Convergence awarded a feasibility study grant to Haqdarshak Empowerment Solutions Private Limited (Haqdarshak) for the design of a blended finance facility that will help rural farming households in India access climate-friendly government subsidies and low-cost debt for acquiring climate-friendly assets, such as solar pumps and solar panels.

Over 60% of India’s population is engaged in the agriculture sector, which is one of the largest consumers of fossil fuel in India. Over 7 million diesel pumps are used on Indian farms everyday, which contribute significantly to carbon dioxide emissions. The Government of India is focusing its efforts to reduce the use of fossil fuel by farms to zero and encourage the agriculture sector to use renewable energy, through the introduction of several climate friendly subsidy schemes.

The Climate Resilience Collective will partner with local non-banking financial entities to offer low-cost debt to farmers seeking finance for the up-front costs of acquiring climate friendly assets. The facility will also support farming households in identifying an appropriate subsidy scheme and applying for the subsidies. Rural farmers in India are largely disconnected with formal financial channels and instead rely on informal financing methods. Through the facility, Haqdarshak will promote financial inclusion and support these farmers in building their credit history. The facility will also support women empowerment and gender equality by engaging local women as field agents to connect with farming households and provide last mile application support.

Convergence's grant will support Haqdarshak in exploring the feasibility of establishing the Climate Resilience Collective. Haqdarshak has been providing assisted-tech services for doorstep delivery of welfare entitlements for individuals and micro-businesses. To-date, they have collectively reached out to over 2.7 million citizens educating them about eligible welfare programs, facilitated over 2.3 million applications, and unlocked over USD 514 million in welfare benefits. With the Climate Resilience Collective, they aim to support about 5,000 farming households in rural India to access low-cost debt to procure climate friendly assets and infrastructure and offer end-to-end support to access relevant government subsidies to reduce the final cost to the farmer.

__Design question and learning potential for the market:__ *How can blended finance be used to encourage adoption of climate friendly infrastructure at a grassroots level while promoting gender equality?*

Haqdarshak understands the key factors that obstruct a rural farmer’s access to climate friendly assets. These are the farmers’ low level of awareness about various means to access climate friendly assets (such as by taking advantage of available government subsidy schemes), their overall weak financial position and lack of credit profile which restricts them from mainstream financial ecosystem to pay for the high upfront investment required to purchase and install the assets, and the complicated and lengthy subsidy application process. Through the Climate Resilience Collective, Haqdarshak intends to design a simple yet unique solution to this problem using a blended finance approach. 

During the feasibility study, Haqdarshak will conduct market scoping and engage with key stakeholders to identify an optimal legal structure and operational mechanism for the blended finance vehicle to provide low cost debt to rural farmers and support them to build their credit history. On the subsidy application front, Haqdarshak will build on their experience of providing doorstep delivery of welfare entitlements to Indian citizens through their tech assisted platform. They will identify, train, and employ mostly women from the local communities as field agents. Field agents will play a crucial role in generating awareness about clean energy subsidy schemes and providing last-mile application support to rural farming households.

Global Affairs Canada Logo

application/vnd.openxmlformats-officedocument.wordprocessingml.document

English Application Template - Feasibility Study - Gender-Responsive Climate Finance Design Funding Window

English Application Template - Proof-of-Concept - Gender-Responsive Climate Finance Design Funding Window

French Application Template - Feasibility Study - Gender-Responsive Climate Finance Design Funding Window

French Application Template - Proof-of-Concept - Gender-Responsive Climate Finance Design Funding Window

The Gender-Responsive Climate Finance Design Funding Window 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. This Window is funded by the Government of Canada.

Le Guichet de financement de la conception du financement climatique sensible au genre va accorder des subventions de démarrage pour la conception et le lancement de véhicules de financement mixte innovants axés sur l’intersection des problématiques de changement climatique et d’égalité des genres dans les marchés émergents du monde entier. Ce guichet est financé par le gouvernement du Canada. 

Concept notes accepted all year round.

Design of Climate Resilience Collective

Convergence awarded a proof-of-concept grant to Beyond Finance Consulting Limited for the design and launch of Beyond Finance Asia-Pacific Facility, a blended finance vehicle that will invest in companies primarily serving women, including companies led or founded by women in Asia and Africa.

Women are a growing segment of consumers. According to the 2X Challenge, women constitute the world’s largest emerging market, more than twice the size of India and China combined. However, women in low-income communities in emerging countries face barriers when accessing a range of affordable products and services, for instance they are more likely to have less or no access to clean energy, and water and sanitation. In sectors where they represent a huge part of the workforce, such as sustainable agriculture, they are often excluded from managerial positions, funding, and may not possess collateral. Failing to understand and serve the needs of women in emerging countries represents a loss of business opportunity and has an adverse impact on the provision of climate smart products and services.

Beyond Finance Asia-Pacific Facility will provide private debt to companies in emerging Asia and Sub-Saharan Africa. It will operate alongside a technical assistance facility with a core focus on the food- water-energy nexus and financial inclusion in frontier markets that will aim to develop better-designed climate smart solutions by applying a gender lens. While the technical assistance facility will support investees in identifying and meeting targets related to climate change and gender equality, the fund will offer innovative financing mechanisms such as KPI-linked loans to encourage investees to achieve their pre-agreed gender and climate related targets.

Beyond Finance was previously awarded a grant under the Indo-Pacific design funding window to explore the feasibility of the facility. Convergence’s proof-of-concept grant funding will support Beyond Finance Consulting Limited, a first-time fund manager and an all women team, to build on the progress made at the feasibility study stage and to complete all design activities and prepare the facility for launch.

