Context
Recently, SIDBI has secured a substantial investment of $24.5 million from the Green Climate Fund (GCF) for its Avaana Sustainability Fund (ASF).
Background:
The Green Climate Fund (GCF) is the world’s largest climate fund, established within the framework of the United Nations Framework Convention on Climate Change. Its mission is to assist developing countries in both adaptation and mitigation practices to counter the effects of climate change.
About Avaana Sustainability Fund (ASF):
- The Avaana Sustainability Fund (ASF) is a USD 120 million venture capital fund that aims to invest in early-stage climate technology companies in India.
- This fund is launched by the Small Industries Development Bank of India (SIDBI).
- ASF focuses on supporting the transition to low-carbon and climate-resilient development pathways by investing in innovative technologies across key sectors such as sustainable resource management, mobility and supply chains, and sustainable agriculture and food systems.
- ASF’s strategies include investing in low-carbon and climate-resilient businesses, adding value for climate and sustainability leaders, establishing a virtuous cycle of sourcing and value addition for the larger ecosystem, and focusing on social, economic, and environmental impact with tailored investment strategies across various sectors.
- The Green Climate Fund (GCF) has approved the ASF project, which seeks to support India’s endeavors in tackling climate challenges and fostering sustainable solutions.
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