Development bank SIDBI on Monday said it has secured approval from the Green Climate Fund (GCF) for its first anchored project, Avaana Sustainability Fund (ASF), valued at $120 million.
The closure was announced at the 38th board meeting of the GCF, which will invest $24.5 million in the fund, in Kigali, Rwanda, on March 5, SIDI, an accredited entity of GCF, said in a statement.
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 the country. The anticipated outcomes include significant contributions to climate change mitigation, adaptation, and the enhancement of resilience in vulnerable sectors of the economy.
This is the first project anchored by SIDBI including the first secured for the country in the past few years and will 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 said. The Green Climate Fund is a key component of the historic Paris Agreement and also the world's largest climate fund.
Mandated to assist developing countries in raising and realizing their nationally determined contributions (NDC) ambitions, the GCF expedites transformative climate action through a partnership-driven approach and deploying 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.
SIDBI, designated as an AE and direct access entity (DAE) with the GCF, is accessing climate finance to implement low-carbon and climate-resilient projects and will work under the guidance of the Union Environment, Forests and Climate Change ministry.
The bank will also liaise with key stakeholders and ministries including the department of financial services.
