Making Climate Finance work for early-stage innovations in low-income country settings

Frontier Technologies Hub

Deadline for applications:

23.59 GMT, Monday 12th December 2022

Budget:

up to £25,000

Want to contribute to the UK Civil Service’s most innovative programme?

The Frontier Technologies Hub (FT Hub) works with the UK Foreign Commonwealth and Development Office (FCDO) at the intersection of tech, innovation, and international development. We work across three main areas:

️ Livestreaming explores the use of frontier technologies by working with partners all over the world to test and scale tech with the potential for positive social impact.

️ Futures️ connects FCDO people with one another and the world of tech, equipping them to apply frontier technologies in their programmes.

Hub Research gathers & shares what we learn and dives deeper into areas where tech has the greatest potential for doing good.

The FT Hub is managed by three partners: Results for Development (R4D), DT Global (formerly IMC Worldwide), and Brink. It’s funded by UK Aid from the UK Government. To find out more about the programme and its goals, visit our website.

The opportunity

In recent years there has been significant innovation in using public sector finance to

attract private investment in climate change projects and an appetite for doing so. A brief literature scan indicates that this form of ‘climate finance’ for innovation has focussed on grant-based early-stage research, late-stage demonstration support and support for innovation business models. Simultaneously, much of the literature available explores macro-level theoretical arguments but lacks real world examples of the successes and limitations of climate finance applied to technology and innovation.

The FT Hub has a growing portfolio of early stage climate technology innovations that intend to access climate finance as a route to sustain investment. Working with our pilot teams over the next 12 months, we are drawing together a series of learnings on how they can best position their innovations for future funding.

Whilst these key insights into technology application are being surfaced by the FT Hub, we also want to better understand how grant funding can be more catalytic for early-stage innovators. In other words, how can public sector funding most effectively be deployed to attract climate finance investment?

FT Hub is looking to commission a short report to explore how public sector climate finance can be used most effectively to leverage private sector investment in innovation, specifically in reforestation initiatives in low-income country settings..

The primary aim is to better understand the role of public sector climate financing as a tool to scale up private sector investment in early-stage innovation and to explore how climate financing agencies can better support early-stage innovators for success into the future.

The scope of work

Working in collaboration with the FT Hub, the primary focus of this work is to produce a short research report identifying the types of climate finance available and where they are best applied within the innovation value chain. It might seek to answer such questions as:

• What do we mean by climate finance and how has it been applied?
• What routes to scale are available through climate financing for early-stage innovation?
• What are the associated enablers and barriers to scale?
• What alternative routes to scale for such initiatives outside of public sector financing could be considered?
• What are the emerging best practices in how donor agencies have responded to early-stage innovation seeking investment?
• What are the key ways in which donor organisations can best support these early stage innovations to access additional alternative climate finance investments?

It is envisioned that the report will result in a series of learnings and recommendations to increase understanding of how public sector funding can better support donor-funded early-stage innovations in the climate space.

The anticipated output for this work is a report that will be accessible and relevant to FCDO technical portfolio holders, other stakeholders involved in working on tech-driven programmes and projects from across the international development and sustainability sectors, including programme managers, policy makers and technologists.

Delivering the work and methodology

We are looking for proposals that demonstrate an approach that is:

• Consultative: drawing on a range of expert opinions, this could include implementers, donors, development agencies, governments, academics, and wider ecosystem actors.
• Collaborative: working with global stakeholders and advisors in FCDO and on the FT Hub.
• Value-adding: is seeking to generate evidence, insights and conceptual frameworks that add to what already exists in the wider literature, and can be practically useful to donors and climate financing agencies looking to encourage and respond to early-stage innovation.

This is an exciting opportunity to surface additional insights for donor organisations on climate finance and provide recommendations for improved ways to support early-stage innovators to access routes to scale.

Specifically, we anticipate that the proposed methodology will include:

• A literature scan of existing bodies of work that address the key questions presented above.
• Conduct 1:1 consultations with at least 15 experts and advisors. This could include the pilot teams we are engaged with, representatives from the FCDO and other donor organisations, and climate accelerators, among others. The bidder is expected to identify the stakeholders they intend to engage.
• A look at findings from other FCDO climate-related grant funding programmes to surface collective insights.
• Compilation of a final report.
• Participation in a dissemination event to share the findings from the report. Please note that logistical support including inviting participants, promotion, etc. will be provided by the FT Hub.

However, we are open to suggestions as to how this work might be approached.

Proposed Timeline for Application and Selection

• Application deadline – 12 December 2022 at 23:59 UK time (GMT).
• Assessment of written applications – w/c 12 December 2022.
• 45 minutes interview with FT Team for shortlisted applications only (15-minute presentation by candidates, followed by Q&A) – 15 December 2022.

Proposed Timeline for Delivery

• Kick-off / work commencing – 02 January 2023.
• Advanced draft report – completed by 20 February 2023.
• Finalised report incorporating feedback from the FT Hub – completed by 20 March 2023.
• Dissemination event in early April 2023.

Budget

The funding amount available for the contract is up to £25,000 GBP, inclusive of all taxes. Bids above the maximum amount will not be considered.

Evaluation Criteria

Criterion

Points

Strength of proposed vision, approach and methodology in responding to the scope of work. We will evaluate proposals on the following criteria:

1. Consultative: Strength of the proposal’s plan for stakeholder engagement to ensure inclusion of relevant actors.
2. Collaborative: The extent to which your proposal incorporates collaboration with the FT Hub and FCDO.
3. Value adding: The extent to which your proposal demonstrates an understanding of relevant existing literature and has a clear vision for where the report can add value, create new knowledge and insight.

40

Demonstrated technical expertise in producing robust research and high-quality evidence, particularly in relation to climate finance. This includes:

1. Expertise in research methods.
2. Previous experience producing research relevant to climate finance. Ideally including specific experience / expertise in supporting early innovation in this space in low-income country settings.
3. Expertise in convening stakeholders (preferably non-technical ecosystem actors, e.g. policymakers) and disseminating evidence and learning.

40

Strength of the commercial proposal

1. Value for money: proposals which offer an ambitious, but realistic use of the funds will be scored more highly.

20

Maximum points available

100

Enquiries

Please contact [email protected] for further enquiries regarding this Terms of Reference or for further information on the Frontier Technologies Programme. Title your enquiry ‘Enquiry – FT Climate Finance Deep Dive’.