SIDBI and Shell Foundation launch US$ 3.1 million initiative to expand access to green finance for n

New Delhi, India, May 05, 2026 (GLOBE NEWSWIRE) -- The Small Industries Development Bank of India (SIDBI), India’s principal financial institution engaged in promoting, financing & developing the micro, small and medium enterprises (MSMEs) sector and Shell Foundation, an independent charity that empowers underserved customers to raise their incomes while lowering emissions, announced today that they have partnered to launch  the “Empower Nanopreneurs for Green Transition Risk Sharing Facility (EN-Trans RSF)” – a groundbreaking initiative designed to accelerate India’s transition to a green economy by improving access to finance for nano-entrepreneurs. This project was also funded as part of the Transforming Energy Access (TEA) partnership with the UK Foreign, Commonwealth & Development Office (FCDO).

While nano-entrepreneurs are a vital economic segment sustaining approximately 500 million lives in India, they often face significant challenges in securing affordable financing for clean energy and productive-use technologies. This initiative aims to bridge the gap, fostering the adoption of innovative Productive Use Energy (PUE) solutions, especially targeting low-income communities and supporting the nation's Net Zero 2070 commitment.

Backed by a $3.1 million grant from Shell Foundation, the EN-Trans RSF provides a second-loss risk coverage to Participating Financial Institutions (PFIs), including SIDBI as a lender, for loans extended to low-income communities.

Key Highlights of the EN-Trans RSF include: 

• Empowering nano‑entrepreneurs: Expanding access to clean energy solutions—such as solar dryers for spices, fruits and vegetables, solar cookstoves, and solar looms—that improve productivity, resilience and incomes. Over a six‑year project cycle, this is expected to benefit approximately 112,000 to 443,000 people, depending on average loan size.
• Catalysing the green transition: Accelerating the adoption of innovative green technologies in low‑income communities, in line with India’s Net Zero 2070 ambition, by providing guarantee coverage for around INR 250 crore of green loans. These loans will be delivered by partner financial institutions, including public and private sector banks, Regional Rural Banks, Cooperative Banks, Small Finance Banks, and Non‑Banking Financial Companies (including NBFC‑MFIs) licensed by the Reserve Bank of India.
• Risk mitigation: Structured as a second‑loss facility, under which partner financial institutions absorb initial defaults of up to 3 per cent, with EN‑Trans RSF providing coverage for a further 10 per cent (i.e. from 3 per cent to 13 per cent). This significantly reduces credit risk for lenders.
• Comprehensive support: Complementing capital with technical assistance, including training, research, monitoring and evaluation, and project management, to support effective implementation and ensure measurable impact.f

Jonathan Berman, CEO of Shell Foundation commenting on the partnership said: “Nano-entrepreneurs are at the heart of India’s economy, yet too often they are excluded from the finance needed to adopt clean, productive technologies. This partnership with SIDBI demonstrates how smart risk-sharing mechanisms can unlock private capital at scale, enabling low-income entrepreneurs to grow their businesses while accelerating India’s transition to a low-carbon future. This initiative reflects our commitment to solutions that deliver both economic opportunity and climate impact.” 

The launch of the EN-Trans RSF underscores SIDBI’s and Shell Foundation’s commitment to building a more inclusive and sustainable future for India.