We have extended the deadline for concept notes to May 8, 2023 (extended from May 1). Concept notes will be reviewed as they're received and applicants will be notified of a decision shortly after, thus early submissions before May 8 are highly encouraged. Based on this decision, Convergence will invite applicants to submit a full proposal for funding consideration. Full proposals will be due by June 18, 2023 (extended from May 19).
To learn more or apply:
- March 2023 information session: view recording | download slides
- Review our FAQ
- Start your application
Background
Following the success of the first call for proposals in 2022, the SDG Impact Finance Initiative (“the Initiative”) has announced a second call for proposals 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 (SECO), the Swiss Development Cooperation Agency (SDC), the UBS Optimus Foundation, and the Credit Suisse Foundation.
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 this second call for proposals, with support from Convergence, the Initiative will award grant funding for feasibility studies, proof of concept activities and expansion of existing solutions. Proposed solutions should target one or more of SDG 5 (Gender Equality), SDG 14 (Life Below Water), and SDG 15 (Life on Land).
Key highlights of the call for proposals
- Application period & available funding: Concept notes will be accepted and reviewed on an ongoing basis until May 8, 2023. Full proposals (invite-only) will be due on June 18, 2023. Up to USD 2 million in total will be awarded to support 5-8 solutions. Finalists are expected to be announced at Building Bridges in October 2023. Winners are expected to be finalized and announced by the end of 2023.
- 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.
- Thematic focus: This second call for proposals is seeking solutions targeting any one of the below SDGs. No preference will be given to solutions that target multiple SDGs.
- SDG 5 (Gender equality): Achieve gender equality and empower all women and girls
- Solutions targeting the nexus of economic empowerment and gender equality. Solutions should contribute to improving economic opportunities for women and girls through areas such as:
- Financial inclusion;
- Unpaid care work;
- Education (basic education, vocational skills development and lifelong learning, tertiary education).
- Solutions targeting the nexus of economic empowerment and gender equality. Solutions should contribute to improving economic opportunities for women and girls through areas such as:
- SDG 14 (Life below water): Sustainably use the oceans, seas, and marine resources for sustainable development
- Solutions can target any areas aligned with SDG 14, including:
- Protection, or restoration of marine and coastal ecosystems;
- Sustainable management of fisheries, aquaculture and tourism and increased benefits to local communities (e.g., Small Island Developing States);
- Reduction in marine pollution;
- Financial services and market access for small scale fisheries.
- Solutions can target any areas aligned with SDG 14, including:
- SDG 15 (Life on land): Protect, restore, manage and promote sustainable use of terrestrial ecosystems, forests and land, combat desertification, and halt and reverse land degradation and biodiversity loss
- Solutions can target any areas aligned with SDG 15, including:
- Protection, sustainable management and/or restoration of terrestrial and inland freshwater ecosystems (e.g., forests, wetlands, mountains, drylands), including their biodiversity;
- Sustainable management of forests (afforestation, reforestation);
- Mitigation of land degradation and sustainable management of land;
- Reduction of poaching and trafficking of protected wildlife.
- Solutions can target any areas aligned with SDG 15, including:
- SDG 5 (Gender equality): Achieve gender equality and empower all women and girls
- 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. We highly encourage solutions that target low-income and least developed countries.
- Demonstrated potential to benefit predominantly children: We highly encourage applications that can demonstrate direct benefits to children and adolescents. Up to USD 500,000 out of the total USD 2 million of available funding are earmarked for this purpose.
- 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
Which type of grant should I apply for?
Applicants can apply for Feasibility, Proof of Concept, or Expansion funding depending on the stage of the proposed solution.
Pre-Launch | Pre-Launch | Post-launch (operational) |
---|---|---|
Feasibility study | Proof of concept | Expansion |
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Evaluation criteria
All applications received will be scored on a scale of 0-100 depending on the stage of the solution. We regret that we are unable to provide feedback on applications.
Maximum Available scores | |||
---|---|---|---|
Criteria | Feasibility Study | Proof of concept | Expansion |
Development impact
| 18 | 18 | 18 |
Additionality
| 17 | 17 | 17 |
Scale of private capital mobilization
| 14 | 14 | 14 |
Pioneering innovation
| 18 | 15 | 13 |
Developing country partnerships
| 8 | 9 | 10 |
Likelihood of successful fundraise
| 10 | 12 | 13 |
Track record of applicant
| 10 | 10 | 10 |
Financial sustainability
| 5 | 5 | 5 |
Total | 100 | 100 | 100 |
Application and review process
Stage 1: Concept note (accepting until May 8, 2023)
- Interested applicants can start their application on our portal. Stage 1 includes the completion of screening questions and the submission of a 4-page concept note (template available on the portal).
- All concept notes will be screened against the eligibility criteria (see below), and those that are eligible and will then reviewed against the evaluation criteria. Convergence will only contact applicants selected to submit a full proposal (Stage 2).
Stage 2: Full proposal (by invitation only - due June 18, 2023)
- Competitive concept notes will be invited to submit a full proposal. Those advancing to this stage receive instructions on how to download a full proposal template through the grant portal.
- Final proposals must be submitted to the grant portal by the June 18, 2023 deadline in order to be considered. No exceptions will be made.
Stage 3: Initial review and shortlisting
- All full proposals will be reviewed and assessed against the evaluation criteria by Convergence. Shortlisted proposals will be recommended by Convergence to the funding partners of the SDG Impact Finance Initiative for further consideration and due diligence.
Stage 4: Due diligence
- Shortlisted proposals will undergo two types of due diligence in parallel:
- Proposal-level: Convergence will request responses to detailed questions on the proposal, and introductions to key stakeholders for interviews.
- Applicant-level: Applicants will undergo a compliance review led by Convergence’s Chief Financial Officer.
Stage 5: Investment Committee
- Shortlisted proposals that satisfactorily clear due diligence will be recommended by Convergence to the Investment Committee.
- The Investment Committee is composed of independent experts who will recommend proposals to the SDG Impact Finance Initiative Executive Board for final approval.
Stage 6: SDG Impact Finance Initiative Executive Board
- Proposals recommended by the Investment Committee will be reviewed for final approval by the SDG Impact Finance Initiative Executive Board.
Stage 7: Contracting
- Following final approval from the SDG Impact Finance Initiative Executive Board, Convergence initiates the contracting stage with the selected awardees.
Eligibility criteria
Criteria | Description |
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Developing countries |
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SDGs |
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Impact finance solution |
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End beneficiaries in developing countries |
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Private capital mobilization |
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Type of applicants |
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Target size |
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Budget and ‘skin in the game’ |
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International ESG practices |
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Additional notes
- Multiple applications from the same organization are accepted if the proposed solutions are different.
- At this time, proposals must be submitted in English.
- Applicants can access frequently asked questions here and submit additional questions to [email protected].