The CC Facility is currently accepting concept notes to help early-stage, market-ready structures become investable solutions, helping to expand the climate finance ecosystem.

It seeks to contribute to building a market that unlocks the most innovative structures that can be standardised, replicated and scaled. Support for climate solutions through a strategic, bundled package of grant funding and tailored technical assistance to address the main barriers preventing development and the mobilisation of private capital, as well as additional benefits provided holistically throughout the programme.

The Catalytic Climate Finance Facility (CC Facility) is focused on scaling sustainable climate finance by providing market acceleration services for early-stage, market-ready blended finance vehicles in underfunded sectors in developing countries. It is a partnership between Convergence and the Climate Policy Initiative to bring a holistic solution in a fragmented market to accelerate the deployment of high-impact blended finance vehicles by catalysing private capital to close the climate finance gap.

Together, Convergence and CPI will offer a complete set of tools to help new blended finance vehicles scale these solutions faster, navigate potential pitfalls and maximise their impact as a climate financier.

Thematic Flow

• The call for proposals will have a special focus on solutions aimed at agriculture sustainable development and adaptation in sub-Saharan Africa and South Asia.

Information on financing

• Up to 500,000 US dollars over 12 to 18 months to test, structure, launch and expand solutions. Funding will be conditional, subject to the achievement of predetermined milestones and associated results. Grant funding exclusively for the design and launch of the solution and grant amounts will depend on the resource requirements for the development phase of the solutions. These stages include: feasibility, planning, proof of concept and scale-up.
• Acceleration support
  • Personalised technical assistance over 12 to 18 months to develop capacities that would accelerate the market deployment of combined climate finance solutions. It includes a comprehensive offer of technical assistance services focused on strategy, fundraising and operations. The support will proactively address key barriers, reducing investment risk.

Eligibility Criteria

• The CC Facility finances blended finance vehicles aimed at related to climate change in developing countries. Applications will be assessed on the basis of a set of qualifying characteristics and key evaluation criteria.
• Qualification characteristics:
  • Investment theme: solutions aimed at climate adaptation and/or mitigation.
  • Sectors: a wide range of sectors.
  • Geography: developing countries. Applicants do not have to be domiciled in a developing country, but final beneficiaries and target activities must. Preference will be given to local applicants who demonstrate a nuanced understanding of local contexts and engagement with local stakeholders, where relevant.
  • Stage: early-stage solutions that are going through an early adoption stage in their development process. This includes financial vehicles that have already tested the idea through proof of concept, proven pilots or a minimum viable product and are ready to expand.
  • Team and local capacity: proven track record and experience in target sectors and geography, ability and willingness to engage with the programme and presence on the ground
  • Type of entity: organisations or a consortium of organisations, including consultancy firms, foundations, non-profit organisations, managers of funds and private companies. The lead organisation must be able to provide proof of incorporation and financial statements for the previous financial year.

Main assessment criteria

• Additionality: addresses barriers to climate finance or a market failure in a new or more efficient way than existing solutions. It presents a higher degree of additionality through the impact delivered.
• Catalytic potential: demonstrates the ability to achieve socio-economic and environmental impacts, prioritising the increase of local capacity through the transfer of knowledge and skills. technology. It shows potential for scalability and replicability and a nuanced understanding of the local context(s).
• Financial sustainability: demonstrates the likelihood of achieving financial closure, including the team's ability to implement the solution and have a strategic plan for market viability.
• Gender equality: demonstrate the ability to respond to relevant risks and opportunities in terms of gender. Intentionally integrates gender considerations into all operations and anticipates positive results for gender equality.
• Mobilisation: shows potential for mobilising private capital and attracting the participation of new segments of investors. Shows that the vehicle is bankable/investable.

For more information, visit Catalytic Climate Finance Facility.