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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