Green Climate Fund Grants SIDBI USD 215.6 Mn to Support Indian MSMEs' Climate Initiatives The program aims to help micro, small, and medium enterprises (MSMEs) in India adopt low-emission and climate-resilient technologies, contributing to the country's Net Zero targets.
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The Small Industries Development Bank of India (SIDBI) announced that the Green Climate Fund (GCF) has approved a USD 215.6 million loan facility for implementing the Financing Mitigation and Adaptation Projects (FMAP) in Indian MSMEs.
This program aims to help micro, small, and medium enterprises (MSMEs) in India adopt low-emission and climate-resilient technologies, contributing to the country's Net Zero targets.
It also aims to scale up climate finance for MSMEs by leveraging private sector investments from participating financial institutions (PFIs) like non-banking financial companies (NBFCs), small finance banks (SFBs), and microfinance institutions (MFIs), which will provide concessional loans to MSMEs.
The FMAP facility has two main targets: USD 15.6 million in grant support from GCF will build the capacity of stakeholders, including MSMEs and PFIs, to understand and adopt low-emission and climate-resilient technologies. USD 200 million will provide concessional finance to scale up targeted interventions.
As per the official statement, the FMAP program is expected to reduce GHG emissions by 35.3 million tonnes and benefit more than 10.8 million people by building resilience in vulnerable communities and encouraging women's participation.
According to SIDBI, it has already approved the facility's maiden project, granting USD 24.5 million to the Avaana Sustainability Fund in order to ignite the startup ecosystem.