__Design question and learning potential for the market:__ *How can a blended finance vehicle be designed to support climate smart solutions in emerging economies?*

Identifying the challenge that women face to access finance in emerging markets, Beyond Finance is working on the design of a vehicle that serves this market gap. Beyond Finance has successfully completed the feasibility study stage where they assessed the legal, operational and financial structures necessary to implement the Beyond Finance Asia-Pacific Facility. They will utilize the proof-of-concept stage grant funding to finalize these elements alongside activities such as confirming investee pipeline and fundraising. 

Beyond Finance will also be exploring a unique capital structure for the facility where micro-levy donations could be used to capitalize the junior tranche. Micro-levy donations are a fund pool created through the sale of water bottles at large grocery retailers. Since corporates and retailers are an untapped investor segment in the blended finance ecosystem, the use of micro-levy donations as catalytic capital in the facility could offer an opportunity for a new set of investors to participate in blended finance.

In addition, the proof-of-concept stage grant funding is instrumental for Beyond Finance to identify the appropriate design of the technical assistance facility, which can support climate smart solutions in Asia and Africa to strengthen their climate and gender lens. The grant funding will also be crucial to explore impact-linked loan structures to incentivize companies to achieve pre-agreed climate and gender-related targets.

Design of a blended finance facility to enable access to finance for gender focused climate smart solutions

Convergence awarded a proof-of-concept grant to Dolma Himalayan Energy (“DHE”) for the design and launch of a blended finance vehicle, Dolma Himalayan Energy Investment Platform (“the platform”) for investing in renewable energy and battery storage projects in Nepal. 

Nepal faces significant power supply deficits during peak demand periods, particularly in the winter. Currently, Nepal relies primarily on fossil fuel-powered energy imports from India to address this deficit. This substantially contributes to carbon emissions in the region and leads to deposition of black carbon in the Himalayas, a proven catalyst for accelerating glacial melt. 

The platform intends to incorporate a peak energy management system that dispatches non-intermittent power to offset this power deficit by utilizing solar-generated power from the daytime towards the evening peak load time. Such a platform can potentially reduce reliance on energy imports from India which would result in lower energy prices and reduced carbon emissions for Nepal.

DHE will manage the platform and will also be the developer for projects supported by the platform. Convergence’s grant will support DHE to structure and launch the platform with an initial solar farm and battery storage project in Nepal. The platform aims to eventually develop 400MW of renewable energy projects in Nepal.

__Design question and learning potential for the market:__ *How can a blended finance platform be developed to invest in and develop renewable energy assets in Nepal?*

DHE has already conducted an initial feasibility study for the platform and identified potential investors and project sites. During the proof-of-concept, DHE will further engage with key stakeholders including investors, operational partners and regulators to implement an initial project to launch the platform. DHE will also utilize the Convergence funding to determine the appropriate blended finance structure comprising of grants, equity, and commercial debt. The initial development stage of projects will be supported by grants while the construction and operation stages will be funded by a combination of equity and debt. During this period, DHE will also work on identifying the appropriate legal structure and impact framework for the platform.  


DFAT Logo

*The next submission deadline is to be confirmed. Please visit this page for updates. *

The Indo-Pacific Design Funding Window provides grant funding for the design and launch of catalytic blended finance solutions in certain countries in the Indo-Pacific region, focused on any of the following:

1) __Climate Finance__ - Addressing climate change mitigation, climate change   adaptation or both. Blended finance solutions with co-benefits of climate   action are encouraged.

Must align with at least one of the following: SDG 7 (Clean Energy), SDG    11 (Sustainable Cities), SDG 12 (Responsible Consumption), SDG 13 (Climate Action), SDG 14 (Life Below Water), SDG 15 (Life on Land).

2) __Gender Equality__ -  Aim to make a significant contribution to gender     equality outcomes.

Must align with SDG 5 (Gender Equality).

3) Blended finance solutions that also lead to climate action co-benefits like job creation are encouraged.

This Window is funded by the Australian Government. 

For the upcoming deadline, we will give preference to -

- Proof of concept stage applications that can attract private sector capital at scale and launch within 12 months of receiving the design funding grant. 

- For applications focused on climate finance, those focused on sustainable and resilient infrastructure, climate-smart agriculture and climate insurance. 

Each application will be evaluated in context of the geographic and sectoral focus of the proposed financial structure. 

---

## Types of Applications
Practitioners can apply for feasibility study or proof of concept funding:

- __Proof of concept:__ If a feasibility study (or equivalent) has been completed, funding to complete all design and structuring activities to launch the vehicle. For example, finalizing the capital structure and financial model, establishing the legal structure, and producing key documents. Convergence will award repayable __grants up to $350,000__ for proof of concept work. Determination of whether a grant is repayable will be made on a case-by-case basis.

- __Feasibility study:__ Funding to explore the feasibility of the vehicle. For example, assessing the investability/bankability of the transaction, conducting market scoping and developing the vehicle structure. Convergence will award __grants up to $200,000__ for feasibility studies. Promising feasibility studies funded through the Design Funding Window will be considered for follow-on proof of concept funding.

