Cleantech is having a moment in Pakistan’s startup scene. From energy initiatives to sustainable agriculture solutions, innovative ventures are sprouting up across the country at an unprecedented rate. But what’s driving this green revolution in the entrepreneurial landscape?

Recent months have seen a flurry of activity in the sector. The Climate Finance Accelerator (CFA) conducted an investment roadshow, while USAID’s Private Financing Advisory Network (PFAN) also showcased its cohort of cleantech SMEs to potential investors. Meanwhile, the likes of Accelerate Prosperity are ramping up support for eco-friendly startups, particularly in Pakistan’s underserved regions.

This surge isn’t limited to funding opportunities. Incubators and accelerators are increasingly focusing on climate-related innovations. The National Incubation Center (NIC) Faisalabad now brands itself as an agritech incubator, Innovate 47 has launched a dedicated climate accelerator, and New Energy Nexus recently announced its partnership to support clean energy ventures in Pakistan.

The urgency behind this trend is clear – Pakistan is grappling with the intense fallout of climate change, as evidenced by the recent devastating monsoon rains. But beyond the ‘why,’ this article aims to explore the burgeoning landscape of cleantech startups in Pakistan.

What unique challenges do these ventures face? And more importantly, how can they overcome these hurdles to create lasting impact?

So are these ventures investable?

But before answering this question, let’s get two things out of the way. First, while ‘climate tech’ is the globally preferred term for such initiatives, ‘cleantech’ remains more commonly used in Pakistan. For consistency, we’ll use ‘cleantech’ throughout this article.

And the segments included within this definition are carbon tech, industry, sustainable foods, low-carbon mobility, dispatchable energy sources, clean fuels, built environment, land use, intermittent renewable energy sources, grid infrastructure and agritech.

Now let’s take a look at what’s been happening in the global funding scene. It’s been a rough couple of years for investors in cleantech, to say the least. Geopolitical chaos, valuations taking a nosedive, inflation creeping up, and interest rates climbing. It........

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