The UK Climate Finance Accelerator Pakistan (CFA) has opened its doors to applications from low-carbon projects dedicated to combating climate change.
This initiative, funded by the UK Government, offers personalized support to eligible projects, focusing on financial optimization, gender equality, and social inclusion to enhance their attractiveness to potential investors and secure funding.
CFA Pakistan is seeking projects at least in the pre-feasibility stage and requiring a minimum investment of US$4 million. Interested parties are encouraged to submit their proposals by May 31, 2024, through an online application available on the CFA Pakistan – Climate Finance Accelerator page. Support provided to selected projects includes refining financial models, guidance on investor pitches, and strategies to integrate gender equality and social inclusion (GESI) within their operations.
Pakistan’s potential as a hub for innovative climate solutions
British High Commissioner, Jane Marriott CMG OBE, emphasized Pakistan’s potential as a hub for innovative climate solutions.
“Pakistan is home to world-class innovators finding creative solutions to tackle climate change. But, we know that access to finance and compliance with regulation can be a barrier to getting projects off the ground,” she said. Jane Marriott underscored the significance of the UK Climate Finance Accelerator in empowering low-carbon innovators through specialized expertise, which is crucial for their long-term business success.
CFA empowers diverse climate initiatives in Pakistan
CFA Pakistan has offered support to Daewoo, National Foods, Shams Power, and PACT Capital for initiatives ranging from electric transportation to sustainable farming and renewable energy implementation.
CFA Pakistan has completed two cohorts, aiding:
- Daewoo, hoping to add 200 electric buses and 15,000 e-rickshaws to their fleet
- National Foods in establishing sustainable greenhouse tomato farming locally to reduce import costs
- Shams Power in implementing 150MW solar energy plants across multiple Pakistani sites
- PACT Capital in expanding forest cover over 10,000 hectares of land.
What is CFA?
The Climate Finance Accelerator (CFA) is a £12 million technical assistance program funded by the UK Government’s Department for Energy Security and Net Zero that aims to make low-carbon projects more appealing to investors. The UK government has announced up to £40 million to extend the CFA program from late 2024 until 2029. This extension aims to support up to 800 low-carbon projects across Asia, Latin America, and Africa.
The program addresses challenges in attracting climate finance, and supporting countries in meeting their Nationally Determined Contribution (NDC) pledges under Paris Agreement commitments.
CFA has helped fifteen low-carbon projects that were aiming to raise at least $75 million. Operating in Colombia, Egypt, Mexico, Nigeria, Pakistan, Peru, South Africa, Turkiye, Uganda and Vietnam, the CFA provides capacity building in low-carbon technology and finance blending, with a focus on gender equality and social inclusion.