Context:
Recently, the Small Industries Development Bank of India (SIDBI) received approval of funding of $ 215.6 m from the Green Climate Fund for ‘financing mitigation and adaptation projects’ (FMAP).
Relevance:
Facts for Prelims
Green Climate Fund (GCF):
- Overview:
- Establishment: The GCF was established at COP 16 in Cancun, 2010, as a key initiative under the United Nations Framework Convention on Climate Change (UNFCCC).
- Purpose: The GCF aims to support developing countries in their efforts to combat climate change by funding projects and programs that promote low-emission and climate-resilient development.
- Structure: It operates as a legally independent institution with a fully independent secretariat, led by an Executive Secretary. The Secretariat is based in Songdo, South Korea, and began its operations in December 2013.
- Function and Approach:
- Partnership Approach: The GCF uses a country-owned approach to accelerate transformative climate action in developing countries. This involves collaborating with national entities and leveraging flexible financing solutions.
- Expertise: The GCF provides climate investment expertise and supports projects that integrate both mitigation and adaptation measures.
Financing Mitigation and Adaptation Project (FMAP):
- Objective:
- The FMAP aims to provide nearly 10,000 concessional loans to Micro, Small, and Medium Enterprises (MSMEs) to promote the adoption of low-emission and climate-resilient technologies.
- Impact:
- Greenhouse Gas Emission Reduction: The project is expected to reduce greenhouse gas emissions by approximately 35.3 million tonnes, contributing significantly to climate change mitigation efforts.
- Background:
- Previous Projects: This is the second project approved by the GCF led by the Small Industries Development Bank of India (SIDBI). The first project, the Avaana Sustainability Fund, focuses on helping startups access climate finance.
-Source: The Hindu
