Overview
The Asia Climate Solutions (ACS) Design Grant, supported by leading donors including MAS, DFAT Australia, Olayan Group, UBS Optimus Foundation, and The Rockefeller Foundation, provides grant funding and acceleration support to catalyze innovative blended finance solutions that mobilize private capital for climate resilience across developing Asia.
According to the International Monetary Fund, developing countries in Asia require at least $1.1 trillion annually for climate mitigation and adaptation. However actual investments amount to only $333 billion, leaving a shortfall of about $800 billion. This gap is most pronounced in sectors such as the blue economy, clean energy, and sustainable cities and infrastructure, driven largely by factors like the heavy reliance on public funding, a limited pipeline of bankable projects, and policy uncertainties. Blended finance, which uses concessional public or philanthropic capital to de-risk investments, offers a pathway to mobilize private capital into projects that would otherwise be considered too risky.
To address these financing gaps, the current grant cycle will support feasibility and proof-of-concept solutions, particularly in these high-priority sectors including the blue economy, clean energy and sustainable cities & infrastructure. The emphasis is on commercially viable models that leverage blended finance to advance climate mitigation and adaptation initiatives benefiting local communities across Asia-Pacific.
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Programme Offerings
The Accelerator consists of two core components:
| Catalytic Grant Funding | Acceleration Support |
|---|---|
|
• Eligible organizations can apply for catalytic grants of up to $300k to support the development of blended finance solutions, from scoping and proof-of-concept. • These grants will support key design and implementation activities like legal and financial structuring, pipeline development, fundraising, piloting, and setting up impact measurement frameworks. Types of Grants |
• Ongoing technical feedback and guidance to refine investment models and strategies. • Opportunities to connect with Convergence’s network of investors and ecosystem partners to expand partnerships and mobilize resources for climate action. • Access to Convergence’s member trainings, blended finance data, market insights, and peer-learning opportunities. |
Types of Grants
Applicants can apply for the following types of catalytic grants:
| Grant Types | Feasibility Study | Proof-of-Concept |
|---|---|---|
| Definition and Uses of grant |
Funding may be sought to explore the feasibility of a new solution and validate its potential. Example activities include: 1. Scoping and refining design and structure of vehicle (financial and legal). 2. Market scoping, building initial pipeline and stakeholder consultations 3. Draft impact assessment and governance frameworks. |
At this stage, funding may be sought to support the design and structuring activities required to prepare for the vehicle’s possible launch. Example activities include: 1. Advancing fundraising and investor outreach. 2. Refining the blended finance vehicle’s design and legal structure. 3. Refining governance, impact frameworks. 4. Investment pipeline development. |
| Maturity of the Solution and Pre-requisite | Developed initial design and structure of the blended finance vehicle, the impact and investment thesis, and early stakeholder engagement. | Refined the financial model, capital structure, impact analysis, and governance with advanced engagement with potential investors |
| Amounts | Up to $200k | Up to $300k |
| Type of funding | Non-repayable grants | Non-repayable or conditionally repayable grants |
Eligibility Criteria
Purpose:
- Proposals must articulate a clear need for grant support for the design and/or launch of an innovative blended finance vehicle.
- Solutions must target climate mitigation and/or adaptation.
- The proposed solution should be a financial instrument with a blended finance structure. It can be in the form of a fund, project finance vehicle, private company, bond, results-based financing, facility, or any other type of financial instrument.
- Vehicle must demonstrate potential to drive private investment at scale for development impact in Asia-Pacific.
Applicant types: Proposals will only be accepted from organizations or consortium of organizations. For example, eligible organizations could include asset owners, asset managers, advisory firms, foundations, not-for-profit organizations, and private enterprises. The lead organization must be able to provide 1) proof of incorporation, and 2) financial statements for the previous fiscal year.
Focus geography: Proposals target one or more developing market(s) in Asia. Applicants do not need to be domiciled in a developing market(s) but end beneficiaries and target activities must.
Focus sectors: The thematic focus for this grant cycle is on solutions targeting the following sector(s) and sub-sector(s). Examples of sub-sectors include:
- Clean Energy Transition
- Renewable energy generation (on-grid and off-grid)
- Energy efficiency
- Energy transmission, storage, and distribution
- Sustainable Cities & Infrastructure
- Sustainable infrastructure/housing
- Low-carbon transportation
- Waste and wastewater management
- Urban Nature-based Solutions
- Blue Economy
- Sustainable fisheries and aquaculture
- Coastal protection
- Blue Carbon
- Eco-tourism
- Climate-related insurance and disaster resilience
Evaluation Criteria
We evaluate eligible applications based on the following criteria:
1. Development Impact:
- The blended finance solution is designed to deliver inclusive, measurable and significant environmental and social impact.
- Integration of impact across the design and implementation of the solution.
- Clear KPIs and use of global standards for measurement and monitoring of impact.
2. Track Record and Capabilities:
- Organization’s relevant experience in designing and managing investment vehicles.
- Commitment of the core team.
- Local presence and partnerships in target markets.
3. Additionality:
- Clear market gap and rationale for using a blended finance structuring approach.
- Potential to drive capital in targeted markets and create new investable opportunities.
- Strategic use of ACS acceleration support and catalytic grant funding to scale.
4. Scalability and/or replicability:
- Clear capital structure and fundraising strategy.
- Potential to mobilize private capital at scale.
- Pathway to scale-up, reach target size, and replicate across markets.
5. Innovation & Demonstration Effect:
- Potential of the solution to create learnings for the field and be adapted or replicated by other practitioners.
- Developing a new model or replicating an existing model within a new market context.
6. Likelihood to achieve financial close:
- Bankability of the structure and alignment with investors’ risk–return profiles.
- Progress toward reaching a close and clarity on next steps.
- Robust risk management and governance framework.
7. Stakeholder Support:
- Support from key internal and external partners in the target region/country.
- Well-defined roles and engagement strategy for launch.
For detailed evaluation criteria and scoring, refer to the Evaluation Criteria document.
