SIDBI Secures USD 120 Mn for First Green Climate Fund Project The Avaana Sustainability Fund Project is a step toward SIDBI's goal of using green and climate finance to significantly alter the world while promoting India's Nationally Determined Contributions.
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Small Industries Development Bank of India (SIDBI) has announced the approval of the Green Climate Fund (GCF) for its first-ever green climate project, the Avaana Sustainability Fund (ASF), to invest USD 120 million in climate-focused firms.
The world's largest climate fund, GCF, with its headquarters in South Korea, contributed USD 24.5 million to the investment.
The principal objective of the ASF initiative is to provide capital to early-stage companies that are leveraging technology-driven innovation to promote climate solutions and sustainability in India. This includes mitigating the effects of climate change, adapting to them, and enhancing the resilience of vulnerable sectors of the Indian economy.
The Green Climate Fund is mandated to help developing countries in raising and realising their NDC ambitions. Through the use of flexible funding options, climate investment expertise, and a partnership-driven approach, the GCF accelerates transformative climate action.
Using four primary methodologies, the fund's investment strategy focuses on four main transitions: the built environment; the energy industry; human security, livelihood, and wellbeing; and land use-forests and ecosystems.
Under the new project, SIDBI will liaise with key stakeholders and ministries, including the Department of Financial Services of the Ministry of Finance. With the capacity to anchor proposals from other entities and submit its own, SIDBI said it is committed to promoting and financing the development of micro, small, and medium enterprises (MSMEs).
SIDBI claims that it actively supports national action plans on climate change and champions responsible business practices, including sustainable financing and energy efficiency initiatives within the MSME sector.
SIDBI stated in a statement that with several additional projects in the pipeline, SIDBI is steadfast in its commitment to advancing India's Nationally Determined Contributions (NDCs), effecting substantial global change through its proficiency in green and climate finance.
