Call summary :

The Catalytic Climate Finance Facility (CC Facility) has launched its fourth call for applications for high-impact, scalable, and market-ready blended climate finance solutions in developing economies....

This cycle will target sustainable agriculture solutions in sub-Saharan Africa and South Asia, as well as other climate adaptation and mitigation initiatives across the Asia-Pacific region.

Set up in 2023, the CC Facility offers up to USD 500,000 in grant funding for each selected project. The program also provides tailored technical assistance to all grantees, including support on strategies, fundraising, and operations to help applicants overcome market barriers and effectively mobilize private capital for climate action.

To date, the CC Facility has awarded over USD 4 million to test, structure, launch, and expand 11 blended climate finance solutions globally.

These solutions support a range of initiatives, such as climate-resilient agriculture, marine conservation, biodiversity, climate adaptation, and renewable energy. They do so via blended finance solutions, including debt, project finance platforms, and venture capital.

“The CC Facility highlights the increasing potential for unlocking private capital in a pivotal year for demonstrating the value of sustainable development investments,” said Barbara Buchner, Global Managing Director of Climate Policy Initiative (CPI).

“It helps mobilize investment in under-financed areas, including private and broader domestic resources, to develop solutions that address the worst impacts of global warming,” she added.

“With foreign aid budgets being cut across the board, initiatives like the CC Facility that are focused on mobilizing private capital to the places and challenges that need it most are more important than ever,” said Joan Larrea, Chief Executive Officer (CEO) of Convergence.

“We are thrilled to be backing mechanisms that have the potential to be ecosystem and market builders delivering outsized and lasting impact to the countries and communities they are located in,” explained Larrea.

Amid calls for the existing global climate finance architecture to evolve, the CC Facility is a partnership between Convergence and CPI that aims to provide holistic solutions to accelerate the implementation of blended finance structures while catalyzing private capital.

Register for the information session

To learn more about the program, including eligibility and selection criteria, and ask our team questions, you can participate in our information session on April 9. To accommodate different time zones, the webinar is offered at two different times.

KEY EVALUATION CRITERIA

We evaluate eligible applications based on the following criteria:

Additionality:
How does this structure compare to others in the market and why are the alternatives inadequate to address the development challenge at hand?
Does this structure address climate finance barriers or a market failure in a new or more efficient way?

Catalytic potential:
Does the structure contribute to climate mitigation and/or adaptation in developing economies?
Is this structure replicable and/or scalable?

Financial sustainability:
Are the right stakeholders involved? Do they show a sufficient level of commitment?
Is the structure financially sustainable? How much runway does the vehicle have?
What conditions must be met for concessional financing to be phased out?

Gender equality:
Is there a strong understanding of gender-related risks and opportunities in the context of the vehicle?
Is there evidence of (or an intention to improve upon) integration of gender considerations across different aspects of the vehicle?

Mobilization:
Does the structure have the potential to mobilize private capital at scale and/or to attract participation from new segments of investors?
Is there any interest (e.g., soft commitment) from potential investors and funders in the solution? How bankable/investable is the structure?

QUALIFYING CRITERIA

The CC Facility supports blended finance structures targeting climate action in developing economies. Applications will be assessed based on a set of qualifying characteristics and key evaluation criteria.

Applicants must meet the following criteria to be eligible for consideration:

Investment theme: Structures addressing climate adaptation and/or mitigation

Sectors: The next round of applications will focus on sustainable agriculture solutions in Sub-Saharan Africa a