INCREASING CLEANTECH INVESTMENTS IN THE INDIAN MSME … · Asian Cleantech MSME Financing network (ACMFN) is a 4 year project under the EU SWITCH Asia II facility, aimed at building

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.)

___________________________________________________________________________________

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

[email protected]

www.acmfn.com; www.greenbusinesscentre.com