SIDBI Secures $24.5 Mn For Its Maiden Climate Tech Fund
- ByStartupStory | March 14, 2024
In a significant development aimed at bolstering India’s climate tech landscape, the Small Industries Development Bank of India (SIDBI) has successfully secured $24.5 million from the Green Climate Fund (GCF) for its debut anchored sustainability and climate-focused fund, the Avaana Sustainability Fund (ASF).
During the 38th meeting of the GCF Board held in Kigali, Rwanda on March 6, the allocation of funds was finalized, marking a pivotal moment in India’s efforts towards fostering innovation and sustainability in the startup ecosystem.
The Avaana Sustainability Fund, totaling $120 million, is poised to make strategic investments in early-stage climate tech startups across India. With a core focus on sectors such as sustainable resource management, mobility and supply chains, and sustainable agriculture and food systems, the fund aims to catalyze transformative solutions addressing pressing environmental challenges.
Highlighting the fund’s objectives, SIDBI emphasized its commitment to supporting low-carbon and climate-resilient businesses. In a statement, SIDBI remarked, “Anticipated outcomes include significant contributions to climate change mitigation, adaptation, and the enhancement of resilience in vulnerable sectors of the Indian economy.”
The Green Climate Fund, a pivotal institution under the Paris Agreement, has been instrumental in mobilizing resources for climate action worldwide. Its support for the Avaana Sustainability Fund underscores the fund’s alignment with global climate objectives.
The Avaana Sustainability Fund’s strategic approach, as outlined by GCF, emphasizes fostering a conducive ecosystem for climate and sustainability leaders while prioritizing social, economic, and environmental impact across diverse sectors.
In a reflection of the growing momentum in India’s climate tech landscape, the announcement comes amidst a resurgence in climate tech-focused funding activities. Notably, SIDBI’s initiative follows closely on the heels of the launch of another climate tech-focused fund by Climate tech venture studio NOW, signaling a renewed commitment towards nurturing innovation in this critical space.
The outlook for the climate tech market in India and the broader Southeast Asia (SEA) region appears promising, with projections estimating a market size of $350 billion by 2030. Against this backdrop, initiatives like the Avaana Sustainability Fund and NOW’s dedicated fund underscore the growing recognition of the immense potential for climate-centric innovation to drive sustainable development and economic growth.
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