ISLAMABAD: Pakistan has received funding in the amount of $50 million from the Green Climate Fund (GCF) for a project that will use the country’s dynamic and expanding start-up ecosystem to develop domestic climate solutions.
GCF and the National Rural Support Programme (NRSP) in Pakistan are utilizing Pakistan’s dynamic and expanding start-up ecosystem to support locally developed climate solutions. As an anchor investor in the Climaventures Fund, GCF will also make a first-loss equity commitment and provide funding for a venture accelerator.
At its meeting in Songdo, Incheon, South Korea, the GCF executive board approved this as one of 16 projects.
Pakistan, according to the GCF board, is extremely susceptible to the effects of climate change, particularly droughts and floods. The nation’s broadly resolved commitment frames an aggressive objective for sustainable power, while its public variation plan centers around horticulture, water assets, wellbeing and catastrophe risk decrease.
Grant financing for climate ventures in the ideation stage and equity investment in scalable ventures are two components of the NRSP’s proposed implementation, which aims to kick-start the domestic market for innovative climate solutions. The strategy is a viable long-term alternative to the limited local public sector funding that is restricted by high debt.
Up to 100 ideation-stage start-ups will receive grants and expert guidance from a venture accelerator funded by the GCF. As an anchor investor in the $40 million Climaventures Fund, which is managed by “Sarmayacar” and aims to invest in climate ventures that are ready for investment as well as promising ventures from the venture accelerator, it will also make a first-loss equity commitment of $15 million.
