Small Industries Development Bank of India (SIDBI) has received $24.5 million from the Green Climate Fund (GCF). For its first anchoring sustainability and climate-focused fund, the Avaana Sustainability Fund (ASF).
The development occurred on March 6 at the 38th GCF Board meeting in Kigali, Rwanda.
ASF is a $120 million venture capital fund with the goal of funding Indian climate tech firms in their early stages. According to a statement from SIDBI, the fund would use the $120 million capital to invest in MSMEs and startups in industries such sustainable resource management, supply chains and mobility, and sustainable agricultural and food systems.
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The fund intends to pursue investments in climate-resilient and low-carbon businesses.
Significant contributions to adaptation, mitigation, and strengthening of resilience in climate change-vulnerable sectors of the Indian economy are among the anticipated benefits, the statement continued.
The largest climate fund in the world and a vital part of the historic Paris Agreement is the Green Climate Fund. The fund has reportedly been in the works since February of last year, according to GCF.
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The fund, which has a $120 million overall value, aims to reduce 4.7 million emissions. The fund is classified as a Category “C” fund by the UN, which indicates that there are either no or very little negative risks involved.
It’s interesting to note that SIDBI’s fund is the second one this month to focus on climate technology. The Indian debut of climate tech venture studio NOW, which has a $2 million fund set up specifically to invest in early-stage deeptech Indian firms, was officially revealed on March 7.
About SIDBI
SIDBI was designated as the principal financial institution for the promotion, financing and development of industry in the small-scale sector and to co-ordinate the functions of the institutions engaged in the promotion, financing or developing industry in the small-scale sector and for matters connected therewith or incidental thereto in the charter that established it, the Small Industries Development Bank of India Act, 1989.
