ISLAMABAD: The Green Climate Fund (GCF) has approved a project of Pakistan in the amount of $50 million that will focus on developing local homegrown climate solutions by harnessing the country`s dynamic and growing startup ecosystem.

In Pakistan, GCF is working with the National Rural Support Programme (NRSP), to support local homegrown climate solutions by harnessing Pakistan`s dynamic and growing start-up ecosystem.

GCF will fund a venture accelerator and will also make a first-loss equity commitment as an anchor investor into the Climaventures Fund.

This was one of the 16 projects approved by the GCF executive board at its meetingin Songdo, Incheon, South Korea.

The GCF board feels that 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.

The projected to be implemented by NRSP 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.

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