The Small Industries Development Bank of India (SIDBI), which received approval of funding of $ 215.6 m from the Green Climate Fund, will create a corpus of $1 billion for 'financing mitigation and adaptation projects' (FMAP) of Medium and Small Enterprises (MSMEs). The board of the Green Climate Fund, which is an entity set up by the United Nations Framework Convention on Climate Change (UNFCCC), approved a $200 million loan and $15.6 million grant for capacity building to SIDBI.
A press release issued by SIDBI says that the FMAP facility would provide 'nearly 10,000 concessional loans to MSMEs', To promote low-emission, climate-resilient technologies. The FMAP programme is expected to result in a reduction in greenhouse gas emissions to the tune of 35.3 million tonnes. Adaptation activities would lead to 'substantial water savings' and building resilience in vulnerable communities, 'benefiting more than 10.8 million beneficiaries, it says.
The Green Climate Fund (GCF), according to its website, is 'the world's largest dedicated climate fund'. It is an operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC). The loan to SIDBI is part of funding approvals worth $1 billion for 17 projects in 35 developing countries.
Study Notes
Category
