Deadline: 24-Apr-24
Applications are now open for the Catalytic Climate Finance Facility (CC Facility) initiative that accelerates the launch and scale-up of high-impact, market-ready blended climate finance structures in developing economies.
Through grant funding, acceleration support, and a market-building learning hub, the CC Facility aims to be an ecosystem builder, address a market need for scaling blended finance structures for climate change, and increase the available pipeline of bankable blended climate finance transactions with an emphasis on gender responsiveness and local capacity.
The initiative is a partnership between Convergence and Climate Policy to bring a holistic solution in a fragmented market to catalyze private capital towards closing the climate financing gap.
Together, Convergence and CPI offer a suite of tools and support to help innovative blended finance structures in the acceleration stage scale faster, navigate potential pitfalls, and maximize their climate finance impact.
Which sectors and/or themes will be prioritized?
- Eligible structures are blended finance vehicles that target climate change mitigation and/or adaptation in a wide range of sectors. The focus will be on sectors that are severely under-financed globally relative to the impact they can deliver. Examples include, but are not limited to, sustainable energy, encompassing just transition, universal access, and energy efficiency; sustainable cities and resilient infrastructure; sustainable agriculture and land use; and thematic areas such as nature-based solutions and gender equality.
- The program will have a global focus, but will also have a dedicated thematic stream focused on sustainable agriculture and climate adaptation in Sub-Saharan Africa and South Asia.
Funding Information
- The CC Facility offers grant funding of up to USD 500,000, customized acceleration support and knowledge-sharing through a learning hub.
- Selected blended finance structures will receive grant funding and acceleration support for up to 18 months. The pace will vary by grantee depending on their needs and envisioned launch timeline.
Benefits
- Grant Funding
- Funding to accelerate the launch and scale-up of blended finance structures for climate action
- Through bundled grant funding and customized acceleration support, the CC Facility enables climate finance structures to address barriers preventing private capital mobilization, as well as provides implementation monitoring and valuable networks to grantees throughout the grant period. Grant funding is performance-driven and based on achieving predetermined milestones and deliverables.
- Funding to accelerate the launch and scale-up of blended finance structures for climate action
- Acceleration Support
- Customized technical assistance for 12-18 months to build capabilities to accelerate the market roll-out of blended climate finance structures
- A comprehensive offering of services focused on strategy, fundraising, and operations to advance implementation of climate finance structures. Support will proactively address key barriers to attracting private capital.
- Customized technical assistance for 12-18 months to build capabilities to accelerate the market roll-out of blended climate finance structures
- Learning Hub
- Knowledge-sharing resources to help build the field and consolidate the market, creating synergies and increasing efficiencies in the ecosystem
- Drawing on CPI and Convergence’s extensive data collection and research efforts, the Learning Hub will accelerate the implementation of blended finance structures, mobilize private capital, and achieve socioeconomic and environmental impact.
- Knowledge-sharing resources to help build the field and consolidate the market, creating synergies and increasing efficiencies in the ecosystem
Eligibility Criteria
- Investment theme: Structures addressing climate adaptation and/or mitigation
- Sectors: No restriction
- Geography: Developing countries.
- Applicants do not need to be domiciled in a developing country but end beneficiaries and target activities must. Preference will be given to local applicants who demonstrate a nuanced understanding of local contexts and engagement with local stakeholders where relevant.
- Stage: Market-ready structures moving through an initial adoption stage in their development process
- This includes blended finance structures that have already been tested for feasibility, completed proof of concept, pilot(s), or a minimum viable product, and are ready to soon launch and scale.
- Team & local capacity: Proven track record and experience in targeted sector and geography, capacity and willingness to engage with the CC Facility program, and on-the-ground presence. Additionally, structures will be assessed on their ability to demonstrate local capacity development (e.g., knowledge, leadership, and technology transfer) in the target geography.
- Entity type: Organizations or a consortium of organizations, including advisory firms, foundations, not-for-profits, fund managers, and private enterprises.
- Public institutions such as development finance institutions, multilateral development banks, UN and government agencies cannot be the lead applicant or grant recipient.
- The lead organization must be able to provide proof of incorporation and financial statements for the previous fiscal year.
For more information, visit CC Facility.