts will reduce delays and the burden on courts.

Conclusion

India's early achievement of its 50% non-fossil fuel NDC target by June 2025 shows clear national dedication towards its 2070 net-zero goal. To sustain this momentum and translate high-level climate pledges into widespread deployment, the focus must shift to widespread diffusion of green technology.

This requires developing a comprehensive policy triad where voluntary licensing based on FRAND terms is incentivized, a mandatory disclosure framework for NDC-critical IP is established; and setting up of specialized courts or benches for rapid dispute resolution. By harmonizing green tech incentives with accessibility, India can ensure Green IP becomes a facilitator, not a barrier, to achieving its 2030 targets.

Author: Srishti Singh, in case of any queries please contact/write back to us via email to chhavi@khuranaandkhurana.com or at  Khurana & Khurana, Advocates and IP Attorney.

References

·       The Patents Act, 1970 (Act 39 of 1970).

·       Agreement on Trade-Related Aspects of Intellectual Property Rights, Apr. 15, 1994, U.N.T.S. 299, 33 I.L.M. 1197 (1994).

·       Anand Barnabas, Green Innovation and IP: Legal Frameworks for Sustainable Technologies in India, Mondaq (Feb. 5, 2024), https://www.mondaq.com/india/patent/1419990/green-innovation-and-ip-legal-frameworks-for-sustainable-technologies-in-india.

·       Dr. Rohan Cherian Thomas, A Legal Analysis of Transfer and Compulsory Licensing of Green Technology in India to Mitigate Climate Change, 8 Env. L. & P. Rev. 60 (2023).

·       Kumar, R., Jyoti Yadav and Saurabh Sharma, Green Intellectual Property Rights in India: Addressing Greenwashing, Innovation, and Legal Challenges for Sustainable Development Preprints (Sept. 8, 2025),  https://doi.org/10.20944/preprints202509.0632.v1.

·       Law Commission of India, 186^th Report on Proposal to Constitute Environmental Courts (2003).

·       Ministry of Environment, Forest and Climate Change, Parliament Question: - Nationally Determined Contributions, Press Information Bureau (Jul. 21, 2025, 3:53), https://www.pib.gov.in/PressReleasePage.aspx?PRID=2146355.

·       Neha Vivek A, The Rise of Green Patents: Driving Innovation for a Sustainable Future, Global Patent Filing (Jul. 8, 2024) https://www.globalpatentfiling.com/blog/The-Rise-of-Green-Patents-Driving-Innovation-for-a-Sustainable-Future.

·       Robert Fair, Does Climate Change Justify Compulsory Licensing of Green Technology?, 6 BYU Int'l L. & Mgmt. R. 21 (2010), https://digitalcommons.law.byu.edu/ilmr/vol6/iss1/3.

·       XinYu Xing, Licensing Models for Green technology Patent Pools – Should Free Licenses, FRAND Licenses or Compulsory Licenses be Used? (2025) (Master’s Thesis, Lund University).