The project, valued at $120 million, will invest in early-stage start-ups and MSMEs.
The Small Industries Development Bank of India (SIDBI) has secured approval from the Green Climate Fund for its project, the Avaana Sustainability Fund (ASF). The project, valued at $120 million, will invest in early-stage start-ups and MSMEs that are using technology-led innovation to spur sustainability and climate solutions in the country.
The Green Climate Fund will be contributing $24.5 million to the ASF. In a statement, SIDBI said, “Anticipated outcomes include significant contributions to climate change mitigation, adaptation, and the enhancement of resilience in vulnerable sectors of the Indian economy.”
The Green Climate Fund is a significant component of the historic Paris Agreement. It is the world’s largest climate fund and intends to focus on a partnership-driven approach to expedite climate action in developing countries.
This is the first project both anchored and secured by the SIDBI in the country in the past few years, said the SIDBI. Through a focus on green finance and sustainability, this will help promote the country’s nationally determined contributions, said SIDBI.
The new fund will focus on areas that include the environment, human security, livelihood, energy industry, and land use—forests and ecosystems.
In 2022 as well, SIDBI partnered with various stakeholders to help MSMEs. The stakeholders include Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Technology Information, and others, and they intend to help MSMEs become energy efficient.