New Delhi: The Small Industries Development Bank of India (SIDBI) has signed a USD 100 million Credit Facility Agreement (CFA) with Agence Française de Développement (AFD), the French public financial institution, to scale up green finance solutions for Indian micro, small, and medium enterprises (MSMEs).
Partnership’s Objective & Significance
The partnership aims to provide affordable financing for MSMEs investing in energy-efficient technologies, renewable energy solutions, and climate-friendly business practices, thus driving India’s transition towards a low-carbon economy. The initiative aligns with India’s commitment to achieving carbon neutrality by 2070.
AFD’s Country Director for India, Lise Breuil, emphasized the significance of the agreement, stating that the USD 100 million credit line signed with SIDBI is a significant milestone in enabling MSMEs to invest in sustainable solutions. This initiative aligns with the objectives of the Greening Indian Financial System (GIFS) Platform, which aims to integrate sustainability and climate considerations into the strategies of Indian financial stakeholders.
SIDBI’s Chairman and Managing Director, Manoj Mittal, emphasized that the partnership is a significant step towards India’s national Net Zero commitments. He highlighted that this collaboration supports the shared vision of a greener, more inclusive, responsive, and enterprising economy.
Long-term Goal
The move highlights the growing role of sustainable finance in fostering economic growth while reducing environmental impact. By leveraging this credit facility, SIDBI aims to provide long-term financial solutions that enable MSMEs to adopt cleaner technologies, enhance energy efficiency, and lower their carbon footprint.
The partnership reflects the combined strengths of AFD’s global expertise in climate financing and SIDBI’s deep understanding of the MSME ecosystem, reinforcing their commitment to fostering sustainable economic development and enhancing climate resilience in India.
