First Call for Proposals under the GEF-8 Blended Finance Global Program
Posted on 2023-01-20
Malawi is one of the recipients of the Global Environment Facility (GEF) support. Since 2008, the GEF and its Agencies have successfully used a wide array of non-grant instruments such as debt, equity and guarantees to attract private sector investment and deliver global environmental benefits beyond business as usual. The GEF launched the Non-Grant Instrument (NGI) Pilot under GEF-6, followed by the GEF-7 NGI Program which established a competitive selection process using periodic calls for proposals.
The Eighth Replenishment of the GEF Trust Fund includes the “Blended Finance Global Program (Non-Grant Instruments)” which is the continuation of the NGI Program and expands the funding envelope to USD 195 million. Under GEF-8, the GEF will continue to support innovation, de-risking financial structures, and accelerating the use of blended finance in support of delivering global
environmental benefits, catalysing investments from private investors and capital markets at global and national levels aligned with focal area objectives and integrated programs.
The GEF-8 blended finance program seeks proposals that would meet one or more following criteria but not limited to:
- support innovation at the forefront of investments in nature and climate: including biodiversity, land degradation neutrality, climate-smart agriculture, new climate technologies and deforestation-free food systems, while integrating climate resilience, and nature-based solutions;
- support multi-trust fund projects that will deliver benefits aligned with the adaptation and resilience agendas;
- test new financial instruments under the GEF -8 NGI Policy, such as convertible instruments, contingent instruments linked to environmental performance, political risk insurance and liquidity facilities;
- expand participation of SIDS and LDCs in the blended finance window;
- support the structuring of new asset classes, investment and aggregation platforms to reach scale and issuance of securities in capital markets linked to nature or climate goals;
- support investment in MSMEs striving to enhance sustainable sourcing of value chains.
This is the inaugural call for proposals under the GEF-8 Blended Finance Global Program.
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