---

## Eligibility Criteria
To be eligible for consideration for the Indo-Pacific Design Funding Window, proposals must meet the following criteria:

- __Focus__ - The proposal must be for a blended finance vehicle. The vehicle must aim to use catalytic capital from public or philanthropic sources to attract private sector investment to the identified development challenge. The vehicle must have a primary focus on at least one of the following: 1) climate finance 2) gender equality 
- __Geographic Eligibility__ - The target region for the blended finance vehicle must be one or more of the following "Eligible Countries" in the Indo-Pacific region:  Afghanistan, Bangladesh, Cambodia, Indonesia, Laos, Mongolia, Myanmar, Nepal, Pacific Nations (Cook Islands, Federated States of Micronesia, Fiji, Kiribati, Nauru, Niue, Papua New Guinea, Republic of Palau, Republic of the Marshall Islands, Samoa, Solomon Islands, Tokelau, Tonga, Tuvalu and Vanuatu), Pakistan, Philippines, Timor-Leste, Vietnam and Sri Lanka. The proposal will be eligible for funding only if at least 80% of the target region consists of one or more of the Eligible Countries. 
- __Use of Funds__ - Practitioners can only use the awarded grant funding for the design and launch of the blended finance vehicle – not for investment capital or to fund operational activities of an already established vehicle. See [grant portfolio](https://www.convergence.finance/design-funding/grant-portfolio "Grant Portfolio") for examples of previous grants made by Convergence.
- __Proposal Format__ - The proposal _must adhere to the applicable proposal template_, detailing the development challenge, proposed blended finance vehicle, key risks and mitigation strategies, design activities and costs, and the applicant's relevant experience.
  - [__Feasibility study proposals__](https://assets.ctfassets.net/4cgqlwde6qy0/48ki0G6M9IW7vba6HHRG59/5b1b364a2c3df2289e95c53a9a09fd77/Proposal_Template_for_Feasibility_Study_Indo-Pacific_Design_Funding_Window.docx) must 1) include an initial vehicle structure and investment thesis, and 2) have initiated engagement with potential funders and relevant stakeholders.
  - [__Proof of concept proposals__](https://assets.ctfassets.net/4cgqlwde6qy0/6ZL3iznvTeheT35yD7iseK/498b7fea3c31932191df90cd74a8f580/Proposal_Template_for_Proof_of_Concept_Indo-Pacific_Design_Funding_Window.docx) must 1) detail interest and ideally commitment to participate, from funders and relevant stakeholders, and 2) include an initial financial model.
- __Type of Grant__ - Convergence aims to select the strongest proposals based on the eligibility and evaluation criteria. _Convergence does not prioritize repayable grants and selection of proposals will not be based on whether a grant is repayable or not_. If a grant is structured as repayable, the terms of repayment will be determined on a case-by-case basis with the grantee. Repayment is often contingent upon the launch of the proposed blended finance solution.
- __Application Requirements__ - Proposals are only accepted from organizations or consortiums of organizations. The lead organization must be able to provide 1) proof of incorporation, and 2) financial statements for the previous fiscal year.
- __Reporting__ - Practitioners awarded funding are expected to regularly report key challenges, learnings, and results. This will be synthesized into a [case study](https://www.convergence.finance/resource/2Pj91GkMpWc9hdmqWSxwm3/view) or learning brief and published to support market-wide learning.

---

## Evaluation Criteria
Proposals will be evaluated on the following criteria:

- __Scalability and/or replicability:__ How much private capital does the vehicle aim to catalyze? If the vehicle is successful, can other practitioners use a similar approach?
- __Demonstration effect:__ Is the vehicle testing a never-before-tested design? Is the vehicle replicating an existing approach in a new market? Has the need for using a blended finance vehicle been demonstrated? Is the vehicle attracting partners such as institutional investors that have not participated in the blended finance space before?
- __Development Impact:__ What is the intended social, economic, or environmental impact of the vehicle? Who will be the ultimate beneficiaries of the vehicle and how will they benefit?
- __Gender considerations:__ How will gender considerations be incorporated into the vehicle’s design and operations? What will be the gender impact of the vehicle? 
- __Additionality:__ Does the vehicle aim to deploy financial instruments that are under-supplied and will therefore catalyze financing with a high degree of additionality? Does the vehicle have strong potential to address a market failure in the short term, and catalyze broader market financing in the long term?
- __Stakeholder support:__ Does the vehicle have the support of key stakeholders in the target region / country (e.g., government)? 
- __Likelihood to achieve financial close:__ Is the structure of the vehicle bankable/investable? Is the vehicle likely to attract investors and close within the short or medium term? Have investors been actively involved in the design of the vehicle? 
- __Response to Covid-19:__ How does the vehicle respond to Covid-19? How does the vehicle address economic reconstruction & resiliency in the medium term?

---

## Application Process

Our application process has three distinct stages:
- Stage 1: Application questionnaire, proposal submission, and initial shortlisting
- Stage 2: Detailed due diligence to shortlist proposals for Funding Committee review
- Stage 3: Compliance review and approval by Convergence’s Board of Directors

__Further details are provided below.__ 

Stage 1: Proposal Submission and Shortlisting
- Applicants are required to submit a proposal to the Indo-Pacific Design Funding Window using either the [feasibility study](https://assets.ctfassets.net/4cgqlwde6qy0/48ki0G6M9IW7vba6HHRG59/5b1b364a2c3df2289e95c53a9a09fd77/Proposal_Template_for_Feasibility_Study_Indo-Pacific_Design_Funding_Window.docx "Convergence Feasibility Study Template") or [proof of concept](https://assets.ctfassets.net/4cgqlwde6qy0/6ZL3iznvTeheT35yD7iseK/498b7fea3c31932191df90cd74a8f580/Proposal_Template_for_Proof_of_Concept_Indo-Pacific_Design_Funding_Window.docx "Convergence Proof of Concept Template") template. Convergence reviews proposals according to eligibility and evaluation criteria and shortlists the most promising proposals.

Stage 2: Due Diligence & Funding Committee
- If shortlisted, applicants will be asked to respond to due diligence questions from Convergence, and if required, provide additional information. Based on the proposals and supplementary information provided, Convergence selects the strongest proposals to present to Convergence’s Funding Committee. The Funding Committee, composed of independent experts, assesses shortlisted proposals and recommends proposals for funding. 

