UK announces first projects for Pakistan’s climate finance accelerator initiative


ISLAMABAD, NOV 2 /DNA/ – The UK has announced that seven innovative low-carbon projects from across Pakistan will be part of the first cohort of projects for the Climate Finance Accelerator (CFA), Pakistan.  The chosen projects, selected from over 50 applications, are from the energy, transportation, AFOLU (agriculture, forestry and other land uses), waste, e-mobility, and industrial and manufacturing sectors.

The projects will receive tailored support ahead of an event in February 2023. The support includes individual needs assessment discussions and analysis of each of the projects from a financial, technical and gender equality and social inclusion perspective, to ensure they are in the best position to attract investment. These projects have the potential to benefit communities across Pakistan through pollution abatement, employment opportunities, access to energy, effective waste management, e-mobility and by supporting gender equality and social inclusion efforts.

The CFA is part of the UK Government’s efforts to help Pakistan in accessing climate finance and meeting the priorities set out in its Nationally Determined Contribution under the Paris Agreement. This work comes alongside the provision of UK humanitarian support to Pakistan following the devastating floods that have killed over a thousand people and affected more than 33 million. During his visit to Pakistan last month, FCDO Minister Lord (Tariq) Ahmad of Wimbledon announced a further £10 million of humanitarian aid, bringing the UK Government’s total contribution to £26.5 million. This uplift in funding comes after the British public raised over £30m in donations via a Disaster Emergency Committee appeal and the UK’s Ministry of Defence gifted in-kind life saving equipment.

British High Commission Develoment Director, Jo Moir, said:

“Businesses are playing a vital role in tackling the climate emergency in Pakistan, as we have seen in the response to the devastating floods. The UK is committed to assisting innovative and exciting low-carbon projects joining CFA Pakistan and building Pakistan’s climate resilience. We are ek saath against climate change.”

Khurram Lalani, Team Leader from DAI said: “Today, we are delighted to launch the first cohort of the Climate Finance Accelerator, which aims to catalyse private finance and investments in projects that are vital to Pakistan’s green economy success; in renewable energy, electric transport, and sustainable housing. I am sure the support provided through CFA will enable these projects to make scalable and groundbreaking products for our collective greener future.”

The CFA projects are:

ACT Engineering Services: ACT Engineering (ACTES) provides standardised solar solutions for residential and commercial clients. The company has already installed 6 MW of distributed solar all over Pakistan, and aims to implement further 20 MW industrial and commercial solar projects through CFA support in a bid to scale up solar energy solutions in Pakistan.

Digital Dera by Agriculture Republic: Digital Dera is Pakistan’s first climate smart village community network that aims to connect all remote rural villages and communities across Pakistan to the internet. It will also equip smallholder farmers with climate smart digital agriculture free-of-charge.

Concept Loop: This project aims to redirect plastic waste from oceans and landfills into sustainable and affordable building materials and lifestyle products. The business will source/recover waste plastic and process it into bricks, partition boards, decorative sheets and value-added furniture items.

Daewoo: As the market leader in the transport sector of Pakistan, Daewoo Pakistan Express Bus Service Limited intends to launch electric 2-3 wheelers and electric buses in Pakistan. The e-mobility initiative will help the Government of Pakistan meet its target of 30% electric vehicles in the total vehicle mix of the country by 2030, set in the NDC.

DISIDE: The simplification of road freight emission reporting across the supply chain through a digital logistics platform. This makes road freight emission transparent and allows businesses to be accountable for every single ton-kilometer driven by their trucks.

·       Ouroboros Waste Management: The Used Polyethylene Terephthalate (PET) Bottle project aligns with circularity and neutrality targets –servicing the high-end market. The commercial opportunity at hand is of 25,000 MT Used PET converted to polyester yarn or Food Grade Recycled PET whilst tying in the neglected informal sector into the process and training women in semi-urban areas.

Shams Power Limited: Shams Power has pioneered the concept of distributed solar power generation to industry and commerce using a solar pay-as-you-go model. This project will implement 150 MW of distributive solar energy plants at multiple commercial and industrial sites in Pakistan. These greenfield solar projects will help industrial and commercial enterprises to transition to solar energy through affordable financing instruments of 150 MW of Distributed Solar Plants on multiple sites in Pakistan.