ISLAMABAD: Acumen Pakistan announced the approval of anchor funding from the Green Climate Fund (GCF) for Pakistan’s first investment fund targeting climate adaptation in the agriculture sector, with a focus on impacting the lives of vulnerable farmers, stated a press release.
“The initiative is designed as an innovative blended finance facility, with $80 million of equity funding for early and growth stage local agribusinesses,” it said.
“An additional $10 million will be deployed in grant funding to provide targeted support to improve the business models of investee companies and build overall climate resilience of the ecosystem in Pakistan.”
The statement added that Pakistan continues to rank among the most climate-vulnerable countries in the world. The agriculture sector is the most affected and grapples with issues of productivity, efficiency, and inability to respond to climate shocks. Agribusinesses are largely unable to secure financing to develop adequate solutions, and smallholder farmers remain extremely susceptible to climate disasters.
“Acumen’s groundbreaking new initiative aims to provide catalytic funding for the agriculture sector, increasing local capacity and build the climate resilience of millions of smallholder farmers while attracting private capital towards national climate adaptation priorities,” the press release added.
“We believe this first-of-its-kind climate fund will serve as a paradigm-shifting model for Pakistan,” Dr Ayesha Khan, Regional Director for Acumen in Pakistan who led the development of the initiative and will serve as its Managing Director, was quoted as saying.
“By channeling investments into innovative agribusinesses, we will not only unlock financing for a critical sector, but also empower those who bear the brunt of climate catastrophes.”
The Green Climate Fund is the world’s largest dedicated climate fund and the main multilateral financing mechanism for developing countries like Pakistan in responding to climate change.
Acumen said the invaluable support by Green Climate Fund has been instrumental in realising this ambitious vision for Pakistan.
“Acumen is also deeply grateful for strong support for this project from multiple private and public sector stakeholders, particularly the Ministry of Climate Change, as well as Acumen partners and board members. Acumen Pakistan remains dedicated to its goal of solving problems of poverty and building a world based on dignity as we work towards a more resilient future for all.”