The Green Climate Fund’s substantial investment in Avaana Capital’s sustainability initiative signifies transformative impact of climate-focused investments in the region

Avaana Capital, renowned for its thematic strategy and focus on sustainable investments, has introduced the approval of investment in the “Avaana Climate and Sustainability” fund by the Green Climate Fund (GCF). This initiative, valued at USD 120 million, with a significant investment of USD 24.5 million from GCF, marks a substantial stride toward fostering climate innovation and sustainability in India. The approval was granted during the 38th Board Meeting of the GCF held in Kigali, Rwanda, on March 5th, 2024.

Anjali Bansal, Managing Founder of Avaana Capital, expressed delight at the news, stating, “This milestone represents the culmination of dedicated efforts, with gratitude extended to the Green Climate Fund team for their unwavering support and guidance throughout this journey.” The collaboration underscores GCF’s additionality and the shared commitment to advancing climate action.

Avaana’s partnership with the GCF emphasises the transformative impact of technology and innovation in shaping low-emission and climate-resilient development pathways. Bansal highlighted, “The Green Climate Fund’s investment in India’s first tech-led climate VC underscores the transformative impact that technology and innovation have in carving low-emission and climate-resilient development pathways.”

The GCF, recognized as the world’s largest climate fund, commits financial resources for the adaptation and mitigation of climate change effects, targeting key areas such as Energy Transition, Mobility, Supply Chains, Sustainable Agriculture, and Food Systems.

Avaana extends gratitude to mission-aligned institutions, including SIDBI’s Green Finance Vertical team, for their invaluable role as the GCF Accredited Entity. The approval of the Avaana Sustainability Fund marks a significant push towards advancing India’s commitment to driving climate innovation and taking action.

“We are grateful for all the support from our partners SIDBI as the Accredited Entity, FCDO, and others,” concluded Bansal.

Kavita Sinha, Director of GCF Private Sector Facility, remarked, “The Green Climate Fund is proud to partner with Avaana Capital and SIDBI to support the Avaana Sustainability Fund that aims to support commercialization of local, early-stage climate technology ventures.”

Avaana’s philosophy revolves around the belief that substantial outcome creation along India’s path towards net zero emissions necessitates an ecosystem approach, integrating critical elements of technology, policy, industry, and academia. The fund follows a proactive thesis-led sourcing approach for tracking high-quality entrepreneurs and facilitating their journey to scale.