Applications open for Gender-Responsive Climate Finance Window (Cycle 5)

Deadline: 30-Aug-24

Convergence is offering a unique market acceleration opportunity for practitioners to secure design funding to develop and launch catalytic blended finance vehicles that aim to attract private capital to sustainable development at scale.

The Gender-Responsive Climate Finance Window, made possible with support from the Government of Canada, will award early-stage grant funding for the design and launch of innovative blended finance vehicles focused on the intersection of climate change and gender equality in emerging markets globally.

There has been a growing awareness of the climate-gender nexus over the past decade, but the field remains nascent. This Window aims to build the field by supporting a pipeline of climate-gender blended finance vehicles to reach bankability. Blended finance vehicles supported by the Window will be anchored by three key objectives:

• The mobilization of private sector capital at scale to finance gender-responsive climate change mitigation and/or adaptation in emerging markets;
• The integration of gender equality into the design, implementation, and operations of vehicles, rather than as a “bolt-on feature” or “nice-to-have”;
• Strong alignment with Sustainable Development Goal (SDG) 5 (Gender Equality), SDG 13 (Climate Action), and SDG 17 (Partnerships for the Goals) at the minimum.

Types of Funding Available

• Applicants can apply for feasibility study or proof-of-concept funding.
  • Feasibility study
    • Grants range between USD 40,000 to USD 190,000.
    • Funding to explore the feasibility of the vehicle. For example, a combination of the following activities would be eligible:
      • Assessing the investability/bankability of the transaction
      • Conducting market scoping
      • Conducting a gender analysis and stakeholder consultations
      • Designing the vehicle structure
    • Promising feasibility studies funded through this window may be considered for follow-on proof-of-concept funding.
    • Feasibility study applications must be able to 1) present an initial vehicle structure and investment thesis, and 2) demonstrate early engagement with potential investors and relevant stakeholders.
  • Proof-of-concept
    • Grants range between USD 190,000 to USD 500,000.
    • If a feasibility study (or equivalent) has been completed, then funding would be provided to complete all design and structuring activities to launch the vehicle. For example, a combination of the following activities would be eligible:
      • Finalizing the capital structure and financial model
      • Fundraising and marketing activities with prospective investors
      • Final selection of implementing partners
      • Finalizing the legal structure and producing key documents needed to launch the vehicle
      • Development of a gender action plan (or equivalent) based on the gender analysis from prior feasibility work
    • Proof-of-concept applications will be expected to present 1) interest and ideally commitment from investors and relevant stakeholders to participate in the vehicle, and 2) a financial model.

What solutions are eligible under this window?

• Solutions must mobilize private capital at scale to finance either climate change mitigation and/or adaptation in emerging markets, and integrate a strong gender equality focus.
• For instance, solutions could target sectors where climate and gender blended finance transactions have been increasingly emerging:
  • Climate change mitigation
    • Low-carbon transportation
    • Renewable energy generation (on-grid and off-grid)
    • Energy efficiency
    • Agriculture, forestry, and land use
    • Clean cooking technologies
    • Natural resource management
    • Energy transmission, storage, and distribution
  • Climate change adaptation
    • Climate smart agriculture or aquaculture
    • Climate-related insurance and disaster resilience
    • Nature-based infrastructure
    • Ecosystem-based adaptation
    • Waste and wastewater management

Eligibility Criteria

• To be eligible for consideration, proposals must meet the following criteria:
  • Theme
    • The proposal must be for the design and launch of a blended finance vehicle.
    • See their grant portfolio for examples of vehicles supported by Convergence under past Design Funding windows.
    • Vehicles must target either climate change mitigation and/or adaptation, and integrate a strong gender equality focus.
  • Geography
    • Any emerging market(s), eligible to receive official development assistance (ODA) according to the OECD-DAC List of ODA Recipients.
  • Proposals are only accepted from organizations or consortiums of organizations.
    • For example, eligible organizations could include asset owners, asset managers, advisory firms, foundations, not-for-profit organizations, and corporations.
    • The lead organization must be able to provide 1) proof of incorporation, and 2) financial statements for the previous fiscal year.
  • Applicants are awarded funding in disbursements based on milestones, and are expected to meet reporting requirements, such as reporting on key challenges, learnings, and results on a regular basis. Learnings from the design stage will be synthesized into a public case study or learning brief and published to support market-wide learning.

For more information, visit Convergence.