MoU Inked between SIDBI And AfD For Greening The Finance For Net Zero 2070

On 29th November 2022, SIDBI, and AGENCE FRANÇAISE DE DÉVELOPPEMENT (AfD) joined in partnership with the aim of strengthening the cooperation on climate change and greening finance.

AFD is a public development finance institution which objective is to support both India’s international commitments on reducing greenhouse gases emissions and to ensure economic and social development of the country. AFD is a member of IDFC.

SIDBI a public development bank which promotes the Micro, Small and Medium Enterprises (MSME) sector in India, providing green finance and tools to its beneficiaries. SIDBI is a member of IDFC and heading the climate-working group of IBA.

This Partnership will explore the potential sustainable finance facility towards green finance and other projects related to greening SIDBI financial system, and in turn aiming to strengthen the implementation of the Paris Agreement and the Net Zero 2070 objectives.

A steppingstone arrangement used in seeking the cooperation opportunities between AfD and SIDBI to support and encourage programs and projects that are in line with green strategies.

The signatories will define potential areas of cooperation and business development related to the Green Indian Financial System aka the GIFS Initiative, develop projects whose objective is to green the financial system in India and other projects related to sustainable finance, and provide consultancy services for technical assistance.

About AfD

AFD Group implements France’s policy in the areas of development and international solidarity. The Group includes Agence Française de Développement (AFD), which finances the public sector and NGOs, as well as research and education in sustainable development. The teams are involved in multiple projects to promote common good in 115 countries, in territories in crisis, and in Overseas Territories. Their  projects deal with climate change (projects aiming to be 100% in line with the Paris Agreement), gender equality, biodiversity, peace (via the Minka Peace and Resilience Fund), education, and health.

About SIDBI

SIDBI is the principal financial institution set up under an Act of Parliament for promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector and for coordination of functions of institutions engaged in similar activities. Over the years, SIDBI has been instrumental in taking up various initiatives for the development of the MSME sector through credit and more importantly, credit plus activities.