FMAP is expected to reduce greenhouse gas emissions by 35.3 million tonnes and improve water resilience for over 10.8 million people. The programme also encourages women's participation in climate action
The Green Climate Fund (GCF) approved $215.6 million to support climate action in India's micro, small and medium-sized enterprises (MSMEs).
The funds will be used for the Financing Mitigation and Adaptation Projects (FMAP) programme, which aims to help MSMEs adopt low-emission and climate-resilient technologies. This will contribute to India's goal of achieving net zero emissions.
The programme will also leverage private sector investment from participating financial institutions to provide concessional loans to MSMEs for climate technologies.
The Small Industries Development Bank of India (SIDBI) is leading the FMAP programme. SIDBI has a history of promoting new technologies among MSMEs.
A $15.6 million grant to build capacity among stakeholders on low-emission and climate-resilient technologies.
$200 million in concessional financing to support MSMEs adopting these technologies.
This financing will be blended with an additional $800 million from private institutions, creating a $1 billion facility. The programme aims to provide nearly 10,000 concessional loans to MSMEs.
FMAP is expected to reduce greenhouse gas emissions by 35.3 million tonnes and improve water resilience for over 10.8 million people. The programme also encourages women's participation in climate action.
This is the second GCF-approved project led by SIDBI. The first project is the Avaana Sustainability Fund, which helps startups access climate finance.