COST OF CAPITAL

If small businesses are to adopt more sustainable practices, institutional support—financial and expertise to navigate the climate finance market—will be essential

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The 3I framework—instruments, Institutions and Initiatives— can serve as a compass for SMEs to effectively capitalise on climate finance. For SMEs, accessing loans, bonds and equity investments, or climate finance, is key to cutting costs and staying competitive in transitioning global supply chains.

Crafting Resilience

India’s shift to a low-carbon economy is driven by institutions supporting SME sustainability efforts. Public and private sector banks and non-banking financial companies (NBFCs), provide long-term credit plus financial guidance.

The government-run department of industries and district industries centres promote sustainable industrial development and infrastructure for SMEs.

Nationally, the Small industries Development Bank of India (Sidbi) provides affordable energy efficiency and green finance schemes, while the Bureau of Energy Efficiency promotes energy-efficient technologies.