Applications Invited for Gender-Responsive Climate Finance Window

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About the Organization

Convergence is the global network for blended finance. We generate blended finance data, intelligence, and deal flow to increase private sector investment in developing countries.

Our global membership includes public, private, and philanthropic investors as well as sponsors of transactions and funds. We offer this community a curated, online platform to connect with each other on blended finance transactions in progress, as well as exclusive access to tailored trainings and original knowledge products such as case studies and reports. 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.

About the Grant

The Gender-Responsive Climate Finance Window 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. This Window is funded by the Government of Canada.

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 Applications - 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 proposals must at the minimum 1) include an initial vehicle structure and investment thesis, and 2) demonstrate early engagement with potential investors and relevant stakeholders.
• Applicants must use Convergence's feasibility study template, which is available in English and French.

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 proposals must 1) detail interest and ideally commitment to participate in the vehicle, from investors and relevant stakeholders, and 2) include a financial model.
• Applicants must use Convergence's proof-of-concept template, which is available in English and French.

Eligibility

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.
• See our grant portfolio for examples of vehicles supported by Convergence under past Design Funding windows.
• 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.

Sector Any sector(s) and sub-sector(s) aligned with climate change mitigation, adaptation and gender equality. For example, potential sectors and sub-sectors could include the following:

• Climate Change Mitigation:
• Low-carbon transportation
• Renewable energy generation (on-grid and off-grid)
• Energy efficiency
• Agriculture, forestry and land use
• Natural resource management
• Energy transmission, storage, and distribution
• Climate Change Adaptation:
• Sustainable/climate smart agriculture or aquaculture
• Climate-related insurance and disaster resilience
• Nature-based infrastructure
• Ecosystem-based adaptation
• Waste and wastewater management

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 1) proof of incorporation, and 2) financial statements for the previous fiscal year.

How to Apply

Our application process has three distinct stages:

Stage 1: Application questionnaire, proposal submission, and initial shortlisting

Stage 2: Detailed due diligence to shortlist proposals for Funding Committee review

Stage 3: Compliance review and approval by Convergence’s Board of Directors

Please read through the following steps carefully before submitting an application:

Step 1: Before drafting an application, fill out the design funding questionnaire on our website.

Step 2: Following submission of a questionnaire, email design.funding@convergence.finance to schedule a brief call with the Convergence team to ensure alignment of objectives and mission. If available, please attach a concept note or presentation to the email.

Step 3: After speaking to the Convergence team, applicants are encouraged to send a draft proposal to design.funding@convergence.finance at least 2 weeks before the application submission deadline. Feedback will be provided within 7 business days. Draft proposals must use the standard feasibility study or proof-of-concept template provided, unique to each Design Funding Window.

Step 4: Submit the final proposal by following the link provided to you via email.

Applications to this Window will be considered on a rolling basis. The upcoming application deadline is below.

September 9, 2022 (extended from June 30, 2022).

For more information please check the Link

Tags Environment and Sustainability Livelihood Sustainable Development Goals (SDGs) Women Empowerment Others