Gender-Responsive Climate Finance Window

Deadline: 15-Nov-23

Interested applicants can now submit concept notes for the fall round (cycle 4) of the Gender-Responsive Climate Finance Window.

Scope of the Window

• 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:
    • present an initial vehicle structure and investment thesis, and
    • 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:
    • interest and ideally commitment from investors and relevant stakeholders to participate in the vehicle, and
    • 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.
  • 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:
    • proof of incorporation, and
    • 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.

Evaluation Criteria

Proposals will be evaluated on the following criteria:

• Scalability and/or replicability
  • How much private capital does the vehicle aim to catalyze?
  • If the vehicle is successful, can other practitioners use a similar approach? Will the vehicle contribute to creating a pipeline of investable gender-responsive climate finance solutions in emerging markets?
• Demonstration effect
  • Is the vehicle testing a never-before-tested design?
  • Is the vehicle replicating an existing approach in a new market?
  • Has the need for using blended finance been demonstrated?
  • Is the vehicle attracting partners such as institutional investors that have not participated in the blended finance space or invested in the climate-gender nexus before?
• Climate change
  • How will climate mitigation or adaptation be incorporated into the vehicle’s design and operations?
  • What will be the climate impact of the vehicle?
  • What climate-related indicators will be used to measure progress and outcomes?
• Gender equality
  • How will gender equality be incorporated into the vehicle’s design and operations?
  • What will be the gender impact of the vehicle?
  • What gender-related indicators will be used to measure progress and outcomes?
• Other development impact
  • What other environmental, social, governmental (ESG) considerations will the vehicle incorporate into its design and implementation?
• Additionality
  • Does the vehicle aim to deploy financial instruments that are under-supplied, and will therefore catalyze financing with a high degree of additionality?
  • Does the vehicle have strong potential to address a market failure in the short term, and catalyze broader market financing in the long term?
• Stakeholder support
  • Does the vehicle have the support and buy-in of key stakeholders in the target region/country (e.g., government, prospective investors, partners)?
• Likelihood to achieve financial close
  • Is the structure of the vehicle bankable/investable?
  • Is the vehicle likely to attract private investors and close within the short or medium term?
  • Have investors been actively involved in the design of the vehicle to date?
• Contribution to Convergence’s portfolio
  • How does the vehicle contribute to Convergence’s mission and grant portfolio?

For more information, visit Convergence.