Karachi: The Green Climate Fund (GCF) said on Wednesday that it has allocated $15 million to Pakistani venture capital firm Sarmayacar, so that it can help startups address the impact of climate change in the country that has been at the forefront of extreme weather.
Floods in Pakistan, which scientists said were worsened by global warming, affected at least 33 million people and killed more than 1,700 from the start of the monsoon season in mid-June 2022 until mid-November that year.
At the same time, the difficult economic and political situation facing the country means there is a lack of funds to address the problem.
In particular, venture capital funding fell to $16 million during the first nine months of 2024, down 57% year-on-year from the $37 million recorded in the same period of the previous year, according to data compiled by Data Darbar.
Created more than a decade ago, the Green Climate Fund is part of the United Nations’ efforts to help the world’s poorest countries adapt to climate change.
The distribution of $15 million depends on Sarmayakar raising an additional $10 million, said Rabil Warraich, CEO and founder, adding that he expects the fund to be able to begin financing procedures by the first quarter of next year.
He said Green Climate Fund financing would have a “key role” in the new fund set up by Sarmayakar, which he said could reach a maximum of $40 million.
Waraich said his capital is allocated to startups in areas including energy, electric mobility, water treatment, recycling, sustainable agriculture and carbon accounting, and he is studying startups to invest in.
The fund’s website said it had allocated a total of $282.7 million to Pakistan across 10 projects.
The Green Fund was not immediately available to comment on the latest pledge.
The IMF, which last month approved a bailout for Pakistan, has also agreed to hold talks with the country on financing under the Fund’s Resilience and Sustainability Fund (RST) to generate financing for climate change-related projects.