The Small Industries Development Bank of India (SIDBI) announced on Monday that the Green Climate Fund (GCF) has approved a $215.6 million loan facility for one of its projects.
This funding is designated for the implementation of Financing Mitigation and Adaptation Projects (FMAP) within Indian small businesses, according to an official statement.
The initiative aims to support Indian micro, small, and medium enterprises (MSMEs) in adopting low-emission and climate-resilient technologies, thereby contributing to the country’s net-zero targets.
Indian small businesses will receive concessional loans to adopt various mitigation and adaptation technologies under this facility.
The funding includes a $200 million facility for concessional loans and an additional $15.6 million in grant support from GCF. The grant will be used to build the capacity of various stakeholders, including MSMEs and PFIs, to understand and implement low-emission and climate-resilient technologies.
The FMAP program is expected to result in greenhouse gas (GHG) emission reductions of approximately 35.3 million tonnes. Additionally, the adaptation activities will lead to substantial water savings and enhance the resilience of vulnerable communities, benefiting more than 10.8 million individuals.
SIDBI has already approved its first project under this facility by allocating $24.5 million to Avaana Sustainability Fund to foster the startup ecosystem.
