Pakistan is highly vulnerable to the impacts of climate change, particularly droughts and floods. The country’s Nationally Determined Contribution outlines an ambitious target for renewable energy, while its National Adaptation Plan focuses on agriculture, water resources, health and disaster risk reduction.

As the first GCF-funded project from the National Rural Support Programme (NRSP), it focuses on developing local homegrown climate solutions by harnessing Pakistan’s dynamic and growing start-up ecosystem. It aims to kick-start the domestic market for innovative climate solutions, comprising grant financing for ideation-stage climate ventures and equity investment in scalable ventures. The approach represents a viable long-term alternative to local public sector funding, which is constrained by high indebtedness. 

GCF will fund a venture accelerator to offer grants and expert guidance to up to 100 start-ups at the ideation stage. GCF will also make a USD 15 million first-loss equity commitment as an anchor investor into the USD 40 million Climaventures Fund, which targets investment in ready-for-investment climate ventures and promising ventures from the venture accelerator.