The U.S. Department of State and the United States Agency for International Development (USAID) Launch a Call for Concept Proposals for the Blended Finance for the Energy Transition Program
The Department of State, in partnership with USAID, has launched the Blended Finance for the Energy Transition (BFET) program by issuing an initial request for concept proposals for private sector-led blended finance structures.
Reducing greenhouse gas emissions while addressing growing energy demand in emerging markets and developing economies will require massive investment (the International Energy Agency estimates over $2 trillion annually by 2030). In this context, unlocking capital from institutional investors will be key to achieving the scale of finance necessary to fund the energy transition.
With catalytic co-funding from the U.S. government and other partners, the goal of BFET is to mobilize $1 billion of capital to advance emerging markets’ energy transition efforts and help limit global average temperature rise to 1.5°C.
Fund managers or other capital deployers are encouraged to submit concept proposals for blended finance structures that deploy catalytic funding into a portfolio of emerging market-based companies and/or real assets that advance the energy transition in this decade. Shortlisted concepts will be invited to submit full proposals.
The process intends to make one or two award(s) of non-repayable catalytic capital from the U.S. government, totaling up to $15 million, subject to the availability of funds, Congressional notification, and completion of domestic procedures. The State Department and USAID will also engage with other donors to contribute additional non-repayable catalytic capital, and with development finance institutions (DFIs) and multilateral development banks (MDBs) to contribute catalytic debt or equity financing to the winning proposal(s).
Applicants must meet eligibility requirements and concept parameters, as outlined in the Request for Concept Proposals. Concept proposals are due May 24.
For more information, email [email protected] or visit the BFET page on the ClimateLinks website.
Official news published at https://www.state.gov/the-u-s-department-of-state-and-the-united-states-agency-for-international-development-usaid-launch-a-call-for-concept-proposals-for-the-blended-finance-for-the-energy-transition-program/
Politics - JISIP NEWS originally published at Politics - JISIP NEWS