SIDBI Gets $24.5 Mn from Green Climate Fund For Climate Project

SIDBI Secured $24.5 Mn from Green Climate Fund For Maiden Climate Project

By Akash Dhiman/ Updated On Wed, Mar 13th, 2024

Highlights :

The Green Climate Fund is a key component of the historic Paris Agreement and also the world’s largest climate fund.

SIDBI Secured $24.5 Mn from Green Climate Fund For Maiden Climate Project

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Small Industries Development Bank of India (SIDBI) has secured $24.5 Mn from Green Climate Fund (GCF) for its maiden anchored sustainability and climate focussed fund Avaana Sustainability Fund (ASF). The development came during the 38th meeting of the GCF Board in Kigali, Rwanda on March 6, reported the news agency PTI.

The Green Climate Fund is a key component of the historic Paris Agreement and also the world’s largest climate fund. According to GCF, the fund has been in the pipeline since February last year. The fund will also be looking to invest in low-carbon and climate-resilient businesses.

“ASF is a $120 million venture capital fund that aims to invest in early-stage climate tech startups in India. With the $120 Mn kitty, the fund will be investing in startups and MSMEs in sectors like sustainable resource management, mobility and supply chains, and sustainable agriculture and food systems,” SIDBI said in a statement.

“Anticipated outcomes include significant contributions to climate change mitigation, adaptation, and the enhancement of resilience in vulnerable sectors of the Indian economy,” the statement added.

With a total value of $120 Mn, the fund will look to cull 4.7 Mn emissions.

“ASF’s strategies include investing in low-carbon and climate-resilient businesses, adding value for climate and sustainability leaders, establishing a virtuous cycle of sourcing and value addition for the larger ecosystem, and focusing on social, economic, and environmental impact with tailored investment strategies across various sectors,” Green Climate Fund GCF said in a media release.

Recently, SIDBI said it plans to raise Rs 5,000 crore from the rights issue next financial year to fund business growth.

Last year, Tata Power Solar Systems Ltd & SIDBI signed a Memorandum of Understanding (MoU) to offer easy financing options for MSMEs. TPSSL is one of India’s largest integrated solar companies and a wholly-owned subsidiary of Tata Power Renewable Energy Limited (TPREL). MSMEs that are willing to opt for rooftop solar PV plants or associated services from Tata Power or its authorized channel partners across India will be financially supported by SIDBI under the scheme.