Pakistan is gearing up to launch a Rs1 billion Climate Change Fund aimed at tackling the country’s mounting environmental challenges and supporting projects that promote climate adaptation, mitigation, and sustainability.
According to official documents obtained by Wealth Pakistan, the Ministry of Climate Change has requested Rs1 billion in seed money to kickstart the initiative. The fund, created under Section 12 of the Pakistan Climate Change Act, 2017, will serve as the country’s main financial mechanism to drive climate resilience and fulfill both local and international commitments, including those under the Paris Agreement.
Officials said the proposal has already been sent to the Finance Division for approval, while the Draft Climate Fund Rules — which outline the fund’s structure and governance — are awaiting the ministry’s final nod.
Once operational, the Pakistan Climate Change Authority will manage the fund through three key bodies:
- Fund Management Committee — responsible for overall decision-making.
- Fund Technical Committee — tasked with project evaluation and monitoring.
- Fund Investment Committee — guiding financial and investment strategies.
The fund will be powered by multiple sources, including government allocations, donations, endowments, investment returns, and revenues from carbon and other environmental projects. The ministry expects that once the fund is launched, it will attract backing from international development partners and private investors eager to support green initiatives.
Under the proposed disbursement plan:
- 40% will go toward climate adaptation projects,
- 30% for mitigation efforts,
- 20% for research, capacity building, and communication,
- and up to 10% for administrative costs.
To make the fund accessible, a tiered grant system will be introduced:
- Small grants (up to Rs5 million) for community and NGO projects.
- Medium grants (Rs5–50 million) for scalable public and private initiatives.
- Large grants (over Rs50 million) for big, multi-sector projects with long-term impact.
A co-financing model will also allow private sector participation at a 1:2 ratio — meaning every rupee invested by private players could unlock two rupees from the fund — to encourage investment in green ventures.
Officials believe that once launched, the Pakistan Climate Change Fund will become a cornerstone of the country’s sustainability and economic resilience strategy, channeling much-needed resources into projects that directly confront the growing risks of climate change.
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