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SIDBI’s Avaana Sustainability Fund (ASF)


Why is it in the news?

  • SIDBI’s Avaana Sustainability Fund (ASF) was approved by Green Climate Fund (GCF).

More about the news

  • ASF marks the inaugural anchored fund of the Small Industries Development Bank of India (SIDBI), aiming to address climate change through sustainable investment strategies.
  • ASF is structured as a venture capital fund with a primary goal to invest in early-stage climate technology companies, thereby fostering innovation and entrepreneurship in the climate sector.
  • The fund’s total corpus stands at a substantial $120 million, earmarked for deployment into promising ventures contributing to climate resilience and sustainability.
  • It seeks to identify and support companies that demonstrate potential for significant environmental impact and sustainable growth, thereby driving positive change in the climate landscape.
About Green Climate Fund (GCF)

路聽聽聽聽聽聽 Established in 2010 under the Canc煤n Agreements, the Green Climate Fund (GCF) represents the world鈥檚 largest dedicated climate finance mechanism, aiming to mobilize resources for climate action in developing countries.

路聽聽聽聽聽聽 GCF operates as the financial arm of the United Nations Framework Convention on Climate Change (UNFCCC), with a core mandate to catalyse a transition towards low-emission and climate-resilient development pathways.

路聽聽聽聽聽聽 The fund’s Secretariat is headquartered in Incheon, South Korea, overseeing the implementation and management of climate finance initiatives.

Key Features and Principles:

路聽聽聽聽聽聽 GCF prioritizes the leadership of developing countries in determining climate finance priorities and implementing projects.

路聽聽聽聽聽聽 GCF allocates its financial resources equally between mitigation and adaptation efforts, ensuring a comprehensive approach to addressing climate change challenges.

路聽聽聽聽聽聽 GCF provides support through a range of financial instruments, including grants, concessional loans, guarantees, and equity investments, tailored to meet the diverse needs of recipient countries and projects.

 

Other Significant Climate Finance Mechanisms

路聽聽聽聽聽聽 Global Environment Facility (GEF): Established in 1992, GEF focuses on financing projects targeting global environmental issues, including climate change mitigation and adaptation.

路聽聽聽聽聽聽 Adaptation Fund: Founded in 2001, the Adaptation Fund provides financial assistance for concrete adaptation projects and programs in developing countries, particularly those vulnerable to climate impacts.

路聽聽聽聽聽聽 Climate Investment Funds (CIFs): CIFs, launched in 2008, operate as a multilateral financing mechanism supporting climate-resilient and low-carbon development initiatives across various sectors and regions.

 

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