SIDBI’s Avaana Sustainability Fund (ASF) approved by Green Climate Fund (GCF) | Current Affairs | Vision IAS
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SIDBI’s Avaana Sustainability Fund (ASF) approved by Green Climate Fund (GCF)

Posted 15 Mar 2024

Updated 27 Mar 2024

2 min read

  • ASF is first anchored fund of the Small Industries Development Bank of India (SIDBI). 
    • ASF is a venture Capital fund 
    • Aim:  To invest in early-stage climate technology companies 
    • Project Value: $120 million
    • ASF's strategies include: 
      • Investing in low-carbon and climate-resilient businesses,
      • Adding value for climate and sustainability leaders etc. 

 

  • About GCF
    • It is the world’s largest dedicated climate fund. 
    • Established under the Cancún Agreements in 2010.
    • Mandate is to foster a paradigm shift towards low emission, climate-resilient development pathways in developing countries. 
    • Operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC).
      • It is accountable to the United Nations.
      • Secretariat is located in Incheon- South Korea.
    • Key features 
  • Country-driven approach i.e., developing countries lead GCF programming and implementation.
  • Balanced allocation i.e., GCF is mandated to invest 50% of its resources to mitigation and 50% to adaptation in grant equivalent.
  • Provide financial support through flexible combination of grant, concessional debt, guarantees or equity instrument.

 

Other important Funds for Climate Finance:

  • Global Environment Facility (GEF): It was established in 1992 Rio Earth Summit.
  • The GEF Trust Fund was established to help tackle our planet’s most pressing environmental problems.
  • Adaptation Fund: Established in 2001, aims to finance concrete adaptation projects and programmes in developing country Parties to the Kyoto Protocol
  • Climate Investment Funds (CIFs): Established in 2008, a multilateral climate fund
  • Tags :
  • SIDBI
  • Green Climate Fund (GCF)
  • Avaana Sustainability Fund (ASF)
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