Stage 3: Compliance & Board Approval
- Following a recommendation from the Funding Committee, selected applicants will undergo a compliance review. Following this review, proposals are presented to Convergence’s Board of Directors for final approval.

---

## Application Submission Instructions

__Please read through the following steps carefully before submitting an application:__

-	__Step 1:__  Before drafting an application, fill out the [design funding questionnaire](https://www.convergence.finance/design-funding/open-window/application "Design Funding Questionnaire") on our website.

-	__Step 2:__ Following submission of a questionnaire, email [design.funding@convergence.finance](mailto:design.funding@convergence.finance "Design Funding Email") to schedule a brief call with the Convergence team to ensure alignment of objectives and mission. If available, please attach a concept note or presentation to the email. 

-	__Step 3:__ After speaking to the Convergence team, applicants are encouraged to send a draft proposal to [design.funding@convergence.finance](mailto:design.funding@convergence.finance "Design Funding Email") at least 2 weeks before the application submission deadline. Feedback will be provided within 7 business days. Draft proposals must use the standard [feasibility study](https://assets.ctfassets.net/4cgqlwde6qy0/48ki0G6M9IW7vba6HHRG59/5b1b364a2c3df2289e95c53a9a09fd77/Proposal_Template_for_Feasibility_Study_Indo-Pacific_Design_Funding_Window.docx "Convergence Feasibility Study Template") or [proof of concept](https://assets.ctfassets.net/4cgqlwde6qy0/6ZL3iznvTeheT35yD7iseK/498b7fea3c31932191df90cd74a8f580/Proposal_Template_for_Proof_of_Concept_Indo-Pacific_Design_Funding_Window.docx "Convergence Proof of Concept Template") template provided, unique to each Design Funding Window.

-	__Step 4:__ Submit the final proposal by following the link provided to you via email.

Please note that Convergence will only consider one application per organization per round. Convergence is unable to provide detailed feedback on applications that are not shortlisted for funding.

---

## Application Submission Deadlines
Applications to the Indo-Pacific Design Funding Window will be considered on a rolling basis.

*The next submission deadline is to be confirmed. Please visit this page for updates. *


Proposal Template for Feasibility Study Indo-Pacific Design Funding Window

Proposal Template for Proof of Concept Indo-Pacific Design Funding Window

The Indo-Pacific Design Funding Window provided grant funding for the design and launch of catalytic blended finance solutions focused on climate finance and gender equality in certain countries in the Indo-Pacific region. This Window was funded by the Australian Government. It is closed and is not accepting applications.

Design of a blended investment platform for renewable energy projects in Nepal

Convergence awarded a proof-of-concept grant to Mirova SunFunder Inc for the design and launch of the Gigaton Empowerment Fund - a $500 million blended fund that will target investments in distributed energy and off grid projects in emerging markets, while applying a gender lens across several levels, including across the firm, investment lifecycle, investees, and in its supply chain. 

Currently, over [750 million people](https://www.seforall.org/news/five-takeaways-from-tracking-sdg7-the-energy-progress-report-2021#:~:text=According%20to%20Tracking%20SDG7%2C%20the,2019%20there%20were%20759%20million. "Five takeaways from Tracking SDG7: The Energy Progress Report 2021") globally have no access to electricity. This means that millions of families lack the foundation for social and economic development, remaining reliant on toxic and dangerous kerosene for lighting, while local businesses experience frequent power cuts and are unable to expand. Women are also disproportionately affected by poor access to electricity, as they often manage the day-to-day challenges of maintaining a household.  As a result, many of the Fund’s impacts will directly benefit women. 

The market for providing debt financing for energy access is still small and is primarily focused on just a few segments of the market. The Design Funding grant from Convergence will enable Mirova SunFunder to design a scalable blended finance vehicle with a strong gender-lens focus that will target both established and frontier segments in distributed energy/off-grid sub-sectors, such as commercial and industrial, telecom, solar home systems, agri-solar, mini-grids and e-mobility. Gigaton will target both middle-income countries and low-income and least developed countries where its impact would be most significant (e.g., Democratic Republic of the Congo, Malawi, Sierra Leone, Myanmar etc.). 

The Fund will build on its track record in distributed solar investments in Sub-Saharan Africa. The team has experience managing multiple blended funds focused on off-grid solar in Sub-Saharan Africa to date. However, this financing has been on a small scale so far and the Gigaton Empowerment Fund is among the first attempts to tackle these challenges on a much larger scale. Besides the scale of the vehicle, the Fund will seek an investment grade credit rating within the scope of Convergence’s grant funding. 

__Design question and learning potential for the market:__ *How can climate investments be scaled up for distributed clean energy transition in underserved markets while maintaining a gender-lens investing approach?*
During the proof-of-concept phase, the Mirova SunFunder team will be pursuing ambitious design activities such as obtaining a credit rating for the Gigaton Empowerment Fund. This is notable because there is no precedent for conducting a rating exercise for a blended debt fund and the team’s efforts will lay the groundwork for other blended debt funds also receiving credit ratings. A credit rating would also attract investments from institutional investors towards blended finance solutions in emerging markets.

Another significant activity in the proof-of-concept stage is the strengthening of the Fund’s gender-lens investing approach. The Mirova SunFunder team will be redesigning their gender investing strategy, processes, and methodologies to successfully qualify the Fund for all five criteria under the 2X Challenge and to position Gigaton as a leading gender-lens investing vehicle.

Design of Gigaton Empowerment Fund

A partnership between Convergence and Climate Policy Initiative (CPI) focused on scaling sustainable climate finance.

