SIDBI Takes a Green Leap: Fostering Climate Change Resilience in MSME Sector

SIDBI has set up a dedicated vertical to increase the resilience of MSMEs to combat climate change, in line with India's commitments at COP26. The initiative aligns with the policy push for climate action and clean energy in the Union Budget 2022. SIDBI has partnered with international organizations and brought together regulators and stakeholders in a virtual conference on "Greening Indian Financial System". The bank is poised to channel funds for green investments and render project management support to institutions complementing the climate change agenda.

Key Takeaways:

SIDBI has established a dedicated vertical to combat climate change and facilitate the greening of MSMEs, in line with India's COP26 commitments.
The bank has partnered with Agence Francaise de Development (AFD) and Shakti Sustainable Energy Foundation for a knowledge series on green finance.
SIDBI has started a project "Swach kashi, Swavalambi Kashi" to promote waste recycling and formalized rag pickers in Varanasi, with a similar initiative planned for Delhi.
The bank has partnered with the World Bank to support energy efficiency and solar projects through the End to End Energy Efficiency (4E) Scheme.
SIDBI is offering term loans of up to Rs.300 lakh at 4.90-7% interest rates for eligible energy efficiency and solar projects.
The bank has a risk-sharing facility to support Energy Service Companies (ESCOs) and has 13 partner institutions in this endeavor.
SIDBI has been accredited as an agency of the Green Climate Fund and aims to channel funds for fostering green investments.
The bank has launched the TIFAC-SIDBI (Srijan) Programme to provide highly concessional loans to MSMEs and startups for innovative technology projects.

Statistics:

SIDBI aims to furnish green investments worth Rs. [unknown] through various initiatives.
As many as 13 institutions are partners in the ESCO risk-sharing facility supported by SIDBI.
SIDBI has started a project "Swach kashi, Swavalambi Kashi" with an undisclosed budget allocation.
The bank has a mission to channel funds for fostering green investments by itself, through its partners, and render project management support to other institutions.

Sources:

Union Budget 2022
SIDBI's release announcing the dedicated vertical for combating climate change.
Agence Francaise de Development (AFD)
Shakti Sustainable Energy Foundation
Green Climate Fund
Contify.com distribution.