News Excerpt:

Recently, the $120 million Avaana Sustainability Fund (ASF) anchored by SIDBI as an accredited entity was approved by the world’s largest climate fund Green Climate Fund (GCF). 

About the Avaana Sustainability Fund (ASF):

• The primary aim of the ASF project is to invest in early-stage companies harnessing technology-led innovation to spur climate solutions and sustainability in India. 
• Anticipated outcomes include significant contributions to climate change mitigation, adaptation, and the enhancement of resilience in vulnerable sectors of the Indian economy.
• This is the first project anchored by SIDBI including the first secured for the country in the past few years.
• This project is supposed to go a long way in advancing the country’s nationally determined contributions by effecting substantial global changes through its proficiency in green and climate finance.

SIDBI’s role in advancing the green projects:

• With several additional projects in the pipeline, SIDBI is steadfast in its commitment to advancing India's Nationally Determined Contributions (NDCs) and effecting substantial global change through its proficiency in Green and Climate Finance.
• SIDBI, designated as an Accredited Entity (AE) and Direct Access Entity (DAE) with GCF, is accessing climate finance to implement low-carbon and climate-resilient projects in India. 
• SIDBI takes forward the DAE responsibility under guidance of the Ministry of Environment, Forests and Climate Change (MoEFCC) which is India's Nationally Designated Authority (NDA) for the GCF.
  • SIDBI also liaises with key stakeholders and ministries including the Department of Financial services, MoF which is its parent ministry. 
• With the capacity to anchor proposals from other entities and submit its own, SIDBI remains committed to promoting and financing the development of Micro, Small, and Medium Enterprises (MSMEs).
• Previous projects: In 2022, SIDBI had partnered with multiple stakeholders including German development agency Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Technology Information, Forecasting and Assessment Council (TIFAC), France’s public financial institution Agence française de développement (AFD), etc., in the sustainable development ecosystem to help MSMEs embrace energy efficiency in their operations. 

About GCF:

• The Green Climate Fund, a pivotal component of the historic Paris Agreement, is the World's largest climate fund. 
• Mandated to assist developing countries in raising and realizing their NDC ambitions, the GCF expedites transformative climate action 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: 
  • Built Environment; 
  • Energy Industry; 
  • Human Security, Livelihood, Wellbeing; and 
  • Land Use-Forests and Ecosystems, employing four key approaches.

Conclusion:

SIDBI's accreditation by the Green Climate Fund marks a significant milestone in advancing India's climate goals. The Avaana Sustainability Fund, with its focus on technology-led climate solutions, showcases SIDBI's commitment to fostering sustainable development. This achievement underscores SIDBI's pivotal role in driving climate finance and promoting green projects in India.