ISLAMABAD: Pakistan has launched an initiative to drive climate innovation and mobilise private investment with the unveiling of Climaventures, a $50 million climate venture fund and accelerator.

A statement issued here on Saturday said that the National Rural Support Programme (NRSP) inaugurated the project in Islamabad, bringing together government officials, development finance leaders, climate change stakeholders, and local investors.

The event marked an important step forward in Pakistan’s climate strategy, aimed at fostering homegrown solutions to pressing environmental challenges. Designed to support climate-focused startups and ventures, Climaventures was set to catalyse sustainable development in the country’s climate sector, which had long been under-resourced and under-financed.

Participants included representatives from government and officials from the Foreign, Commonwealth and Development Office (FCDO), Asian Development Bank (ADB), International Finance Corporation (IFC), and the World Bank.

Their presence underscored the broad coalition supporting Climaventures in its mission to tackle Pakistan’s climate needs, the statement said.

With half of the fund’s budget, $25 million, provided by the Green Climate Fund (GCF), the initiative will leverage the country’s venture ecosystem to mobilise additional private investment.

Through grants, equity investments, and technical support, Climaventures will empower climate startups to scale their impact and strengthen Pakistan’s resilience to climate threats.

Welcoming participants, NRSP CEO Dr Rashid Bajwa emphasised that Climaventures was specifically designed to address the high failure risk inherent in early-stage ventures.

By focusing on both financial and technical support, the programme aimed to increase the likelihood of success for startups, which was critical for building Pakistan’s climate-solutions ecosystem.

The initiative had also received backing from Pakistan’s Ministry of Climate Change and Environment Coordination (MoCC&EC), reflecting a strong public-private collaboration.

NRSP’s efforts in climate finance had proven instrumental in mobilising resources to advance Pakistan’s climate adaptation and resilience objectives.

Climaventures was structured to bridge the funding gap in climate solutions by offering first-loss equity, de-risking private investments, and ensuring long-term support for innovative projects.

In a video address, Federal Minister for Planning, Development, and Special Initiatives Ahsan Iqbal expressed optimism, calling Climaventures “a groundbreaking initiative” that would drive strategic climate investments and foster innovation. Similarly, Jo Moir, Development Director at the British High Commission, highlighted the importance of private sector involvement in climate finance for developing nations, acknowledging the programme’s potential to mobilise the necessary resources.

Published in Dawn, November 10th, 2024