Gender-Responsive Climate Finance Window (Cycle 5) – (Up to USD 500,000)

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.

Funding

• 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 1) present an initial vehicle structure and investment thesis, and 2) 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 1) interest and ideally commitment from investors and relevant stakeholders to participate in the vehicle, and 2) 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.
    • See their 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.
  • 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.
  • 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. Learnings from the design stage will be synthesized into a public case study or learning brief and published to support market-wide learning.

For more information and application

Credit:fundsforngos.org