SIDBI and French Development Agency Sign Agreement to Work Together on Climate Change and Green Finance

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SIDBI and Agence française de développement (AFD), France's public financial organisation, announced the signing of a memorandum of understanding to deepen collaboration on climate change and "greening" finance.

The collaboration would look at a "sustainable financing facility" for green finance and other SIDBI-related projects to strengthen India's climate pledge to the Paris Agreement and net-zero emissions target by 2070.

"The partnership is a stepping stone arrangement used by AfD and SIDBI to support and encourage programmes and projects that are in line with green strategies," SIDBI explained.

It said the two organisations would look for ways to work together and find new business opportunities related to the Green Indian Financial System (GIFS) initiative. They will also work on projects to green India's financial system and other projects related to sustainable finance and offer consulting services for technical assistance.

GIFS initiative was launched by SIDBI, AFD, and Shakti Sustainable Energy Foundation to enable discussions on greening the Indian financial system among all stakeholders.

SIDBI inked an MoU with the government energy efficiency body Bureau of Energy Efficiency (BEE) earlier this month to promote energy efficiency finance for MSMEs and study internet of things (IoT)-based solutions, greening MSMEs, capacity building of various stakeholders, and so on.

SIDBI has also worked with the German development organisation Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH and the Technology Information, Forecasting, and Assessment Council (TIFAC) to help micro, small, and medium-sized enterprises (MSMEs) become more energy efficient so that they can help India reach its SDG 2030 goals.

According to India's updated Nationally Determined Contribution (NDC) to the UN Framework Convention on Climate Change (UNFCCC), the country wants to cut its GDP emissions intensity by 45 per cent by 2030 compared to 2005 and get about 50 per cent of its installed electric power capacity from sources other than fossil fuels by 2030.

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Source: Financial Express

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