Green Climate Fund, which provides funding for low-emission and climate-resilient projects globally, will invest in SIDBI’s programme to support micro, small, and medium enterprises (MSMEs), the Indian state-run organisation said Monday.
Green Climate Fund, established under the United Nations Framework Convention on Climate Change, approved an investment of $215.6 million in South Korea last week to help the implementation of Small Industries Development Bank of India’s Financing Mitigation and Adaptation Projects (FMAP) programme.
The funding is aimed at supporting the adoption of low-emission and climate-resilient technologies by MSMEs in India. The programme, FMAP, will also target scaling up access to climate finance for MSMEs by leveraging investments from private-sector entities including non-banking financial companies, small finance banks and microfinance institutions (MFIs) which will then be utilised to provide concessional loans to MSMEs.
The capital will be utilised to meet a two-fold target. About $15.6 million grant support from GCF will be utilised to build the capacity of various stakeholders including MSMEs and participating financial institutions to understand the various low emission and climate resilient technologies in the market and the rest $200 million to provide the concessional finance to enable scaling up the targeted intervention.
This is the Green Climate Fund’s second endeavour to back Indian climate and sustainability-focused players. The fund invested about $24.5 million in Indian venture capital firm Avaana Capital’s Climate and Sustainability fund in March this year.
