About

• The Green Climate Fund (GCF) is the world’s largest dedicated fund helping developing countries respond to climate change. 
• It was set up by the United Nations Framework Convention on Climate Change (UNFCCC) in 2010.
• It is designed as an operating entity of the Convention’s financial mechanism and is headquartered in the Republic of Korea. 
• The GCF’s aim is to expand collective human action to respond to climate change. It allocates its resources to low-emission and climate-resilient projects and programmes in developing countries. 
• The Fund pays particular attention to the needs of societies that are highly vulnerable to the effects of climate change, in particular Least Developed Countries (LDCs), Small Island Developing States (SIDS), and African States.

Why in News?

• Small Industries Development Bank of India (SIDBI) has received $24.5 million from Green Climate Fund (GCF) for its maiden anchored project ‘Avaana Sustainability Fund (ASF)’ valued at $120 million.
• The primary aim of the ASF project is to invest in early-stage companies harnessing technology-led innovation to spur climate solutions and sustainability in India. 

About SIDBI

• SIDBI was established in 1990 under an Act of Parliament.
• It acts as the principal financial institution for promotion, financing and development of the Micro, Small and Medium Enterprise (MSME) sector as well as for co-ordination of functions of institutions engaged in similar activities.
• SIDBI facilitates and strengthens credit flow to MSMEs and addresses both financial and developmental gaps in the MSME eco-system.