Blended Finance Accelerator (formerly Design Funding)

Blended Finance Accelerator(formerly the Design Funding program)

Supporting early-stage 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.

Current Initiatives

Blended Finance Accelerator for Fund Managers (A4FM)

By offering a full suite of support required to scope, design and launch blended finance vehicles, the Blended Finance Accelerator for Fund Managers (A4FM) aims to strengthen Canadian and global fund/ asset managers’ use of blended finance as a critical structuring approach for investing greater amounts in emerging and developing markets (EMDEs). A4FM will provide three integrated forms of support: skill-building, catalytic grant awards, and on-going acceleration support.

En offrant une gamme complète de soutien nécessaire à la définition, à la conception et au lancement de véhicules de financement mixte, l'Accélérateur de financement mixte pour les gestionnaires de fonds (A4FM) vise à renforcer l'utilisation par les gestionnaires de fonds et d'actifs canadiens et internationaux du financement mixte en tant qu'approche de structuration essentielle pour investir des montants plus importants dans les marchés émergents et en développement (EMDEs). A4FM fournira trois formes de soutien intégrées : renforcement des compétences, octroi de subventions catalytiques et soutien continu à l'accélération.

Application Deadline

To be Announced

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Catalytic Climate Finance Facility

The Catalytic Climate Finance Facility (CC Facility) is a partnership between Climate Policy Initiative (CPI) and Convergence focused on scaling sustainable climate finance by providing grant funding and dedicated acceleration services to early-stage and market-ready financial solutions in sectors that are severely under-financed in developing countries.

Application Timeline

Next application intake - To be announced

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Asia Climate Solutions Design Grant Window

The Asia Climate Solutions (ACS) Design Grant will provide early-stage grants for high-impact climate financing solutions in emerging markets in Asia. The Grant aims to mobilize private capital at scale into high-impact target sectors across climate mitigation and adaptation.

Application Timeline

Next application intake - Fall 2025

Gender-Responsive Climate Finance Window

The Gender-Responsive Climate Finance Design Funding Window will award early-stage grant funding for the design and launch of innovative blended finance vehicles focused on the intersection of climate change and gender equality in emerging markets globally. This Window is funded by the Government of Canada.

Le Guichet de financement de la conception du financement climatique sensible au genre va accorder des subventions de démarrage pour la conception et le lancement de véhicules de financement mixte innovants axés sur l’intersection des problématiques de changement climatique et d’égalité des genres dans les marchés émergents du monde entier. Ce guichet est financé par le gouvernement du Canada.

Application Timeline

No longer accepting applications

Past Initiatives

Asia Natural Capital Design Funding Window

The Asia Natural Capital Design Funding Window provided grant funding for the design and launch of catalytic blended finance solutions focused on natural capital in Asia. This Window was funded thanks to the support of the RS Group, a family office based in Asia. It is closed and no longer accepting applications.

Indo-Pacific Design Funding Window

The Indo-Pacific Design Funding Window provided grant funding for the design and launch of catalytic blended finance solutions focused on climate finance and gender equality in certain countries in the Indo-Pacific region. This Window was funded by the Australian Government. It is closed and is not accepting applications.

Tertiary Education Financing Competition

This competition aimed to identify and award successful existing student financing solutions to: 1.) help more young people enter tertiary education, 2.) drive improved education outcomes, and 3.) increase youth employment. | (French) Ce concours a identifié les solutions de financement d’études existantes qui peuvent aider davantage de jeunes à entrer dans l’enseignement supérieur et ainsi améliorer les résultats en matière d’éducation ainsi que l’augmentation de l’emploi des jeunes. | (Spanish) Este premio identifié soluciones exitosas de financiamión de estudiantes existentes que pueden ayudar a más jóvenes a ingresar a la educación terciaria y, por lo tanto, impulsar mejores resultados educativos, así como un mayor empleo juvenil.

