Toronto, June 10, 2025 – Convergence announces the third cohort of its Asia Climate Solutions (ACS) Design Grant. Two innovative blended finance solutions targeting climate action with a focus on nature-based solutions (NbS) and mobilization of local capital in key Southeast Asian markets have been awarded proof-of-concept and feasibility study grants.
The ACS Design Grant supports pioneering blended finance solutions focused on critical climate mitigation and adaptation sectors in Asia including NbS, clean energy transition, and sustainable cities and infrastructure. The third call for proposals prioritized solutions mobilizing local public, private, and philanthropic capital to address climate vulnerabilities in Southeast Asia.
“These innovative solutions offer effective approaches to mobilize local capital in Southeast Asian markets,” says Convergence Senior Director, Blended Finance Accelerator, Leah Pedersen. “Working across key environmental sectors they will contribute to regional climate goals while supporting and uplifting local communities.”
The ACS program is supported by five anchor donors: the Monetary Authority of Singapore, Australia’s Department of Foreign Affairs and Trade, Olayan Group, UBS Optimus Foundation, and The Rockefeller Foundation. It aims to demonstrate how catalytic capital from family offices, foundations, and donor agencies can unlock scalable blended finance approaches to bridge the climate financing gap in Asia.
Introducing the Grantees
Palladium International LLC has been awarded a feasibility grant to design and structure The Nature Catalyst, a blended finance facility that aims to de-risk investments and bridge the financing gap for early-stage NbS across the capital continuum in Cambodia, Vietnam, the Philippines, and Laos. The Nature Catalyst targets the agriculture, forestry, and fisheries sectors where early-stage capital remains scarce. The facility will be structured as a dual mechanism: the Nature Catalyst Incubation Facility, which will provide performance-based grants and technical assistance to strengthen local pipeline developers and NbS projects; and the Nature Catalyst Fund, which will offer tailored financing instruments such as loans, revenue-based loans, NbS carbon, and convertible debt to support NbS enterprises. The solution aims to avoid 25 million metric tons of CO₂ emissions over the life of the project, restore 200,000 hectares of land, increase use of native species by 25%, and support endangered species. It also aims to create 50,000 climate-resilient livelihoods (50% women) and ensure that at least half of nature-positive revenues are retained by local communities.
The solution, implemented in partnership with Impact Earth and Capital Continuum Advisers, will mobilize local sources of capital by actively engaging with domestic corporates, family offices, and regional financial institutions as both pipeline partners and potential investors. Financial instruments will be tailored to local market needs, demonstrating viable NbS business models and attracting underutilized pools of capital from within Southeast Asia.
This grant will support the development of the fund’s capital and legal structure, governance and impact frameworks, financial modeling, due diligence processes, pipeline development, and investor engagement.
Conservation International has been awarded a proof-of-concept grant to design and launch the Climate Smart Shrimp Fund (CSSF), a revolving blended debt fund focused on modernizing shrimp farming, enhancing climate resilience, and restoring mangrove ecosystems in Indonesia. Building on successful pilot projects, the CSSF will work with local implementation partners to integrate shrimp farming with mangrove restoration across 3,400 hectares of land, restoring 1,500 hectares of mangroves. This effort will enhance coastal protection, support carbon sequestration, improve water quality, and unlock revenue from ecosystem services.
The solution will mobilize local sources of capital by targeting domestic financial institutions, family offices, and impact aligned investors, demonstrating the commercial viability of climate-resilient shrimp farming and mangrove restoration to build trust and attract long-term local capital for sustainable aquaculture projects.
This grant will be used to finalize the fund structure, refine the financial model, complete legal documentation, develop an impact measurement plan, prepare investor materials, build an investment pipeline, and secure anchor investors.
About Convergence and the Blended Finance Accelerator
Convergence is the global network for blended finance. Convergence’s Blended Finance Accelerator supports blended finance practitioners with design grants, acceleration support, and market intelligence to scope, structure, and launch new blended finance solutions that unlock commercial investment to accelerate sustainable development in emerging markets.
On top of market acceleration through its Blended Finance Accelerator, Convergence generates blended finance data, intelligence, and deal flow to increase private sector investment in developing countries. Convergence’s global membership includes over 160 public, private, and philanthropic investors as well as sponsors of transactions and funds.
Media Contact
Sijia Yi
Head of Communications
Convergence Blended Finance
[email protected]
