Deadline: 21-Jan-24

Milkywire announced the Fund Climate Transformation Funding (CTF) to support solutions with the greatest potential long-term climate impact, rather than focusing strictly on enabling carbon offset claims. Foreign Embassies Small and Flexible Grants for High-Impact Projects Find opportunities that match your development projects DOWNLOAD NOW

The Milkywire Climate Transformation Fund (CTF), launched in 2021, is a charitable fund that supports pioneering projects needed to achieve net zero globally. The level of support for each project in the 2023 allocation rounds was typically in the range of $150,000–$300,000 USD. It may be higher in 2024. Projects with greater needs may receive greater support and vice versa.

Pillars

• In all areas, they are looking for projects that implement solutions directly; that is, markets, MRV providers, applications, etc., are outside the scope.
  • Durable carbon removal
    • Helping to remove CO₂ from the atmosphere through carbon removal with durable long-term storage.
    • CCS/CCU and carbon storage with an insecure or short storage time are not included in this pillar (nature restoration and protection projects are supported in a separate pillar).
    • They want to distribute funds catalytically, meaning they are not only looking at high-quality projects but also favoring projects where their support can make the biggest difference. They aim to support the testing of early-stage, unproven technologies at scale and help scale up more mature solutions (e.g., biochar) by supporting high-quality, sustainable projects. They are especially interested in projects that help expand the CDR ecosystem and complement the 13 CDR projects they have supported so far.
    • They intend to make pre-purchases of carbon removal with partial or full payments and do not have the capacity to sign longer-term purchase agreements, although the delivery of removal credits may occur over several years.
  • Restoration and protection of nature
    • Nature-based solutions implemented by non-profit organizations that help adapt to and mitigate the effects of climate change , such as afforestation, reforestation, forest preservation, restoration of degraded lands, wetlands, mangroves and much more.
    • To date, they have supported seven projects in this pillar, and many of them need additional funding to continue generating impact. Consequently, most of this year's funding in this pillar will go to existing partners. However, they have resources to potentially support 1-2 additional projects if they receive strong proposals.
    • In particular, they are interested in innovative projects that have a clear roadmap to becoming self-sustaining or to being replicated on a large scale. In addition to reducing emissions and absorbing CO₂, the projects should ideally:
      • help to conserve ecosystems rich in biodiversity
      • to provide synergistic benefits to local communities, for example, reduction of poverty or best agricultural practices
      • It should be planned and implemented with an equity-first approach, placing decision-making in the hands of local populations.
  • Emissions reduction
    • To support high-impact projects implemented by non-profit organizations that help to avoid or reduce emissions, as well as to support policy advocacy projects that fight against climate change policies.
    • Direct emissions:
      • In this category, they aim to support effective projects that directly reduce emissions, but which do not yet have a model. business to happen independently of climate impact funding. For example, building renewable energy to replace fossil fuels in remote locations; or supporting startups and entrepreneurs in the area of ​​green energy transition, green mobility and much more. They prioritize innovative projects with the potential to lead to bigger changes, become self-sustaining and/or replicated.
    • Political advocacy:
      • They believe that effective organizations advocating for changes in climate policy can be far more profitable than other climate solutions. Therefore, they aim to support professional and effective non-profit organizations in developing and advocating for climate solutions. These might include, for example, projects advocating for the phasing out of fossil fuels, supporting political dialogues on the energy transition and other climate issues, and projects advocating for greater support for R&D and... research of climate solutions.
      • So far, they have supported nine projects in this pillar, and many of them have additional funding needs to continue generating impact. Consequently, most of this year's funding in this pillar will go to existing partners. However, they are open to adding 1 or 2 additional projects if they feel the fit is right. They have the resources to potentially support 1-2 additional projects if they receive strong proposals and are particularly interested in finding strong avoided emissions projects with catalytic potential.

Criteria

• Restoring and protecting nature
  • They will support selected and evaluated organizations that preserve forests and ecosystems and restore degraded areas. This helps to reduce emissions, absorb CO₂ and conserve nature globally. See the supported projects here.
  • Requirements:
    • Projects that protect or increase carbon stocks in nature.
    • The organization is evaluated and assessed by Milkywire or by third parties.
    • Sustainable from a local social and environmental perspective. The project implementation will not cause harm to people or local ecosystems.
  • Criteria:
    • Co-benefits. Projects are given greater priority if they create benefits for people living in poverty or if they help ecosystems in ways other than simply storing more carbon.
    • The catalytic effect of donation. They prefer projects that can be replicated, disseminated in new communities, or that help create new, innovative solutions.
• Permanent carbon removal solutions
  • To halt the climate crisis, CO₂ emissions must be halved over the next 10 years and then brought to near zero. But science This shows that emission reductions will not be enough to limit global warming to 1.5°C. Therefore, they must also remove excess carbon dioxide from the atmosphere and store it permanently. By supporting new forms of carbon removal and storage, they contribute to the development of these methods and make them cheaper for others to implement.
  • For methods where carbon removal certificates are not provided, they will also consider supporting research, helping new methods prove their concept and become operational.
  • Requirements:
    • If this happens now, the CO₂ will be captured in the coming year(s), not decades from now.
    • Due to the high additionality factor, the tons removed would not happen without someone paying for it.
    • Sustainable from a local social and environmental perspective. The project implementation will not cause harm to people or local ecosystems.
  • Criteria:
    • Potential. The method has the potential to become a major part of the solution to the climate crisis.
    • A catalytic effect. The donation or purchase of removal certificates leads to greater growth of the method than just the tons that are purchased.
    • Durability (permanence). Ideally, CO₂ should be stored for hundreds or thousands of years.
    • We are certain the project will proceed as agreed.
    • Co-benefits. Projects are given greater priority if they create benefits for people living in poverty or if they help ecosystems in ways other than simply storing more carbon.
  • When credits or certificates are purchased, they are redeemed, meaning they cannot be resold and will not be accounted for as a financial instrument.
• Decarbonization/Fading away from fossil fuels
  • They will support effective projects that reduce emissions but are not profitable enough to be self-sustaining, such as building renewable energy plants to replace fossil fuels in remote locations. They will also support organizations civil society that are effective in promoting efforts to accelerate the phasing out of fossil fuels.
  • Requirements and criteria:
    • Renewable energy
    • Requirements:
      • Sustainable from a local social and environmental perspective. The project implementation will not cause harm to people or local ecosystems.
      • Evaluated by a third party or certified.
    • Criteria:
      • High additionality. They want to support projects that are unlikely to happen without their support (for example, they are unlikely to support a project if similar projects are happening without donations or the sale of carbon credits).
      • Catalytic effect. Potential of the solution type to scale and create impact beyond the project boundaries (e.g., being a pioneering project for a new solution).
      • Co-benefits. Projects are given greater priority if they create benefits for people living in poverty or if they help ecosystems in ways other than simply storing more carbon.
    • Projects for policy change
    • Requirements:
      • They earmark the donation for a specific project or workflow, rather than donating general funds to the organization as a whole.
      • The organization is evaluated and assessed by Milkywire or by third parties.
    • Criteria:
      • Potential effect of the political proposals advocated by the organization.
      • The organization has a history of implementing concrete political changes.
      • Chance of the project happening without the donation (lower chance, higher score).

For more information, visit Milkywire .