The Small Industries Development Bank of India (SIDBI) has secured $24.5 million from the Green Climate Fund (GCF) for its inaugural anchored project, the Avaana Sustainability Fund (ASF), valued at $120 million. This funding marks a significant milestone in climate finance and sustainability initiatives within India.

GCF Approval and Commitment :

* GCF, a pivotal component of the Paris Agreement, approved SIDBI’s ASF project and committed the investment during its 38th board meeting in Rwanda on March 5.
* The ASF project’s primary objective is to invest in early-stage companies leveraging technology-led innovation to drive climate solutions and sustainability in India.

Anticipated Outcomes :

* SIDBI projects significant contributions to climate change mitigation, adaptation, and the enhancement of resilience in vulnerable sectors of the Indian economy through the ASF project.

SIDBI’s Commitment :

* SIDBI views this development as the successful launch of its first project, with several additional projects in the pipeline.
* The bank remains steadfast in its commitment to advancing India’s Nationally Determined Contributions (NDCs) and effecting substantial global change through its expertise in Green and Climate Finance.