The CC Facility is currently accepting concept notes to help early-stage and market-ready structures become investable solutions, helping to grow the climate finance ecosystem.
It seeks to contribute to building a market that will unlock the most innovative structures that can be standardized, replicated, and scaled. The support for climate solutions through a strategic and bundled package of grant funding and customized technical assistance to address the key barriers preventing development and mobilization of private capital, as well as additional benefits holistically provided throughout the program.
The Catalytic Climate Finance Facility (CC Facility) is focused on scaling sustainable climate finance by providing market acceleration services to early-stage and market-ready blended financial vehicles in under-financed sectors in developing countries. It is a partnership between Convergence and Climate Policy Initiative to bring a holistic solution in a fragmented market to accelerate the implementation of high-impact blended finance vehicles catalyzing private capital to close the climate financing gap.
It targets support to address key obstacles in the development process of such financial vehicles occurring in the acceleration stages, t. Together, Convergence and CPI will offer a full suite of tools to help new blended finance vehicles and scale these solutions faster, navigate potential pitfalls, and maximize their impact as a climate financier.
- The open call for proposals will have a special focus on solutions targeting sustainable agriculture and adaptation in Sub-Saharan Africa and South Asia.
- Up to 500,000 U.S. dollars over 12 to 18 months to test, structure, launch, and expand solutions. Funding will be conditional, subject to achieving predetermined milestones and associated deliverables. Grant funding exclusively for the design and launch of the solution and grant amounts will be dependent on the resource needs for the solutions stage of development. These stages include: feasibility, planning, proof-of-concept and expansion.
- Acceleration Support
- Customized technical assistance over 12 to 18 months to build capabilities that would accelerate the market roll-out of blended climate finance solutions. It includes a comprehensive offering of technical assistance services focused on strategy, fundraising, and operations. Support will proactively address key barriers, lowering the risk of investments.
- The CC Facility provides funding for blended finance vehicles targeting climate change issues in developing countries. Applications will be assessed based on a set of qualifying characteristics and key evaluation criteria.
- Qualifying Characteristics:
- Investment theme: solutions addressing climate adaptation and/or mitigation.
- Sectors: broad range of sectors.
- 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: early-stage solutions that are going through an early adoption stage in their development process. This includes financial vehicles that have already tested the idea through either proof of concept, proven pilots, or a minimum viable product, and are ready for expansion.
- Team & local capacity: proven track record and experience in targeted sector and geography, capacity and willingness to engage with the program, and on-the-ground presence
- Entity type: organizations or consortium of organizations, including advisory firms, foundations, not-for-profit, fund managers, and private enterprises. The lead organization must be able to provide proof of incorporation and financial statements for the previous fiscal year.
Key Evaluation Criteria
- Additionality: addresses climate finance barriers or a market failure in a new or more efficient way than existing solutions. Shows higher degree of additionality through the impact delivered.
- Catalytic potential: demonstrates ability to achieve socioeconomic and environmental impacts, prioritizing enhancement of local capacity through knowledge and technology transfer. Shows scalability and replicability potential and a nuanced understanding of the local context(s).
- Financial sustainability: demonstrates likelihood of achieving financial close, including team’s ability to implement the solution and having a strategic plan for market viability.
- Gender equality: show responsiveness to relevant gender risks and opportunities. Intentionally integrates gender considerations across operations and anticipates positive outcomes for gender equality.
- Mobilization: shows potential to mobilize private capital and to attract participation from new segments of investors. Shows that vehicle is bankable/investable.
For more information, visit Catalytic Climate Finance Facility.