Avaana Sustainability Fund, SIDBI’s green climate initiative has secured a $120 million green climate fund project. SIDBI’s expertise in green and climate finance will significantly advance the nation’s nationally determined contributions by bringing about global changes

In a press note, SIDBI said that the Green Climate Fund (GCF) has approved the project, the development bank’s first anchored project in the segment.

The closure was declared at the 38th board meeting of the GCF, which will invest $24.5 million in the fund, in Kigali, Rwanda.

The investment strategy of the fund employs four key approaches to target four significant transitions: the built environment; the energy industry; human security, livelihood, and wellbeing; and land use-forests and ecosystems.

The principal objective of the ASF initiative is to provide capital to nascent enterprises that are leveraging technology-driven innovation to promote sustainability and climate solutions in India. Significant contributions to adaptation, mitigation, and strengthening of resilience in economically vulnerable sectors are among the expected outcomes.

Thanks to its experience in green and climate finance, this project—the first that SIDBI has anchored and the country has secured in recent years—will greatly advance the country’s nationally determined contributions by bringing about significant changes on a global scale, according to SIDBI. The Green Climate Fund is also a crucial part of the historic Paris Agreement.

The GCF accelerates transformative climate action by utilizing climate investment expertise and flexible financing solutions in a partnership-driven manner, SIDBI said in the statement.

It must be noted that working under the direction of the Union Ministry of Environment, Forests, and Climate Change, SIDBI is utilizing climate finance to implement low-carbon and climate-resilient projects. The development bank has also been designated as an AE and direct access entity (DAE) with the GCF. Additionally, the bank will communicate with important ministries and parties, such as the Department of Financial Services.