SIDBI, towards its continuing effort for MSMEs to embrace energy efficiency in operations and reduce their Carbon Footprint status, entered MoUs with stakeholders that will contribute to India’s SDG 2030 Targets.
Waste Solutions for a Circular Economy in India
An agreement was signed to announce the collaboration of Small Industries Development Bank of India (SIDBI) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH for operating a Risk Sharing Facility (RSF) housed within the NAMA Facility entitled ‘Waste Solutions for a Circular Economy in India’ project. The project has the Ministry of Environment, Forest and Climate Change (MoEFCC) as the nodal Ministry and the Ministry of Housing and Urban Affairs (MoHUA) as the implementation partner Ministry.
SIDBI will operate the RSF that provides credit guarantees to loans from commercial banks or NBFCs (Non-Banking Financial Companies) in order to accelerate activities of waste management companies, low-carbon waste management solutions, biomethanation, recycling, composting, and Refused Derived Fuel for use in cement kilns.
The RSF’s initial budget would be EUR 4.2 million which will be from the NAMA Facility. The project will also support building of awareness and capacities among various stakeholders, thereby enhancing the success of the RSF. Around 15 waste management companies have already shown interest in accessing debt guarantee facility from the RSF during the pre-launch event held in August.
The NAMA Facility is a multi-donor programme that supports the implementation of NAMA Support Projects (NSPs) that affect sector-wide shifts toward sustainable, irreversible, and carbon-neutral pathways. It is funded by the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV), the UK Department for Business, Energy and Industrial Strategy (BEIS), the Danish Ministry of Climate, Energy and Utilities (KEFM) and Ministry of Foreign Affairs (MFA), the European Commission (EU), and the Children’s Investment Fund Foundation (CIFF).