NRSP Unveils USD 50 Million Climaventures Programme for Climate Startups

Islamabad-(Mudassar Iqbal): – October 22, 2024– The National Rural Support Programme (NRSP) has proudly launched its Climaventures Programme, which has a funding allocation of USD 50 million.

The NRSP expressed gratitude to the Government of Pakistan and the Ministry of Climate Change and Environmental Coordination for their steadfast support. The Green Climate Fund (GCF) has pledged USD 25 million to the Climaventures initiative, as announced during its 40th Board Meeting in Korea on October 22, 2024. Henry Gonzalez, Chief Investment Officer of the GCF, remarked, “We are excited to back Climaventures, an innovative initiative that aims to create homegrown climate solutions by utilizing Pakistan’s expanding start-up ecosystem. The program seeks to show that local climate needs can be addressed cost-effectively, with a strong market demand for climate-related products and services, while also providing investors with financial returns linked to climate impacts.”

Climaventures is set to revolutionize Pakistan’s climate start-up landscape and expedite the nation’s shift towards a low-carbon, climate-resilient economy. Mr. Nauman Bashir Bhatti, a Pakistani Board Member of the GCF, congratulated NRSP on the project’s approval, highlighting that while this marks Pakistan’s ninth project to receive GCF funding, it is the first equity project conceived and designed within the country’s direct access entity, aimed at engaging the domestic private sector in climate initiatives.

A key feature of the initiative is the Venture Accelerator, which has a budget of USD 10 million. This component will offer both financial and technical support to early-stage climate-focused businesses, assisting them in developing and scaling their climate solutions. Additionally, the Climaventures Fund, a pioneering USD 40 million equity fund supported by a USD 15 million first-loss cover from the GCF, will provide essential financial and strategic backing to early-stage climate ventures in Pakistan, promoting the development of scalable climate solutions nationwide. Sarmayacar, the first financial institution to bring venture capital to Pakistan, will manage the fund.

The combined efforts of these two components aim to bridge a crucial funding gap for climate technology start-ups by providing technical assistance and direct venture investment to businesses addressing climate change, with the goal of reducing 3.5 million tons of CO2 equivalent emissions and benefiting nearly 6 million individuals in Pakistan’s climate-vulnerable populations.

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