Applications Invited for Asia Climate Solutions (ACS) Design Grant

Follow us@ngobox

About the Organization

Convergence is the global network for blended finance. We exist to increase private investment in emerging markets and developing economies to advance the UN Sustainable Development Goals (SDGs) and Paris Agreement.

Our members are part of a global community of institutions and businesses dedicated to driving capital to where it is needed most. Members include private investors looking to diversify their portfolios, businesses seeking capital, as well as public agencies and philanthropic foundations looking to make their funds go further.

We offer this community exclusive access to original market intelligence and knowledge products (such as case studies, data analyses, and online and in-person training), networking events, and more. To accelerate advances in the field, Convergence also provides grants for the design of vehicles that could attract private capital to global development at scale.

Backed by multiple governments and internationally recognized philanthropies, Convergence is a not-for-profit corporation in Toronto, Canada that operates globally with physical presence in Washington, DC, Kigali, Nairobi, La Paz, and Singapore.

We envision a world where blended finance makes the SDGs investible in emerging markets and developing economies.

About the Grant

The Asia Climate Solutions (ACS) Design Grant awards grant funding for the design and launch of innovative blended finance solutions that mobilize private capital to sectors critical for climate transition and resilience in developing markets in Asia. The ACS Design Grant aims to demonstrate the potential of funding from family offices, foundations, and donor agencies to catalyze blended finance solutions addressing the climate finance gap, at scale. The anchor donors of this initiative are the Monetary Authority of Singapore, the Department of Foreign Affairs and Trade Australia, Olayan Group, UBS Optimus Foundation, and Rockefeller Foundation.

The ACS Design Grant will target critical climate mitigation and adaptation sectors in Asia including nature-based solutions (NbS), clean energy transition, and sustainable cities and infrastructure. It will provide feasibility study and proof of concept grants for innovative solutions using blended capital structures to crowd-in climate-smart investment in the region.

The current cycle will have a thematic focus on sustainable agriculture and/or clean energy solutions with innovative models demonstrating the use of blended finance for mobilizing local sources of public, private, and/or philanthropic capital to support vulnerable local communities in key Southeast Asian markets such as Indonesia, Philippines, and Vietnam. Applicants are invited to apply with solutions that align with the thematic focus or the broader criteria of the program.

Types of Funding Available

Applicants can apply for feasibility study or proof-of-concept funding.

Feasibility Study Grant

Feasibility study applications must be able to 1) present a viable investment thesis, and an initial capital structure and 2) demonstrate early engagement with potential investors and relevant stakeholders.

• Grants range between USD 50,000 to USD 200,000.
• Funding to explore the feasibility of the concept. For example, a combination of the following activities would be eligible:
• Assessing the investability/bankability of the concept
• Conducting market scoping and stakeholder consultations
• Conducting an impact analysis including climate and gender impact potential
• Designing the capital and legal structure
• Promising feasibility studies funded through this window may be considered for follow-on proof-of-concept funding.

Proof-of-Concept Grant

Proof-of-concept applications will be expected to present 1) interest and ideally commitment from investors and relevant stakeholders to support the concept, and 2) a financial model.

• Grants and conditionally repayable grants range between USD 200,000 to USD 400,000.
• If a feasibility study (or equivalent) has been completed, then funding would be provided to complete all design and structuring activities to launch. 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
• Development of an impact assessment framework and gender action plan (or equivalent) based on the impact analysis from prior feasibility work.

Note: Both grants and conditionally repayable grants will be awarded to support the design and launch of solutions. Conditionally repayable grants and their repayment terms will be considered for Proof of Concept applications on a case-by-case basis. Repayment is expected only if the solution successfully launches and meets key milestones such as financial close.

Eligibility

Proposals must meet the following eligibility criteria:

• Purpose:
• Proposals articulate a clear need for grant support for the design and/or launch of an innovative blended finance solution.
• Solutions must target climate change mitigation and/or adaptation.
• The proposed solution should be implemented through a financial instrument. It can be in the form of a fund, project finance vehicle, private company, bond, results-based financing, facility, or any other type of instrument.
• Geography: Proposals target one or more developing market(s) in Asia. Applicants do not need to be domiciled in a developing market(s) but end beneficiaries and target activities must.
• Sectors: Proposals target one or more of the following sector(s) and sub-sector(s):
• Nature-based Solutions (NbS)
• Sustainable forestry and climate-smart land use / adaptation
• Sustainable agriculture and agroforestry
• Climate-related insurance and disaster resilience
• Natural resource management, directly linked to preserving and protecting natural assets, such as:
• Sustainable fisheries and aquaculture
• Sustainable forestry
• Forest and blue carbon
• Coastal protection
• Eco-tourism
• Clean Energy Transition
• Renewable energy generation (on-grid and off-grid)
• Energy efficiency
• Energy transmission, storage, and distribution
• Sustainable Cities & Infrastructure
• Sustainable infrastructure/housing
• Low-carbon transportation
• Waste and wastewater management
• Urban Nature-based Solutions
• Thematic Focus: The current cycle will also have a dedicated thematic focus on sustainable agriculture and clean energy solutions with innovative models demonstrating the use of mobilizing local sources of capital to support vulnerable local communities in key Southeast Asian markets such as Indonesia, Philippines, and Vietnam. Applicants can apply with solutions that meet this thematic focus or apply under the broader criteria of the program.
• Applicant: Proposals will only be 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 private enterprises. The lead organization must be able to provide 1) proof of incorporation, and 2) financial statements for the previous fiscal year.

How to Apply

• Stage 1: Submission of concept notes
• Interested applicants can initiate the application process by logging in to https://designfunding.convergence.finance/en/
• The next application deadline is November 22, 2024.
• Stage 2: Submission of full proposals
• Stage 3: Investment Committee review and approval
• Stage 4: Compliance review and Final Approval
• Stage 5: Contracting

For more information please check the Link

Be A Part of Asia’s Largest CSR & Sustainability Forum- India CSR Summit & ESG Forum 2024 | 16th*, 17th & 18th October 2024

Tags Environment and Sustainability Innovations and Technology Others