Home   »   Banking Current Affairs 2023   »   Sidbi gets $24.5 million from GCF...

Sidbi gets $24.5 million from GCF for ‘Avaana’ fund

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.

GCF’s Mandate and Investment Strategy:

  • GCF is mandated to assist developing countries in achieving their NDC ambitions through a partnership-driven approach and the deployment of flexible financing solutions and climate investment expertise.
  • The fund’s investment strategy targets four significant transitions:
    1. Built Environment
    2. Energy Industry
    3. Human Security, Livelihood, Wellbeing
    4. Land Use-Forests and Ecosystems

Sidbi gets $24.5 million from GCF for 'Avaana' fund_4.1