Gates Foundation Logo

Bill & Melinda Gates Foundation

Global Affairs Canada

DFAT Logo Hi-res

Australian Department of Foreign Affairs and Trade

The Catalytic Climate Finance Facility (CC Facility) is a partnership between Climate Policy Initiative (CPI) and Convergence focused on scaling sustainable climate finance by providing grant funding and dedicated acceleration services to early-stage and market-ready financial solutions in sectors that are severely under-financed in developing countries.

Design Funding

RSgroup

RS Group

*The application deadline for the Window is September 30, 2022.* 

The Asia Natural Capital Design Funding Window provides grant funding for the design and launch of catalytic blended finance solutions focused on natural capital in Asia. This Window is funded by the [RS Group](http://www.rsgroup.asia/ "RS Group Website"), a family office based in Hong Kong.

This Window will support blended finance solutions that find new ways to enhance and protect the world's stock of natural assets, including water, land, soil, air, plants and animals, by attracting private investment at scale. For example, solutions could be aimed at:

- Protecting biodiversity
- Reducing ecosystem degradation (e.g. deforestation)
- Mitigating and adapting to climate change
- Reducing unsustainable use of land and oceans 
- Restoring and rehabilitating impaired terrestrial, coastal and aquatic ecosystems

...while providing a fair and sustainable living to local communities.

Please refer to the [Factsheet](https://assets.ctfassets.net/4cgqlwde6qy0/2fAif1fxOzJ0yszbFQIdTR/8f9bba93376aa10588434cbd4f614f1d/Asia_Natural_Capital_Design_Funding_Factsheet.pdf) on the Asia Natural Capital Design Funding Window for more information

---

## Types of Applications
Practitioners can apply for feasibility study or proof of concept funding:

- __Feasibility study:__ Funding to explore the feasibility of the vehicle. For example, assessing the investability/bankability of the transaction, conducting market scoping and developing the vehicle structure.  Convergence will award __grants__ between $50,000 and $200,000 for feasibility studies. Promising feasibility studies funded through the Design Funding Window will be considered for follow-on proof of concept funding.
- __Proof of concept:__ If a feasibility study (or equivalent) has been completed, funding to complete all design and structuring activities to launch the vehicle. For example, finalizing the capital structure and financial model, establishing the legal structure, and producing key documents.  Convergence will award __repayable grants__ between $200,000 and $500,000 for proof of concept work. Determination of whether a grant is repayable will be made on a case-by-case basis.
---

## Eligibility Criteria
To be eligible for consideration for the Asia Natural Capital Design Funding Window, proposals must meet the following criteria:

- The proposal must be for a __blended finance vehicle__. The vehicle must aim to use catalytic capital from public or philanthropic sources to attract private sector investment to the identified development challenge.
- The vehicle must __focus on the natural capital sector__.
- The __target region__ for the blended finance vehicle must be in __Asia__. Preference would be given to proposals targeting Southeast Asia. Practitioners should have on the ground presence or partnerships in Asia.
- Practitioners __can only use the awarded grant funding for the design and launch of the blended finance vehicle__ – not for investment capital or to fund operational activities of an already established vehicle. See [grant portfolio](https://www.convergence.finance/design-funding/grant-portfolio "Grant Portfolio") for examples of previous grants made by Convergence.
- The __proposal must adhere to the applicable proposal template__, detailing the development challenge, proposed blended finance vehicle, key risks and mitigation strategies, design activities and costs, and the applicant's relevant experience.
  - [__Feasibility study proposals__](https://assets.ctfassets.net/4cgqlwde6qy0/21d74dIpc0SttdLxJ32REl/0bd2dd841c2da2c5b0af9d918bbfde4d/Convergence_Template_Feasibility_Study_Asia_Natural_Capital_Window__Final_.docx) must 1) include an initial vehicle structure and investment thesis, and 2) have initiated engagement with potential funders and relevant stakeholders.
  - [__Proof of concept proposals__](https://assets.ctfassets.net/4cgqlwde6qy0/6SgUlDodejwJgMwUGlh951/5868c953a70ebbf0e775531a30486705/Convergence_Template_Proof_of_Concept_Asia_Natural_Capital_Window__Final_.docx) must 1) detail interest and ideally commitment to participate, from funders and relevant stakeholders, and 2) include an initial financial model.
- Convergence aims to select the strongest proposals based on the eligibility and evaluation criteria. __Convergence does not prioritize repayable grants and selection of proposals will not be based on whether a grant is repayable or not__. If a grant is structured as repayable, the terms of repayment will be determined on a case-by-case basis with the grantee. Repayment is often contingent upon the launch of the proposed blended finance solution.
- Proposals are only accepted from __organizations or consortiums of organizations__. The lead organization must be able to provide 1) proof of incorporation, and 2) financial statements for the previous fiscal year.
- Practitioners awarded funding are expected to __regularly report key challenges, learnings, and results__. This will be synthesized into a case study or learning brief and published to support market-wide learning.

---

## Evaluation Criteria
Proposals will be evaluated on the following criteria:

- __Scalability and/or replicability:__ How much private capital does the vehicle aim to catalyze? If the vehicle is successful, can other practitioners use a similar approach? Will the vehicle contribute to creating a pipeline of investable deals/projects in natural capital in Asia?
- __Demonstration effect:__ Is the vehicle testing a new design? Is the vehicle replicating an existing approach in a new market? Is the vehicle attracting partners that have not participated in the blended finance space before?
- __Impact:__ Does the vehicle propose to drive a significant amount of natural capital impact? Will the vehicle have a measurable impact on an ecosystem? How will environmental impact and risk be measured and will it have a scientific basis? Are there other social, economic, or environmental impacts of the vehicle? 
- __Additionality:__ Does the vehicle aim to deploy financial instruments that are under-supplied and will therefore catalyze financing with a high degree of additionality? Does the vehicle have strong potential to address a market failure in the short term, and catalyze broader market financing in the long term?
- __Stakeholder support:__ Does the vehicle have the support of key stakeholders in the target region / country (e.g., government)?
- __Likelihood to achieve financial close:__ Is the vehicle likely to attract investors and close within the short or medium term?
- __Contributions to portfolio and development risk-return:__ Does the vehicle represent a strong development risk-return (i.e., high risk vehicles should have the potential to achieve significant natural capital impact)?
- __Field Building:__ Does the vehicle contribute to field building? Does is it contribute to building local capacity and strengthening breadth and depth of local markets and communities? Does the applicant have a strong local presence in Asia? 

