Asia Climate Solutions Design Grant Window 2024 for Organizations (Up to USD 400,000 Funding) Deadline: 12 February, 2024

The Asia Climate Solutions Design Grant Window is open for Concept Note submissions. Convergence, a global network for blended finance, organizes the initiative.

The upcoming grant application deadline is on February 12, 2024. Upon submission, the Convergence team will review all concept notes and invite select candidates to submit a full proposal for funding consideration.

Design Funding Scope

The Asia Climate Solutions (ACS) Design Grant funds innovative blended finance solutions, mobilizing private capital for climate transition and resilience in developing Asian markets.

Key donors include the Monetary Authority of Singapore, Olayan Group, UBS Optimus Foundation, and the Department of Foreign Affairs and Trade Australia, demonstrating the potential of family offices, foundations, and donor agencies to catalyze blended finance.

The grant targets critical climate sectors like nature-based solutions (NbS), sustainable cities, and clean energy transition. Offering feasibility studies and proof-of-concept grants, it encourages innovative solutions using blended capital structures to attract climate-smart investments.

The grant includes two types of funding, where applicants can seek feasibility study or proof-of-concept funding.

Key Details and Dates

Organizer: Convergence Blending Global Finance

Application Deadline: 12 February, 2024

Funding Type: Grant

Eligible Countries: Developing Markets in Asia

Host Country: Asian Countries

Benefits and Financial Aids

As mentioned before, the Asia Climate Solutions (ACS) Design Grant aims to fund the design and launch of innovative blended finance solutions. The grant targets Asia’s critical climate mitigation and adaptation sectors, including nature-based solutions, clean energy transition, and sustainable cities and infrastructure.

Funding includes feasibility study grants ranging from USD 50,000 to USD 200,000 and proof-of-concept grants ranging from USD 200,000 to USD 400,000. Please read the details for each type of funding available as follows:

Funding Options:

Applicants have the option to choose between Feasibility Study Grant or Proof-of-Concept Funding.

Feasibility Study Grant:

• Grant range: USD 50,000 to USD 200,000.
• Requirements:

1. Present a practical investment thesis and initial capital structure.
2. Prove early engagement with potential investors and stakeholders.

• Eligible Activities:

1. Assessing inevitability and bankability.
2. Market scoping and stakeholder consultations.
3. Conducting impact analysis, including climate and gender considerations.
4. Designing capital and legal structures.

Note: Promising feasibility studies may qualify for follow-on proof-of-concept funding.

Proof-of-Concept Grant:

• Grant range: USD 200,000 to USD 400,000.
• Expectations:

1. Demonstrate interest and, ideally, commitment from investors and stakeholders.
2. Provide a financial model.

• Eligible Activities (if feasibility study completed):

1. Finalizing capital structure and financial model.
2. Fundraising and marketing with prospective investors.
3. Selecting implementing partners.
4. Finalized legal structure and produced key launch documents.
5. Developing an impact assessment framework and gender action plan based on prior feasibility work.Top of Form

Eligibility Criteria for the Asia Climate Solutions Design Grant

The applicants’ proposals must:

• Articulate a clear need for grant support to design or launch an innovative blended finance solution.
• Target climate change mitigation or adaptation.
• Target developing markets in Asia.
• Focus on sectors such as nature-based solutions, clean energy transition, sustainable cities and infrastructure, and all the sub-sectors for each.
• Be submitted by organizations or groups of organizations, such as asset owners, asset managers, advisory firms, foundations, not-for-profit organizations, and private enterprises.

Required Documents

Applicants should prepare and submit the following:

• Feasibility Study Grant: Investment thesis, initial capital structure, early engagement with potential investors, impact analysis, and legal structure.
• Proof-of-Concept Grant: Interest/commitment from investors, financial model, finalizing capital structure, fundraising/marketing activities, selection of implementing partners, legal structure, and impact assessment framework.

Selection Process of the Asia Climate Solutions Design Grant

Concept notes are reviewed for eligibility, and a longlist is selected for Stage 2. Full proposals undergo a detailed review, technical due diligence, and shortlisting. Shortlisted proposals are recommended to the Investment Committee for approval, followed by compliance review and final approval by Convergence’s Board of Directors.

Evaluation Criteria

All applications will undergo scoring on a scale of 0-100, dependent on the solution’s stage.

Maximum Available Scores:

• Feasibility Study: 100
• Proof of Concept: 100

Criteria:

• Development Impact (Feasibility Study: 19, Proof of Concept: 19)

1. How will the concept integrate climate mitigation or adaptation into its design and operations?
2. What are the anticipated environmental and socioeconomic impacts of the concept?
3. How is gender equality integrated into the design and operations of the concept?
4. Which indicators will be employed to assess progress and measure outcomes?

• Scalability or Replicability (Feasibility Study: 19, Proof of Concept: 19)

1. How much private capital does the concept note aim to catalyze?
2. If successful, can other practitioners use a similar approach? Will it contribute to creating a pipeline of investable climate finance solutions in emerging markets?

• Additionality (Feasibility Study: 17, Proof of Concept: 17)

1. Is the concept designed to deploy under-supplied financial instruments, catalyzing financing with a high degree of additionality?
2. Does the concept possess significant potential to cover a market failure in the short term and stimulate broader market financing in the long term?
3. To what degree will the design grant act as a catalyst in achieving the targeted development impact?

• Innovation and Demonstration Effect (Feasibility Study: 17, Proof of Concept: 13)

1. Is the concept testing a never-before-tested design?
2. Is it replicating an existing approach in a new market?
3. Does it demonstrate the rationale and business case for using blended finance for climate adaptation or mitigation?

• Likelihood to Achieve Financial Close (Feasibility Study: 9, Proof of Concept: 12)

1. Is the proposed structure deemed bankable/investable?
2. Does the concept potentially attract private and nearby investors within the short or medium term?
3. Have investors actively participated in the concept’s design up to the present?

• Track Record of Applicant (Feasibility Study: 12, Proof of Concept: 12)

1. Does the applicant have the expertise, track record, and capacity required to succeed?

• Stakeholder Support (Feasibility Study: 7, Proof of Concept: 8)

1. Does the concept enjoy the support and buy-in of key stakeholders in the target region or country, including government, prospective investors, and partners?

How do you apply for the Asia Climate Solutions Design Grant?

Please follow these application steps. Please remember that the application process has two steps, including the Submission of concept notes and the Submission of full proposals:

• Interested applicants can start their application using the Convergence Design Funding link below.
• Submit a concept note and supporting materials by the deadline.
• If longlisted, submit a full proposal following the provided instructions.
• Shortlisted proposals undergo due diligence and interviews.
• Investment Committee review and approval.
• The Organizer will start contracting with selected awardees for design activities and key milestones.

Apply Now

Check for more details about the 2024 Asia Climate Solutions Design Grant on the Convergence Blending Global Finance webpage.