The initiative aims to accelerate the launch and expansion of impactful blended climate finance structures in developing economies. The primary focus will be on sectors that currently lack sufficient funding globally, but have the potential to deliver significant impact.
Catalytic Climate Finance Facility (CC Facility) Initiative
These sectors include sustainable energy, sustainable cities and resilient infrastructure, sustainable agriculture and land use, as well as thematic areas such as nature-based solutions and gender equality. While the program has a global scope, it will also prioritize sustainable agriculture and climate adaptation in Sub-Saharan Africa and South Asia through a dedicated thematic stream.
Funding
- The CC Facility provides grant funding of up to USD $500,000, personalized acceleration support, and access to a knowledge-sharing platform. Blended finance structures that are chosen will receive grant funding and acceleration support for a period of up to 18 months.
Eligibility Criteria
In order to be considered for selection, applicants need to fulfill the below-mentioned requirements:
- The investment focus should be on structures that deal with climate adaptation and/or mitigation.
- There are no restrictions on the sectors eligible for consideration.
- The target region for investment activities should be developing countries.
- While applicants do not necessarily have to reside in a developing country, the end beneficiaries and target activities must be situated in such countries. Local applicants who showcase a comprehensive understanding of local contexts and actively engage with local stakeholders will be given preference.
- Development Stage: Structures that have progressed beyond the initial adoption stage and are ready for the market.
- This includes blended finance structures that have undergone feasibility testing, completed proof of concept, conducted pilots, or developed a minimum viable product, and are now prepared for imminent launch and scaling.
- Team & Local Expertise: Demonstrated track record and experience in the specific sector and geography, along with the capacity and willingness to actively participate in the CC Facility program. Additionally, structures will be evaluated based on their ability to promote local capacity development, such as knowledge transfer, leadership development, and technology transfer, within the target area.
- Type of Entities: Eligible entities include organizations or a consortium of organizations, including advisory firms, foundations, non-profit organizations, fund managers, and private enterprises.
- Public institutions such as development finance institutions, multilateral development banks, UN agencies, and government agencies cannot serve as the lead applicant or recipient of the grant.
Evaluation Criteria
They evaluate eligible applications based on the following criteria:
- Additionality
- Comparison between this structure and other market options to highlight the limitations of alternative approaches in addressing the current development challenge.
- Assessment of how this structure innovatively addresses climate finance barriers or market failures with increased efficiency.
- Catalytic potential
- To what extent does the structure support climate mitigation and/or adaptation efforts in developing economies?
- Can this structure be easily replicated and scaled up to have a broader impact?
- Financial sustainability
- Are the appropriate stakeholders engaged in the structure and demonstrating an adequate level of commitment?
- Is the structure financially viable and sustainable? What is the expected timeframe for its operation?
- What criteria need to be fulfilled in order for concessional financing to be gradually phased out?
- Gender equality
- Is there a comprehensive understanding of the risks and opportunities related to gender within the context of the project?
- Is there evidence of or a plan in place to enhance the integration of gender considerations across various components of the project?
- Mobilization
- Does the vehicle possess the capacity to attract significant amounts of private capital and engage new categories of investors?
- Are there indications of interest or preliminary commitments from potential investors and funders regarding the solution? How viable and attractive is the structure for investment?
How to Apply
To kick-start your Application, click here.
Visit the official website of the Catalytic Climate Finance Facility Initiative for more information.
Application Deadline
April 24, 2024.
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