Call for Proposals: The Luxembourg-Fiji Drua Innovation Small Grants Scheme

Deadline: 29-May-23

The United Nations Development Programme (UNDP) in partnership with the Governments of Fiji and Luxembourg is inviting the private sector, community cooperatives, civil society organizations and individuals to apply for the Drua Innovation Small Grant Scheme which aims to support inclusive and resilient economic development in Fiji.

The ‘Drua Innovation Small Grants Scheme’ seeks to support inclusive and resilient economic development in Fiji through the financing of activities that support the private sector and align with the sustainable financing objectives defined by Fiji’s Climate Change Act and National Climate Change Policy 2018-2030. Activities in scope for support should demonstrate innovative approaches to

scaling up / leveraging private capital for business activities that help to build socio-economic resilience to climate change,
seed funding for the diversification of existing companies or services that have potential to support the enabling environment.

The Luxembourg-Fiji Drua Innovation Small GrantsScheme offers small grants of up to 75,000FJD to support private sector and civil society organisations to contribute directly to the market diversification, resilience building, and the internal business reform required to green their economy and minimise their exposure to climate change risks.

Grants will be provided based on specific performance indicators and the merit of proposals received. This scheme will target proposals that demonstrate strong potential to be scaled up and deliver tangible socio-economic and environmental benefits.

Purpose

This initiative, made possible through funding provided by the Government of Luxembourg and the Fijian Government, is a means to disburse climate financing to non-government actors and challenge them to be part of the solutions, innovation, market transformation, and business unusual needed to build resilience to climate and disaster risks. Through a focus on non-government actors – and the private sector specifically – this grant window targets initiatives that show strong potential to contribute to supporting the livelihoods and transitioning of Fiji’s economy towardsa low carbon, climate resilient, and socially inclusive growth trajectory.
This dynamic grant is expected to be utilized by private sector or civil society actors for a variety of interventions and activities.
While these priority intervention areas and indicators will be central to the assessment of the merit of proposals, this grant scheme will consider a diverse range of financing needs associated with the activities needed to influence and enhance resilience-building objectives. For example, grant proceeds might be used to:
- Enable a company that has performed the same services or product production processes for decades to have access to the additional research and development funding they need to explore ways to diversify and modernize theirbusinessin order to better respond to risks posed by the climate emergency.
- Enable business and not-for-profit entities to hire GIS expertise to help map landscapes and seascapes in their vicinity with a view to assessingand managing climate change risks and opportunities.
- Enable a civil society organisation, in partnership with and leveragingthe technical expertise of a private sector firm, to collaborate with a vulnerable community to improve their water security in response to changing rainfall patterns.
- Help provide the co-financing required to leverage additional private sector investment needed to support the uptake of new technologies that are instrumental in supporting business-level mitigation or adaptation strategies.
- Help provide the co-financing for business activities and technology uptake needed to accelerate actions needed to support and protect the livelihoods, health, safety and security of women and girls.
- Help to fund the research needed to support the development of innovative business diversification plans or provide the startup capital needed to support young entrepreneurs to develop new business ideas.
- Support existing company’s or groupings of companies to capitalise on the opportunities set out by the Climate Change Act, including the provisions that relate to voluntary emissions reporting.
- Support activities that demonstrate potential to prompt a ‘Green recovery’ in response to the ongoing impacts of COVID-19.

Areas of Intervention

Climate change related risks have exacerbated existing socio-economic challenges in Fiji andthese challenges have been further impacted by COVID-19 and ongoing global market volatility. This has created complexity when it comes to navigating short-term financial priorities and balancing them with longer-term investments and goals. As a result, Drua Incubator Innovation Fund through this second call for proposals is seeking to provide opportunities to bridge investment and development-related financing gaps through the provision of small grants.
This round of innovation grantswill seek to help diversify existing business operations or seed fund startup stage initiatives designed to increase compliance with Fiji’s climate change objectives. Organizations, businesses, or partnerships that are seeking to develop a concept, product, business model, or service that demonstrates strong potential to support social, environmental, or economic resilience building in Fiji and that can demonstrate alignment with the Climate Change Actis encouraged to apply.
Two cross-cutting themes should be considered and integrated into proposals that address the intervention areas identified in the next section:
- Addressing gender inequality issues at risk of exacerbation by climate change
  - Proposals must align with the gender equity principles of the Climate Change Act. Proposals that deliver tangible benefits to women’s livelihoods through engagement with women’s collectives, support to women in business, scale up of empowerment and income generation diversification initiatives, and other activities that seek to support involvement of women in private sector-led climate risk management will be prioritized.
- Minimizing and Addressing Loss and Damage
  - Proposals must demonstrate awareness and consideration of current and future climate change impacts and risks and offer solutions that help to support adaptation and resilience-building or that directly address climate change-driven loss and damage that has effected or is effecting a particular business, community, or sector.
While a broad range of intervention areas will be considered, priority will be placed on proposals which consider the thematic areaswhile also targeting one or more of the following target intervention areas:
- Information technology and risk communication
- Business risk management and diversification
- Capacity development and workforce transition
- Water security, coastal protection, and flood risk management
- Environmental protection and biodiversity risk management

Funding Information

Maximum Grant Amount: Up to 75,000 FJD
Seed funding of up to 50,000FJD is available for proposals with strong demonstration of impact potential and early proof of concept.
Funds must be utilized within 8 months of the receipt.

Eligibility Criteria

Track 1: Grant funding up to $75,000 FJD
- Must be a locally owned business, non-government organization, or registered community-based organization.
- Minimum of 2-year operating history.
- Minimum age of the applicant must be 18 years old (Fiji citizens only).
- Women in business are encouraged to apply.
- Companies that apply must be prepared to demonstrate their compliance with relevant business operational and tax-related requirements.
Track 2: Seed funding up to $50,000 FJD
- Un-registered businesses or individuals can apply for seed funding under track 2.
- Must provide significant rationale to demonstrate the way in which the grant will seed fund the establishment and formalization of a proven business concept or initiative. The proposal should have high impact potential and strong alignment with the key criteria required and described.
- Minimum age of the applicant must be 18 years old (Fiji citizens only).
- The application must include two (2) character references for the individual or individual(s) involved.
- If the proposed business or initiative focuses on supporting a key demographic, existing business type, or specific stakeholder group a letter of support should be secured from the key stakeholder(s).