Green Climate Fund

About Green Climate Fund:

• It is the world’s largest dedicated climate fund which was set up at COP 16 held in Cancun in 2010.
• It is an operating entity of the financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC).
• It accelerates transformative climate action in developing countries through a country-owned partnership approach and use of flexible financing solutions and climate investment expertise.
• The GCF is a legally independent institution with a fully independent secretariat headed by an Executive Secretary.
• The Secretariat, located in Songdo South Korea, began its work in December 2013. 

What is the Financing Mitigation and Adaptation Project?

• It 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.

· This is the second GCF-approved project led by SIDBI. The first project is the Avaana Sustainability Fund, which helps startups access climate finance.

Q1: What is Small Industries Development Bank of India (SIDBI)?

It was set up on 2nd April, 1990, under an Act of the Indian Parliament Its purpose is to act as the principal financial institution for promotion, financing, and development of the Micro, Small and Medium Enterprise (MSME) sector, as well as for the co-ordination of functions of institutions engaged in similar activities.

Source: SIDBI to build $1 b fund for green financing with $215 m from GCF