SIDBI Secures First Green Climate Fund Project This project marks the success of first project anchored by SIDBI including first secured for India in the past few years by an Indian Accredited Entity.
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The Small Industries Development Bank of India (SIDBI) has approved GCF- its first anchored project the "Avaana Sustainability Fund (ASF)," valued at USD120 million, including a USD24.5 million GCF investment.
This achievement was realized at the 38th Board Meeting of the GCF, convened in Kigali, Rwanda, on March 5, 2024. The primary aim of the ASF project is to invest in early-stage companies harnessing technology-led innovation to spur climate solutions and sustainability in India. Anticipated outcomes include significant contributions to climate change mitigation, adaptation, and the enhancement of resilience in vulnerable sectors of the Indian economy.
This project marks the success of first project anchored by SIDBI including first secured for India in the past few years by an Indian Accredited Entity (AE). With several additional projects in the pipeline, SIDBI is steadfast in its commitment to advancing India's Nationally Determined Contributions (NDCs) and effecting substantial global change through its proficiency in Green and Climate Finance.
The Green Climate Fund, a pivotal component of the historic Paris Agreement, is World's largest climate fund. Mandated to assist developing countries in raising and realizing their NDC ambitions, the GCF expedites transformative climate action through a partnership-driven approach and the deployment of flexible financing solutions and climate investment expertise. The fund's investment strategy targets four significant transitions: Built Environment; Energy Industry; Human Security, Livelihood, Wellbeing; and Land Use-Forests and Ecosystems, employing four key approaches.
SIDBI, designated as an AE and Direct Access Entity (DAE) with GCF, is accessing climate finance to implement low-carbon and climate-resilient projects in India. SIDBI takes forward the DAE responsibility under guidance of the Ministry of Environment, Forests and Climate Change (MoEFCC) which is India's Nationally Designated Authority (NDA) for the GCF.
SIDBI also liaise with key stakeholders and ministries including Department of Financial services, MoF which is its parent ministry. With the capacity to anchor proposals from other entities and submit its own, SIDBI remains committed to promoting and financing the development of Micro, Small, and Medium Enterprises (MSMEs).
