Indo-Pacific NGO Blended Finance Accelerator

The Indo-Pacific NGO Blended Finance Accelerator is a five-year, AUD 10 million initiative launched by the Australian Department of Foreign Affairs and Trade (DFAT) in partnership with Convergence Blended Finance. The Accelerator supports NGOs to design and scale blended finance solutions that unlock private capital for climate action and gender equality in the Indo-Pacific. Blended finance activity is growing in the Indo-Pacific region, yet funding still falls far short of what is needed to meet development goals. A major gap is the lack of investable, high-impact vehicles. NGOs are well-placed to help fill this gap, bringing local knowledge, technical expertise, and trusted community relationships. However, their role in blended finance remains limited, currently NGOs sponsor only about 6% of global blended finance deals. Persistent barriers include: Limited understanding of blended finance concepts and structuring approaches Limited expertise and resources for financial structuring and navigating regulatory restrictions Resource constraints and governance complexity that hinder feasibility studies and vehicle design Restricted access to private investors and specialized technical service providers The Accelerator is designed to address these barriers by providing catalytic grants and dedicated acceleration support to help NGOs design and launch blended finance vehicles. In doing so, it aims to build a pipeline of investable solutions enabling them to take on roles not only as technical assistance providers, but also as impact managers and, where appropriate, fund managers. In doing so, the Accelerator will help mobilize private capital at scale, expand development impact, and set an example for the wider NGO community.

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 Development Impact: The financial vehicle is designed to deliver inclusive, measurable and significant environmental and social impact especially for underserved groups like women, indigenous people, and people with disabilities, with clear impact indicators and a focus on underserved geographies like Least Developed Countries (LDCs) and frontier markets (e.g., Pacific Island countries) Scalability and Replicability: The vehicle aims to mobilize commercial and private capital at scale and has the potential to be replicable across similar contexts, serving as a model for other NGOs and contributing to a pipeline of investable solutions. Additionality and Demonstration: Addresses climate finance and gender barriers in a new or more efficient way than existing solutions. Demonstrates a clear need for blended finance and grant and acceleration support from the Accelerator to unlock capital for underserved populations. Gender Consideration: The vehicle incorporates gender-related risks and opportunities, and plans to use frameworks like the 2X Criteria to track gender outcomes. Ability to fundraise/Likelihood to achieve financial close and financial sustainability: The vehicle demonstrates strong intentionality and potential to engage commercial and private investors, with a credible pathway toward attracting private capital in the short to medium term and achieving long-term commercial viability with minimal or no concessionality. While the capital structure may still be evolving, the concept reflects a bankable/investable approach, supported by a robust governance model, investment strategy, and risk management framework. Investors and market participants have been actively engaged in shaping the concept and validating its relevance and investability. Internal buy in: The NGO has internal leadership support, alignment with its mission, a committed team in place, and the legal capacity to develop or participate in the blended finance vehicle. Stakeholder support: The vehicle has identified key financial and implementation partners with strong support from critical stakeholders in the target region(s) Track record: NGOs must demonstrate relevant experience or a clear plan to access technical and financial expertise, understand local barriers in the target sectors and/or geographies, and have established partnerships to support the development and implementation of their blended finance vehicles.

Blended finance vehicles supported by the program must focus on either or both of the following impact themes - Climate Action - Addressing climate change mitigation, climate change adaptation or both. Must align with at least one of the following: SDG 7 (Clean Energy), SDG 11 (Sustainable Cities), SDG 12 (Responsible Consumption), SDG 13 (Climate Action), SDG 14 (Life Below Water), SDG 15 (Life on Land). Gender Equality - Strong gender equality focus. Must significantly contribute to gender outcomes and focus on integration of gender equality into the design, implementation, and operations of vehicles, rather than as a “bolt-on feature” or “nice-to-have”. Must align with SDG 5 (Gender Equality) and can include vehicles which are targeting the nexus of gender equality and other impact themes like health care, education and financial inclusion.

Proposals must articulate a clear need for grant support for the design and/or launch of an innovative blended finance vehicle. Solutions must target climate mitigation and/or adaptation in the eligible sectors identified below. The proposed solution should be a financial instrument with a blended finance structure. It can be in the form of a fund, project finance vehicle, private company, bond, results-based financing, facility, or any other type of financial instrument. Vehicle must demonstrate potential to drive private investment at scale for development impact in Southeast Asia. Applicant types: Proposals will only be accepted from organizations or consortium of organizations. For example, eligible organizations could include asset owners, asset managers, advisory firms, foundations, not-for-profit organizations, and private enterprises. The lead organization must be able to provide 1) proof of incorporation, and 2) financial statements for the previous fiscal year.