On August 31, 2026, the Green Indian Financial System (GIFS) Initiative convened a training for financial institutions in Mumbai on Integrating Green Finance Schemes into Textile MSME Lending. The session brought together representatives from public and private sector banks, non-banking financial companies, and microfinance institutions to strengthen their understanding of climate risks, green investment opportunities, and financing pathways across the textile MSME value chain.

The training covered four areas: identifying physical and transition climate risks, mapping green investment opportunities across the textile value chain, understanding existing green finance schemes and de-risking instruments, and integrating climate considerations into credit appraisal and product design. Through case studies, live polls, and a scheme-mapping exercise, participants explored how financial institutions can better identify eligible green investments, combine financing schemes, and embed green finance into existing MSME lending processes.

Discussions highlighted that the key constraint is not always the availability of capital or schemes, but limited awareness and operational familiarity with how to apply them at the point of origination and appraisal. Participants also emphasized the need for clearer, regularly updated information on active schemes, greater capacity to assess sector-specific climate risks, and practical approaches to financing shared and cluster-level green infrastructure.