INCREASING CLEANTECH INVESTMENTS IN THE INDIAN MSME SECTOR 31 MAY 2016
Clean Technologies – Beyond Business as Usual
Micro, small and medium enterprises (MSMEs) in India have been accepted
as the engine of economic growth. The major advantage of the sector is its
employment potential at low capital cost. With India’s will to embark on a path
towards sustainable consumption and production, clean technologies or
cleantech makes business sense. In order to scale up the adoption of clean
technologies, it is imperative to have several policy interventions to create
cleantech market potential and to accelerate green financing opportunities in
the sector.
“Clean technologies are competitive with, if not superior to,
their conventional counterparts.” – Clean Edge
Clean technologies are the set of technical instruments which promote energy
conservation, material conservation, recycling, renewable energy, green
transportation, etc. It can be defined as any process or service that improves
productivity with cost reduction.
ACMFN – Promoting Cleantech
Asian Cleantech MSME Financing network
(ACMFN) is a 4 year project under the EU SWITCH
Asia II facility, aimed at building and leveraging a
cleantech financing ecosystem to spark improved
access to finance for Asian Cleantech MSMEs in
order to enhance sustainable consumption and
production patterns in Asia.
Under this project, the lead partner: ADFIAP with
technical partner: adelphi with Confederation of
Indian Industry (CII) in India, PUPUK in Indonesia
and CEESTA in China as national focal points, will
support the uptake of cleantech innovation, with
the intent of improving access to finance for
cleantech MSMEs across India.
ACMFN – Key Activities
• Training and capacity building of Financial
Institutions and MSMEs on cleantech
• Identification and shortlisting of cleantech projects
in MSMEs
• Mentoring the select MSMEs to prepare bankable
project document
• Access to finance for shortlisted cleantech projects
• 20 FIs to be coached and supported in development
of cleantech financing products
• Preparation of comprehensive guidebook for
innovative finance products
World Bank – GEF – SIDBI
As a part of Global Environmental Facility
(GEF), the project was launched with the
objective to improve efficiency and reduce
GHG emissions through commercial
investments in energy efficiency in target
Small and Medium Enterprise clusters and
to build their capacity to access commercial
finance.
Under the project guidelines, CII conducted
M&V in more than 450 units and submitted
the unit wise individual reports, cluster wise
reports, and environment & social
management framework cluster profile
report.
As part of the project CII also conducted
more than 40 capacity building workshops
in more than 30 clusters.
For the Indian MSMEs, the project aims to:
• Increase the uptake of clean technologies
• Enhance access to cleantech financing
• Establish cleantech portfolio in financial institutions
• Enable peer learning opportunities
The project objective is to identify cleantech experts to mentor the member companies through capacity building on
cleantech in 150 MSMEs and identifying cleantech projects. With
constant mentoring and guidance, MSMEs will be supported in
identifying cleantech proposal at their facility and to leverage on
the project objectives, financing will be done for identified
cleantech projects prepared for at least 80 MSMEs in India.
ACMFN Project Launch – 23 Feb 2016
Confederation of Indian Industry (CII) as the national focal point
for India in association with ADFIAP and Adelphi, launched the
project on February 23, 2016 in New Delhi, India.
More than 50 participants and stakeholders joined the successful
project launch held at the Lalit Hotel, New Delhi. Eminent
speakers from the EU Delegation to India, CII’s regional Council
on MSMEs, the Integrated Association of Micro, Small & Medium
Enterprises of India (I am SME of India) and the Small Industries
Development Bank of India (SIDBI) shared their insights on
MSMEs and clean technologies.
ACMFN at BLISS Forum 2016
Building Learning in Sustainability Science (BLISS) is organised by
TERI University in New
Delhi in partnership with
the SWITCH-Asia
Regional Policy Support
Component. The 2016
edition took place on April
18-22 and included 14
senior government
officials from the SAARC
countries, besides other
relevant stakeholders such as policy makers from the ministry
levels of SAARC countries, SMEs and entrepreneurs, academia,
financial institutions and industry associations.
During the event, the Confederation of Indian Industry (CII)
introduced ACMFN and presented the newly launched SWITCH-
Asia initiative.
From L to R : Mr S Raghupathy, Deputy Director General, CII; Mr Kavi Arora, Co-Chairman, CII Regional Council on MSME; Mr Octavio B Peralta, Secretary General,, ADFIAP; Ms Sarojini Kaul, Project Manager, Delegation of EU to India; Mr Ramesh Dharmaji, CGM, SIDBI; Mr Rajive Chawla, Chairman, I AM SME OF INDIA
Benef its To Stakeholders
• MSME
⇒ Enhanced competitiveness
⇒ Cleantech project financed
• Financial Institutions
⇒ Increased financing network
⇒ New cleantech portfolio developed
• Original Equipment Manufacturer
⇒ Competitive supply chain
⇒ Green Corporate Image
• Consultant
⇒ Increased networking opportunity
⇒ Increased multi stakeholder engagements
• Technology Supplier
⇒ Effective mass project financing
⇒ Enhanced organizational environmental performance
WAY FORWARD – Further Activities
With the objective of establishing ACMFN as an umbrella network for green financing in MSMEs in Asia, CII is creating an
expert group to steer and guide the activity of the project in India consisting of experts representing the industry, financial
institutions, leading suppliers and consultants. The expert group shall
monitor and evaluate the project activities and to accelerate green
finance for MSMEs joined as a member to this network.
CII will organise “Train the Trainers” workshops at New Delhi and
Hyderabad in the month of June. The workshops are aimed at building
capacity on cleantech financing and technical aspects. At the end of the
workshop, 15 cleantech experts will be identified to guide the project. To
create awareness on cleantech in MSMEs and major financial
institutions, various senstizing workshops across India will also be
organised by CII in 2016.
Who can participate?
With the intent of creating a larger impact in the sector so that most of the units are benefitted, the approach is molded to
garner increased participation through enhanced stakeholder networks and cluster networks. Anyone linked with cleantech
from the MSME, Financial Institution, Original equipment manufacturer, technology supplier and consultants can be a
member to this network.
How to Register?
Members who wish to join ACMFN to boost their stakeholder network and to avail the benefits can register by clicking on
the link : http://goo.gl/forms/iz4y1uC6tx
(Note: There is no fee to register.)
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UPCOMING EVENTS
• Train the Trainers Workshop
⇒ 23/06/16 – 24/06/16 @ Delhi
⇒ 27/06/16 – 28/06/16 @ Hyderabad
Contact Us
Mr. P V Kiran Ananth
Confederation of Indian Industry
Survey No 64, Kothaguda Post, Near HITEC City,
Hyderabad – 500 084
Tel: +91 40 44185111
www.acmfn.com; www.greenbusinesscentre.com