---

## Application Process

Our application process has three distinct stages:
- Stage 1: Application questionnaire, proposal submission, and initial shortlisting
- Stage 2: Detailed due diligence to shortlist proposals for Funding Committee review
- Stage 3: Compliance review and approval by Convergence’s Board of Directors

__Further details are provided below.__ 

Stage 1: Proposal Submission and Shortlisting
- Applicants are required to submit a proposal to the Asia Natural Capital Design Funding Window using either the [feasibility study](https://assets.ctfassets.net/4cgqlwde6qy0/21d74dIpc0SttdLxJ32REl/0bd2dd841c2da2c5b0af9d918bbfde4d/Convergence_Template_Feasibility_Study_Asia_Natural_Capital_Window__Final_.docx "Convergence Feasibility Study Template") or [proof of concept](https://assets.ctfassets.net/4cgqlwde6qy0/6SgUlDodejwJgMwUGlh951/5868c953a70ebbf0e775531a30486705/Convergence_Template_Proof_of_Concept_Asia_Natural_Capital_Window__Final_.docx "Convergence Proof of Concept Template") template. Convergence reviews proposals according to eligibility and evaluation criteria and shortlists the most promising proposals.

Stage 2: Due Diligence & Funding Committee
- If shortlisted, applicants will be asked to respond to due diligence questions from Convergence, and if required, provide additional information. Based on the proposals and supplementary information provided, Convergence selects the strongest proposals to present to Convergence’s Funding Committee. The Funding Committee, composed of independent experts, assesses shortlisted proposals and recommends proposals for funding. 

Stage 3: Compliance & Board Approval
- Following a recommendation from the Funding Committee, selected applicants will undergo a compliance review. Following this review, proposals are presented to Convergence’s Board of Directors for final approval.

---

## Application Submission Instructions

__Please read through the following steps carefully before submitting an application:__

-	__Step 1:__  To start an application, fill out our questionnaire and submit a concept note in the [Application Portal](https://designfunding.convergence.finance/en/ "Convergence Design Funding Portal").

-	__Step 2 (Optional):__ Submit the draft application atleast two weeks before the application deadline, if you would like feedback from the Convergence team.

-	__Step 3:__ Submit the final proposal by the deadline.**

All proposals will follow the [feasibility study](https://assets.ctfassets.net/4cgqlwde6qy0/21d74dIpc0SttdLxJ32REl/0bd2dd841c2da2c5b0af9d918bbfde4d/Convergence_Template_Feasibility_Study_Asia_Natural_Capital_Window__Final_.docx "Convergence Feasibility Study Template") or [proof of concept](https://assets.ctfassets.net/4cgqlwde6qy0/6SgUlDodejwJgMwUGlh951/5868c953a70ebbf0e775531a30486705/Convergence_Template_Proof_of_Concept_Asia_Natural_Capital_Window__Final_.docx "Convergence Proof of Concept Template") template provided, unique to each Design Funding Window.

* Convergence staff may reach out to your team for a brief call to ensure alignment with the window if necesssary.

** An applicant can directly submit the final proposal without completing Step 2.

Please note that Convergence will only consider one application per organization per round. Convergence is unable to provide detailed feedback on applications that are not shortlisted for funding.

---

## Application Submission Deadlines
Applications to the Asia Natural Capital Design Funding Window will be considered on a rolling basis. The next application deadline is September 30, 2022. 


Convergence Template Feasibility Study Asia Natural Capital Window

Convergence Template Proof of Concept Asia Natural Capital Window

The Asia Natural Capital Design Funding Window provided grant funding for the design and launch of catalytic blended finance solutions focused on natural capital in Asia. This Window was funded thanks to the support of the RS Group, a family office based in Asia. It is closed and no longer accepting applications.

1280px-Monetary Authority of Singapore.svg

Monetary Authority of Singapore

UBS optimus colour

UBS Optimus Foundation

Olayan-logo transparent

Olayan Group

__The ACS Design Grant is currently accepting Concept Notes. The next application deadline is February 12, 2024.__ Upon submission, Convergence will review all concept notes and invite select applicants to submit a full proposal for funding consideration.

## Scope of the Design Funding Window

The Asia Climate Solutions (ACS) Design Grant awards grant funding for the design and launch of innovative blended finance solutions that mobilize private capital to sectors critical for climate transition and resilience in developing markets in Asia. The ACS Design Grant aims to demonstrate the potential of funding from family offices, foundations, and donor agencies to catalyze blended finance solutions addressing the climate finance gap, at scale. The anchor donors of this initiative are the Monetary Authority of Singapore, the Department of Foreign Affairs and Trade Australia, Olayan Group, and UBS Optimus Foundation. 

The ACS Design Grant will target critical climate mitigation and adaptation sectors in Asia including nature-based solutions (NbS), clean energy transition, and sustainable cities and infrastructure. It will provide feasibility study and proof of concept grants for innovative solutions using blended capital structures to crowd-in climate-smart investment in the region.

## Types of Funding Available

Applicants can apply for feasibility study or proof-of-concept funding.