SDG Impact Finance Initiative Design Funding Window

The SDG Impact Finance Initiative’s Innovation Window awards grants for innovative impact finance solutions to mobilize private capital for sustainable development in emerging and frontier markets. The Initiative is funded by the State Secretariat for Economic Affairs (SECO), the Swiss Development Cooperation Agency (SDC), the UBS Optimus Foundation, and the Grand Duchy of Luxembourg. From 2022 to 2024, Convergence supported the design, set-up, launch, and management of the Innovation Window as the strategic implementing partner for the Window’s first three funding cycles, awarding USD 4.6 million to 19 solutions ranging in maturity from feasibility studies to proof of concepts and expansion stage grants across multiple SDGs and the Global South. Review the grant portfolio to learn more.

Global Emerging Markets Design Funding Window

The Global Emerging Markets Design Funding Window provided grant funding for the design and launch of catalytic blended finance solutions across emerging markets. This Window was funded by Global Affairs Canada. It is closed and no longer accepting applications.

Un Joint SDG Fund

The UN Joint SDG Fund (the Fund) aims to close the financing gap to achieve the Sustainable Development Goals (SDGs) in developing countries through systemic action by the UN system. Component 2 of the Fund provides grant funding, preparatory and catalytic grants to initiatives that can deliver a demonstration of concept and leverage investment at scale. Between April 2020 and February 2021, Convergence led an independent evaluation process to evaluate and select initiatives for the First Call on SDG Financing for Component 2 of the Fund.

Frequently Asked Questions

What is Design Funding?

Convergence’s Design Funding is a unique market acceleration program providing early-stage grant funding focused exclusively on the design of innovative blended finance solutions. Despite the significant potential of blended finance, the reality is that often transactions are complex, time intensive, and high-cost to structure and launch. Design Funding is meant to support this process and encourage organizations to design solutions that would otherwise be too risky or complex to pursue, but show high potential to attract private capital at scale if successful.

Convergence operates multiple design funding windows with different thematic and geographic targets.

What kind of grants are provided?

Addressing the spectrum of blended finance solution design activities, Convergence offers feasibility, study and proof-of-concept and expansion grants. Feasibility study grants are to be used to explore the feasibility of a blended finance solution. For example, activities funded under a feasibility study grant could include assessing the investability/bankability of a transaction, conducting market scoping, and developing the vehicle structure. Proof-of-concept grants are to be used to complete all design and structuring activities required to get a blended finance solution to launch. For example, activities funded under a proof-of-concept grant could include finalizing the capital structure and financial model, establishing the legal structure, and finalizing key documents. Expansion grants are used to support already launched vehicles to scale and reach a financially viable size. For example, activities funded under an expansion grant could include fundraising/marketing to reach capital-raising targets, producing key legal documents, due diligence on the initial pipeline and capital deployment and hiring of key personnel. Grant amounts and duration depend on the solution’s stage of development as well as the Design Funding window under which the grant is awarded.

Who is eligible to apply for Design Funding?

Any organization or consortium of organizations is eligible to apply for funding. For example, eligible organizations could include asset owners, asset managers, financial intermediaries, advisory firms, financial institutions, foundations, not-for-profit organizations, social enterprises, and corporations. The lead organization must be able to provide proof of incorporation and financial statements for the previous fiscal year.

Multi-lateral organizations (e.g. United Nations Agencies) and development banks (e.g. World Bank Group, Development Finance Institutions (DFIs)) are not eligible to apply for or directly receive a grant but may be part of a consortium with private sector firm(s) and/or non-governmental organization(s) (NGOs) receiving a grant.

How do you apply for Design Funding?

Visit our Design Funding page for Windows that are currently accepting applications. If you and your solution fit the eligibility criteria for an open Window, then please follow the instructions on the specific page to apply. Note that each solution can only be submitted to one Window.

Which window should I apply to?

It is the applicant’s responsibility to choose the Window for which their initiative is best suited. Visit our Design Funding page and navigate to individual Window pages to learn more about the focus areas and eligibility criteria for each Window. If an initiative is eligible under multiple Windows, organizations must select one Window to apply to. If an applicant has applied to one Window and has been rejected, they are able to apply to another Window with the same concept, provided they are also eligible under that Window. Organizations are able to apply to multiple Windows simultaneously with unique initiatives.

Applicant Decision Tree