The Green Climate Fund has granted the Small Industries Development Bank of India (SIDBI) clearance for the Avaana Sustainability Fund (ASF) initiative. The $120 million project will fund MSMEs and early-stage start-ups that are utilizing technology-led innovation to promote sustainability and climate solutions throughout the nation.

The ASF will receive $24.5 million from the Green Climate Fund. Anticipated results include major contributions to climate change adaptation, mitigation, and resilience building in vulnerable Indian economic sectors, according to a release from SIDBI.

One important part of the historic Paris Agreement is the Green Climate Fund. As the biggest climate fund in the world, its goal is to accelerate climate action in developing nations by concentrating on a partnership-driven strategy.

According to the SIDBI, this is the first project that it has both anchored and secured in the nation in recent years. SIDBI stated that this will support the nation's nationally set contributions by emphasizing green finance and sustainability.

The environment, human security, livelihood, the energy sector, and land use—forests and ecosystems—will all be priorities for the new fund.

SIDBI collaborated with a number of stakeholders in 2022 to support MSMEs. The goal of the stakeholders is to assist MSMEs in becoming energy efficient. They include Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Technology Information, and others.