Supporting an environmental credit line for Indian MSMEs

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Recognising the importance of de-linking economic growth from energy consumption and environmental impacts, India is increasingly emphasising energy efficiency and cleaner production in its industries. Thus, the Small Industries Development Bank of India (SIDBI) provides a dedicated credit line of 38.5 million Euro to Micro, Small and Medium sized Enterprises (MSMEs) for investments in cleaner production.

Over the next two years, adelphi in cooperation with the International Institute for Energy Conservation (IIEC) and the Dutch consulting firm Triodos Facet, is supporting SIDBI with setting up, disbursing and monitoring of the credit line. This involves developing a monitoring and verification system for loan disbursement that will enable SIDBI to monitor the actual emission reductions achieved per loan as well as the total reduction over the lifetime of the credit lines.

Additionally, the consulting team will recommend institutional framework conditions for successful loan disbursement; provide training and capacity building; technical evaluation of loan applications; and a focused marketing strategy. Furthermore, adelphi will assist MSMEs in identifying suitable investment opportunities and support with the development of loan applications.