SIDBI Secures Green Climate Fund Approval for $120 Million Sustainability Project

The Small Industries Development Bank of India (SIDBI) announced that it has received the Green Climate Fund’s (GCF) approval for the Avaana Sustainability Fund (ASF), a project with a total value of $120 million. This significant step forward was disclosed during the GCF’s 38th board meeting held in Kigali, Rwanda, on March 5. SIDBI, as an accredited entity of the GCF, will see the fund invest $24.5 million into the ASF, marking a notable advancement in India’s climate finance and sustainability efforts.

The ASF initiative aims to inject funds into early-stage enterprises that are at the forefront of using technological innovations to address climate change challenges. The project is designed to significantly aid in climate change mitigation, adaptation, and improving resilience within key sectors vulnerable to climate impacts. This marks a pioneering move by SIDBI, representing the first such project to be anchored by the bank and the first of its kind for India in recent years, aligning closely with the nation’s commitments under the Paris Agreement.

The Green Climate Fund, recognized as the largest climate fund globally, plays a crucial role in supporting developing countries to meet and enhance their nationally determined contributions (NDCs) towards global climate action. SIDBI, having the status of an accredited entity and direct access entity (DAE) with the GCF, will leverage this opportunity to fund projects that promote low-carbon and climate-resilient development across India, under the guidance of the Union Ministry of Environment, Forests and Climate Change and in coordination with relevant stakeholders and ministries.