Deadline: 1-Jun-23
Danida Green Business Partnerships (DGBP) is open for project applications that combine a good business case with a positive impact on climate change, the environment, economic growth and people’s livelihoods.
Danida Green Business Partnerships (DGBP) supports partnerships in developing countries aimed at creating new market-based solutions for climate and environmental challenges while contributing to economic growth, job creation and improved livelihoods. The programme is funded under the Danish development cooperation (Danida) and administered by an external secretariat.
The Programme will fund partnerships between commercial and noncommercial partners based on an innovative business case with an impact in developing countries and in coherence with Danish strategic priorities in the partner countries. Each partnership should contribute to green transition and inclusive growth. The success of the partnerships is dependent on both commercial and non-commercial partners. Good partnerships involve a joint understanding of both commercial and development aims. By engaging private sector finance and competencies in combination with knowledge about development challenges of noncommercial partners, the programme aims to contribute to the Sustainable Development Goals, and in particular climate change, environmental and biodiversity degradation, and inclusive growth.
DGBP funding is available for activities of non-commercial partners in the partnership and for specifically defined activities of the commercial partners, including feasibility studies, training and certain expenses for testing new equipment. The DGBP grant can constitute maximum 75% of the total project budget.
Objectives
- The project objective should be aligned with the overall objective of the DGBP:
- An Enhanced Green Transition through Private-led Sustainable and Inclusive Economic Growth and Improved Livelihoods.
- The project must contribute to climate change mitigation, climate change adaptation, environmental protection, biodiversity and/or desertification. At least 60% of the projects funded under DGBP should have this as their principal objective.
- Second, the project must contribute to inclusive economic growth and improved livelihoods of the target group(s).
Funding Information
- Full partnership projects can apply for funding within a budget of DKK 4-15 million and with a duration of three to five years.
- Maturation projects: If the partners are not yet ready to engage in a full partnership project, it is possible to apply for a maturation grant of DKK 0,8 to 1.5 million with a project duration of up to 18 months. The purpose of the maturation project is to achieve more information and certainty of essential aspects of the business model or the technological solution.
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Applicants may apply for funding to cover their project preparation phase (project preparation phase) cost in the period after approval of the concept note of up to DKK 500,000 for full projects and DKK 100,000 for maturation projects.
Expected Outcomes
- Outcome 1: Reduced vulnerability to climate change, reduced strain on natural resources and the environment and a stabilisation of GHG emissions
- Outcome indicator 1.1: Number of vulnerable persons/households who have increased their resilience to climate change as an effect of the partnership project
- Outcome indicator 1.2: Avoided GHG emissions (estimated tCO2-equivalents)
- Outcome indicator 1.3: Efficiency of the use of water, energy, materials and/or other natural resources (percentage efficiency gains)
- Outcome indicator 1.4: Area under sustainable land management (ha)
- Outcome indicator 1.5: Reductions in the amounts of polluting substances released to soil, water bodies and/or air (percentage reductions)
- Outcome 2: Inclusive private sector growth and improved livelihoods
- Outcome indicator 2.1: Number of decent jobs created with commercial partners (total/female/youth)
- Outcome indicator 2.2: Number of people with opportunities for increased income and/or improved livelihoods (total/female/youth)
- Outcome indicator 2.3: Viable business cases developed and sustained at the end of the project period
- Outcome indicator 2.4: Percentage of partner companies with responsible business conduct
- Outcome indicator 2.5: Amount of private investments mobilised in partnership projects (DKK)
Eligible Countries
- Afghanistan, Bangladesh, Brazil, Burkina Faso, Colombia, Egypt, Ethiopia, Georgia, Ghana, India, Indonesia, Jordan, Kenya, Lebanon, Mali, Mexico, Morocco, Myanmar, Niger, Nigeria, Pakistan, Palestine, Philippines, Rwanda, Somalia, South Africa, Tanzania, Tunisia, Turkey, Uganda, Ukraine, Vietnam.
Eligibility Criteria
- The partnership contains one administrative partner
- The administrative partner is a non-commercial entity.
- The administrative partner must document proven project management experience, a solid presence in the partner country (e.g. own established office or long-standing partnership with local partner organisation(s)), experience with SDGs and development projects, and experience with key beneficiary groups in the country.
- Multilateral organisations (e.g. UN agencies and CGIAR organisations) and public institutions (e.g. ministries, agencies, universities/university colleges) are not eligible as administrative partners.
- The partnership contains at least one for profit international commercial partner
- An international commercial partner must have sufficient capacity to take active part in the partnership and in the project implementation (beyond import/export, equity investments and loans) either as the key commercial partner or as other commercial partner. DGBP defines an international commercial partner as follows. Please note that one of the four below criteria must be fulfilled:
- International companies registered in a non-ODA country1 are expected to engage actively in proposed project activities in the partner country.
- A subsidiary of an international and well-reputed company A locally registered subsidiary of an international/ multinational company registered in a non-ODA country. However, it will be explored to which extent HQ should be involved, before the final decision is made on the application.
- Large companies with international ownership structure A large company registered in the targeted country with an ownership structure attributing at least 51 percent or more of the ownership to international well-reputed companies that are registered and operating in a non-ODA country.
- A locally registered company which an active investment and engagement at Board level from a European development finance institution (DFI)
- An international commercial partner must have sufficient capacity to take active part in the partnership and in the project implementation (beyond import/export, equity investments and loans) either as the key commercial partner or as other commercial partner. DGBP defines an international commercial partner as follows. Please note that one of the four below criteria must be fulfilled:
- All partners are registered legal bodies
- The commercial partners are legally and financially independent from the non-commercial partners
- Project country is eligible
- All sections of the DGBP concept note are duly filled out in English
- Annual audited reports for the most recent financial year of the administrative partner as well as the key commercial partner are attached
- 1-3 relevant project references of the administrative partner are attached
- The application is dated and signed by all partners in the consortium
For more information, visit Ministry of Foreign Affairs of Denmark.