Asia Climate Solutions Design Grant

The Asia Climate Solutions (ACS) Design Grant provides grant funding and acceleration support to catalyze innovative blended finance solutions that mobilize private capital for climate resilience across developing Asia. The ACS Design Grant is one of Convergence's regional blended finance accelerators. Supported by the Australian Government through the Department of Foreign Affairs and Trade (DFAT), this funding cycle will support innovative blended finance solutions that mobilize capital for climate-resilient agriculture and nature-based solutions across Southeast Asia. Agriculture is central to economic growth, employment and food security across Southeast Asia, accounting for around 10% of regional GDP and employing approximately one-third of the workforce. At the same time, the region holds around 30% of the world's nature-based solutions potential, yet climate change, environmental degradation and persistent financing gaps continue to constrain investment in resilient agricultural systems and natural ecosystems. Women farmers are particularly affected, often facing barriers to finance, markets and productive resources. This funding cycle will support blended finance models that strengthen climate-resilient agriculture and/or other nature-based solutions. The programme seeks commercially viable blended finance models that can mobilize public, philanthropic and private capital to deliver climate and development outcomes at scale. ACS is a multi-donor funded programme with anchor support from Australia's DFAT, Olayan Group, UBS Optimus Foundation, The Rockefeller Foundation, and the Monetary Authority of Singapore (MAS).

The application process begins with a call for proposals, with information sessions held before the submission deadline. Applicants submit concept notes through an online portal, which are screened for eligibility and assessed against the evaluation criteria. All applicants are notified of the outcome by email, and shortlisted applicants are invited to submit full proposals. The Convergence team reviews these proposals against the evaluation criteria and selects the strongest for a pre-due diligence Q&A and interview, during which applicants’ management teams present their proposals and respond to questions. Shortlisted applicants then undergo full due diligence through two parallel tracks: a proposal-level review involving detailed questions, stakeholder interviews, and supporting documentation; and an applicant-level compliance review covering incorporation certificates, audited financial statements, financial models, and pitch decks. Proposals that successfully complete due diligence are submitted to the Investment Committee, a panel of independent experts, for approval or rejection. Proposals approved by the Committee are then submitted to Convergence’s Senior Management or Board for a final funding decision. Following final approval, a compliance check, and a budget review, grant agreements are executed and awardees are announced publicly.

Evaluation Criteria We evaluate eligible applications based on the following criteria: 1. Track Record and Capabilities: Organization’s relevant experience in designing and managing investment vehicles Commitment of the core team Local presence or partnerships in target markets 2. Market Opportunity and Additionality: Clear market gap and rationale for using a blended structuring approach Potential to drive capital in EMDEs and create new investable opportunities Strategic use of A4FM support and applicant’s contribution 3. Target Size and Potential to Scale: Clear capital structure and fundraising strategy Level of institutional/private capital participation Pathway to scale-up, reach target size, and replicate at scale 4. Development Impact: Clear development impact thesis and value creation lens Targets underserved communities, with gender lens Clear KPIs and use of global standards for measurement and monitoring 5. Commercial Viability and Path to Financial Close: Bankability of the structure and alignment with investors’ risk–return profiles Progress toward reaching a close and clarity on next steps Robust risk management and governance framework 6. Strategic Partnership and Stakeholder Support: Support from key internal and external partners Well-defined roles and engagement strategy for launch

Focus sectors: The thematic focus for this funding cycle is on blended finance solutions targeting the following sectors and sub-sectors: Climate-resilient Agriculture & Food Security - Climate-smart, regenerative agriculture, and sustainable aquaculture - Agricultural value chains, processing and market access - Farmer, cooperative, and agri-SME finance - Agricultural insurance and climate risk management - Agri-tech, biotechnology, and smart farming Other Nature-Based Solutions Sectors - Sustainable forestry, landscape restoration, and ecosystem management - Carbon markets and natural capital finance (including biodiversity finance and blue carbon) - Biodiversity conservation and ecosystem restoration - Coastal protection, watershed management, and ecosystem resilience

We evaluate eligible applications based on the following criteria: 1. Development Impact and Gender Considerations: The blended finance solution is designed to deliver inclusive, measurable and significant environmental and social impact. Gender considerations are intentionally integrated into the design, governance, implementation, and stakeholder engagement of the solution. Clear KPIs, including gender-related indicators where appropriate, and the use of recognised global standards to measure, monitor, and report impact. 2. Track Record and Capabilities: Organization’s relevant experience in designing and managing investment vehicles. Commitment of the core team. Local presence and partnerships in target markets. 3. Additionality: Clear market gap and rationale for using a blended finance structuring approach. Potential to drive capital in targeted markets and create new investable opportunities. Strategic use of ACS acceleration support and catalytic grant funding to scale. 4. Scalability and/or replicability: Clear capital structure and fundraising strategy. Potential to mobilize private capital at scale. Pathway to scale-up, reach target size, and replicate across markets. 5. Innovation and Demonstration Effect: Potential of the solution to create learnings for the field and be adapted or replicated by other practitioners. Developing a new model or replicating an existing model within a new market context. 6. Likelihood to achieve financial close: Bankability of the structure and alignment with investors’ risk–return profiles. Progress toward reaching a close and clarity on next steps. Robust risk management and governance framework. 7. Stakeholder Support: Support from key internal and external partners in the target region/country. Well-defined roles and engagement strategy for launch. For detailed evaluation criteria and scoring, refer to the Evaluation Criteria document.