### Feasibility Study Grant

Feasibility study applications must be able to 1) present a viable investment thesis, and an initial capital structure and 2) demonstrate early engagement with potential investors and relevant stakeholders.

- Grants range between USD 50,000 to USD 200,000.
- Funding to explore the feasibility of the concept. For example, a combination of the following activities would be eligible:
  - Assessing the investability/bankability of the concept
  - Conducting market scoping and stakeholder consultations
  - Conducting an impact analysis including climate and gender impact potential
  - Designing the capital and legal structure
- Promising feasibility studies funded through this window may be considered for follow-on proof-of-concept funding.

### Proof-of-Concept Grant

Proof-of-concept applications will be expected to present 1) interest and ideally commitment from investors and relevant stakeholders to support the concept, and 2) a financial model.

- Grants range between USD 200,000 to USD 400,000.
- If a feasibility study (or equivalent) has been completed, then funding would be provided to complete all design and structuring activities to launch. 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
  - Development of an impact assessment framework and gender action plan (or equivalent) based on the impact analysis from prior feasibility work.

## Eligibility Criteria

Proposals must meet the following eligibility criteria:
- Purpose:
  - Proposals articulate a clear need for grant support for the design and/or launch of an innovative blended finance solution.
  - Solutions must target climate change mitigation and/or adaptation.
- 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.
- Sectors: Proposals target one or more of the following sector(s) and sub-sector(s): 
  - Nature-based Solutions (NbS) 
    - Sustainable forestry and climate-smart land use / adaptation
    - Sustainable agriculture and agroforestry
    - Climate-related insurance and disaster resilience
    - Natural resource management, directly linked to preserving and protecting natural assets, such as:
      - Sustainable fisheries and aquaculture
      - Sustainable forestry
      - Forest and blue carbon
      - Coastal protection
      - Eco-tourism
- 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
- Applicant: Proposals will only be 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 private enterprises. The lead organization must be able to provide 1) proof of incorporation, and 2) financial statements for the previous fiscal year.

## Evaluation Criteria

All applications received will be scored on a scale of 0-100 depending on the stage of the solution.

|      | Maximum Available scores     |  | 
| ---------- | ---------- | ---------- | 
| Criteria       | Feasibility Study | Proof of concept |
|__Development impact__<ul><li>How will climate mitigation or adaptation be incorporated into the concept’s design and operations?</li><li>What will be the environmental and socioeconomic impact of the concept?</li><li>How will gender equality be incorporated into the concept’s design and operations?</li><li>What indicators will be used to measure progress and impact outcomes?</li></ul>| 19 | 19 |
|__Scalability and/or replicability__<ul><li>How much private capital does the concept aim to catalyze?</li><li>If the concept is successful, can other practitioners use a similar approach? Will the concept contribute to creating a pipeline of investable climate finance solutions in emerging markets?</li></ul>| 19 | 19 |
|__Additionality__<ul><li>Does the concept aim to deploy financial instruments that are under-supplied, and will therefore catalyze financing with a high degree of additionality?</li><li>Does the concept have strong potential to address a market failure in the short term, and catalyze broader market financing in the long term?</li><li>To what extent will the design grant be catalytic in achieving the targeted development impact?</li></ul>| 17 | 17 |
|__Innovation & Demonstration Effect__<ul><li>Is the concept testing a never-before-tested design?</li><li>Is the concept replicating an existing approach in a new market?</li><li>Does the concept demonstrate the rationale and business case for using blended finance for climate adaptation and/or mitigation?</li></ul>| 17 | 13 |
|__Likelihood to achieve financial close__<ul><li>Is the structure proposed in the concept bankable/investable?</li><li>Is the concept likely to attract private investors and close within the short or medium term?</li><li>Have investors been actively involved in the design of the concept to date?</li></ul>| 9 | 12 |
| __Track record of applicant__<ul><li>Does the applicant have the relevant expertise, track record, and capacity required to succeed?</li></ul>| 12 | 12 |
| __Stakeholder Support__<ul><li>	Does the concept have the support and buy-in of key stakeholders in the target region/country (e.g., government, prospective investors, partners)?</li></ul>| 7 | 8 |
| __Total__ | 100 | 100 |

## Application Process

*Stage 1: Submission of concept notes*

- Interested applicants can initiate the application process by logging in to [https://designfunding.convergence.finance/en/](https://designfunding.convergence.finance/en/)
- The next application deadline is __February 12, 2024__.
- Follow the instructions provided to submit a concept note and supplemental materials (e.g., pitch deck) by the deadline date.
- Applicants may submit one application per funding cycle. 
- Convergence reviews the concept notes and supporting materials to i) screen for eligibility and ii) based on the evaluation criteria, select a longlist of concept notes to proceed to Stage 2.
- Unsuccessful applicants are notified. Due to the high volume of applications expected, we regret that at this stage we are unable to provide feedback on unsuccessful applications.

*Stage 2: Submission of full proposals*

- Longlisted applicants are invited to submit a full proposal for funding consideration.
- Follow the instructions provided to submit a full proposal by the deadline date.
- Convergence reviews full proposals according to the evaluation criteria and shortlists proposals. Convergence may request additional information as necessary.
- Convergence conducts technical due diligence on shortlisted proposals. Shortlisted applicants are asked to respond to due diligence questions from Convergence and are requested to make introductions to key stakeholders for interviews as part of the due diligence process.
- Unsuccessful applicants are notified. Due to the high volume of applications expected, we regret that at this stage we are unable to provide feedback on unsuccessful applications.

*Investment Committee review and approval*

- Shortlisted proposals that pass due diligence are recommended by Convergence to the Investment Committee for approval.
- The Investment Committee is composed of independent experts who recommend proposals to the Convergence Board of Directors for funding.
- Shortlisted applicants that do not pass due diligence are notified. Convergence at its discretion maybe available for a call to provide high-level feedback to a subset of the highest scoring shortlisted proposals.

