Convergence, with funding from the German Ministry for Economic Cooperation and Development (BMZ), has launched the Scaling Blended Finance Climate Deals Initiative (DealScale) to improve market coordination, enable faster deal closing, and ultimately unlock large-scale private capital for climate investments in developing countries. The Green Climate Fund (GCF) is a partner to this initiative.
This project will test and refine standard institutional finance tools and coordination mechanisms for climate finance through a series of live pilot transactions that will be sourced from Convergence’s Market Data and live deal platform, the GCF-Board approved portfolio, development finance institutions, and other partners.
These transactions will serve as real-world case studies to inform and refine the initiative’s tools, approaches, and coordination mechanisms throughout implementation. Through engagement with investors, DFIs, and technical partners, the initiative will monitor and support the progression of the pilot transactions, generating technical insights to improve how climate blended finance deals are structured, brought to market, and ultimately reach financial close.
By advancing these pilot transactions and capturing practical lessons, the initiative aims to reduce barriers for institutional investors, improve efficiency, and support greater standardization across the market. The resulting tools developed may include templates, co-investment and governance agreement models, structuring frameworks, and operational guidance to be used by blended finance practitioners to facilitate deal execution, improve coordination among co-investors and accelerate the mobilization of private capital toward high-impact climate investments.
This initiative builds on Convergence’s ongoing work on standardization, including the Scale Private Mobilization Project, which identified 12 Private Investment Mobilization Models that have the most potential to standardize and scale SDG and climate investment in developing countries. Standardization cannot happen in the absence of a supportive enabling environment, so Convergence partnered with UNDP to develop the Strategic Framework for Blended Finance, which offers practical and actionable guidance to governments and policy makers to improve the enabling environment for blended finance at a country level.
Convergence is inviting the market to share potential pilot transactions, particularly those in structuring or fundraising stages, that could benefit from this initiative’s tools, coordination support, and applied learning approach.
To share potential pilot transactions or for more information, contact: Alicia Maitland, Associate Director, Training & Engagement: [email protected]
