SIDBI’s Maiden Green Climate Fund Project Aligning India’s Climate Action Efforts

The world is gearing up to deal with the evil impacts of climate change as these are becoming more visible and hampering developments across sectors. Thus, India is also preparing for its fight against climate change by securing its first Green Climate Fund (GCF) Project named the Avaana Sustainability Fund (ASF). The Small Industries Development Bank of India (SIDBI) an Accredited Entity (AE) of GCF has securely achieved its maiden green climate project in March 2024 at Kigali, Rwanda.

This project worth a market value of US$ 120 million includes GCF investment of US$ 24.5 million. This GCF share of investment is provided by the South Korean division of GCF which is considered the world’s largest climate fund. The ASF project will invest in early-stage companies that have mastered their prototypes, business plans, and service models concerning climate change.

Under this project, SIDBI will achieve technology-driven innovations to witness climate solutions and viability in the country. The fund will assist with adaptation, lessening climate change impacts, and boosting durability in the vulnerable sectors. It will foster and capitalize on the growth of the Micro, Small, and Medium Enterprises (MSMEs) in India by collaborating with ministries including the Department of Financial Services (DFS) and other stakeholders.

For the MSME sector, SIDBI assists national action plans on climate change by administering viable financing and energy efficiency techniques as a part of accountable business practices. The project is celebrated as the maiden success to be administered by SIDBI and India’s first green climate project to intensify climate resilience efforts.

The objective of the GCF is to assist developing countries in achieving their NDC ambitions while engaging in a partnership model and implementing adaptable financing solutions to meet their goals. SIDBI in the past ensures to fulfill its commitment to achieving the country’s Nationally Determined Contributions (NDCs).

The ASF project will further play a vital role in realizing significant changes to utilize its mastery in the climate change ecosystem including climate financing. It will sync India’s climate action efforts with international goals witnessing a more viable and sturdy future action plan to achieve sustainable climate change solutions to save Earth.