*Convergence performs compliance review and seeks final approval from Convergence’s Board of Directors*

- Proposals approved by the Investment Committee undergo a compliance review led by Convergence’s Chief Financial Officer.
- Following the compliance review, cleared proposals are recommended to Convergence's Board of Directors for final approval.
- Shortlisted applicants that are not selected for funding at this stage are notified. Convergence at its discretion maybe available for a call to provide high-level feedback to a subset of the highest scoring shortlisted proposals.

*Contracting*

- Following Board approval, Convergence initiates the contracting stage with the selected awardees.
- Convergence will execute contracts with the selected awardees that includes the design activities and key milestones agreed upon with the awardees.

The Asia Climate Solutions (ACS) Design Grant will provide early-stage grants for high-impact climate financing solutions in emerging markets in Asia. The Grant aims to mobilize private capital at scale into high-impact target sectors across climate mitigation and adaptation. 

Concept note submission for Cycle 2 of the Asia Climate Solutions Design Grant is now open.

The Global Emerging Markets Design Funding Window provided grant funding for the design and launch of catalytic blended finance solutions across emerging markets. This Window was funded by Global Affairs Canada. It is closed and no longer accepting applications.

This competition aimed to identify and award successful existing student financing solutions to: 1.) help more young people enter tertiary education, 2.) drive improved education outcomes, and 3.) increase youth employment. | (French) Ce concours a identifié les solutions de financement d’études existantes qui peuvent aider davantage de jeunes à entrer dans l’enseignement supérieur et ainsi améliorer les résultats en matière d’éducation ainsi que l’augmentation de l’emploi des jeunes. | (Spanish) Este premio identifié soluciones exitosas de financiamión de estudiantes existentes que pueden ayudar a más jóvenes a ingresar a la educación terciaria y, por lo tanto, impulsar mejores resultados educativos, así como un mayor empleo juvenil. 

SIFI logo

SDG Impact Finance Initiative

## Background

Following the success of of the initial calls for proposals in 2022 and 2023, the [SDG Impact Finance Initiative](https://www.sdgimpactfinance.org/) (“the Initiative”) will announce a third call for proposals in 2024 targeting a new set of UN Sustainable Development Goals (SDGs). The SDG Impact Finance Initiative’s Innovation Window awards grants for innovative impact finance solutions that will mobilize private capital for sustainable development in emerging and frontier markets. The Initiative is funded by the [State Secretariat for Economic Affairs](https://www.seco-cooperation.admin.ch/) (SECO), the [Swiss Development Cooperation Agency](https://www.eda.admin.ch/) (SDC), the [UBS Optimus Foundation](https://www.ubs.com/global/en/ubs-society/philanthropy/optimus-foundation.html), and the [Credit Suisse Foundation](https://www.credit-suisse.com/about-us/en/our-company/corporate-responsibility/economy-society/financial-inclusion.html).

The SDG Impact Finance Initiative aims to accelerate advancements in the impact investing market by supporting the launch of innovative solutions that address market failures, deploy financial products that are under-supplied or supplied at insufficient volumes, and mobilize funding into new sectors and regions.

It aims to achieve three key objectives:
- Support the design and development of innovative impact finance solutions;
- Scale impact investing solutions by mobilizing private capital at scale; and
- Strengthen the impact investing ecosystem, improve overall frameworks, and promote quality impact management practices to enhance impact investment flows. 

Under the calls for proposals, with support from Convergence, the Initiative will award grant funding for feasibility studies, proof of concept activities and expansion of existing solutions.

***

## Key highlights of the call for proposals
- __Funding types__: Both grants and conditionally repayable grants will be awarded to support the design, launch or scaling of solutions. Conditionally repayable grants and their repayment terms will be considered for Proof of Concept and Expansion applications on a case-by-case basis. Repayment is expected only if the solution successfully launches and meets key milestones such as financial close. See “Which type of grant should I apply for?” for additional details.  
- __Geographical focus__: Solutions can target any developing country or countries eligible to receive official development assistance (ODA) according to the [OECD-DAC List of ODA Recipients](https://www.oecd.org/dac/financing-sustainable-development/development-finance-standards/DAC-List-of-ODA-Recipients-for-reporting-2022-23-flows.pdf). We highly encourage solutions that target low-income and least developed countries.
- __Developing country applicants and partnerships:__ We highly encourage applications that fall into any of these categories:
  - Applications from __local__ organizations based in developing countries
  - Applications from a __consortium__ of organizations from both developing and developed countries
  - Applications that strongly focus on __building long-term partnerships__ with developing country actors

SDG Impact Finance Initiative - Design Funding - Expansion Template (FINAL)

SDG Impact Finance Initiative - Design Funding - Proof of Concept Template (FINAL)

SDG Impact Finance Initiative - Design Funding - Feasibility Study Template (FINAL)

The SDG Impact Finance Initiative Design Funding awards grants for innovative impact finance solutions that will mobilize private capital for sustainable development in emerging and frontier markets. The upcoming cycle will seek solutions aligned with select U.N. Sustainable Development Goals (SDGs).
 
The Initiative begins accepting Concept Notes again in early 2024 for its next funding cycle. Please return to this site for additional details once available. Upon submission, Convergence will review all Concept Notes and invite select applicants to submit a full proposal for funding consideration.

Design Funding

Convergence offers a unique market acceleration opportunity for practitioners to secure feasibility study and proof of concept stage grants to develop and launch catalytic blended finance vehicles that aim to attract private capital to sustainable development at scale.

Portfolio Summary

Grant Portfolio