CALL FOR

PROPOSALS

The Climate Investment Platform (CIP) has launched acall for proposals to unlock investments in projects thatadvance climate action and energy security in SmallIsland Developing States (SIDS). The selected projectswill help fund clean energy opportunities in the islandnations—who are among the most vulnerable to climatechange—through public sector entities and public-privatepartnerships.

Small Island Developing States (SIDS) have demonstratedtheir firm commitment to transitioning to clean energy, asreflected in their first round of Nationally DeterminedContributions (NDCs) under the Paris Agreement.

However, many SIDS are still heavily reliant on importedfossil fuels for energy generation. This vulnerabilitypresents both near-term and chronic challenges inproviding reliable, affordable, equitable, and sustainableenergy services to people living in SIDS.

Unlocking clean energy investments in Small Island Developing States

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Many SIDS have a large potential for accessing anddeveloping several renewable energy sources, such assolar, wind, geothermal and hydropower. Some SIDS aretherefore slowly emerging as frontrunners in the pursuit ofrenewable-based energy systems, building on abundantlocal and natural resources.

The declining cost of renewable energy and energyefficiency technologies has opened the door for newopportunities to switch to clean energy and establishsustainable solutions in areas such as waste-to-energy,energy and water conservation and urban planning andretrofitting of buildings.

Achieving global goals on energy and climate change inSIDS will mean creating enabling environments for privatesector investments, promoting attractive project pipelinesand targeted support from development partners. A keychallenge for achieving the energy transition in SIDS is toaddress existing investor risks that affect the financingcosts and competitiveness of sustainable energy in these regions.

Despite falling investment costs, SIDS still face highfinancing costs that affects the competitiveness ofsustainable energy versus fossil fuel technologies.Financing costs often reflect several perceived or actualrisks. For instance, barriers in access to grids, lengthy anduncertain processes to issue permits, limited local supply ofexpertise or a lack of long-term price guarantees canincrease the perceived risk for investors and deterinvestments or increase financing costs.

Many SIDS also currently lack the capacity to take arenewable energy or climate project from concept toimplementation preventing them from leveraging innovativeideas and solutions that addresses the challenges faced bySIDS.

Green investments in SIDS -opportunities and barriers

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UNDP has a strong country presence in the SIDS and aclose cooperation with most SIDS governments ondevelopment issues, including energy transformation.UNDP is part of the Alliance of Small Island States andhas extensive experience with developing projects andaccessing climate finance.

SEforALL has developed high quality data and analysison the specific challenges and barriers of clean energytransition in SIDS and has been leading in providinghigh-level advocacy on the issue.

IRENA has a wide array of initiatives that pays specialattention to upscaling renewable energy in SIDS.Through its SIDS Lighthouses initiative, a framework foraction to support SIDS in the transformationdependence to a renewables-based and resilient energysystem, IRENA has supported SIDS directly withmatchmaking and access to climate finance.

The collaboration with GCF, the world’s largestdedicated fund for climate action brings in itsexperience with financing concrete projects that supportresilience and energy transformation in SIDS.

The Climate Investment Platform (CIP) is a global initiativeand a partnership between the United Nations DevelopmentProgramme (UNDP), The International Renewable EnergyAgency (IRENA), Sustainable Energy for All (SEforALL), incollaboration with the Green Climate Fund (GCF).

The CIP blends the capabilities and resources of the fourpartner organizations to address – and unlock – investmentneeds in developing countries, supporting their pursuit oflow-carbon energy ambitions and targets. The partnerssupport countries in a complementary manner withelements such as target setting, establishment of anenabling legal and regulatory frameworks, vast network formatchmaking and international visibility, and developmentof risk mitigation measures to encourage capital flows. Each of the institutions has its value add to support theclean energy transition in SIDS and can benefit thedevelopment of concrete and ambitious project proposals:

How can the Climate Investment Platform help?

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The CIP operates between the climatefinance supply and the demand fromcountries, by providing a comprehensiveoverview of what is available in terms ofclimate finance, eligibility criteria, fundingamounts and timelines and proceduresfor accessing them.

For this request for projects, the partnerswill allocate technical assistance toproject preparation activities in the initialstages of the project development cycle,including enhancing project conceptnotes and the preparation ofdocumentation to unlock funding forproject development activities.

The aim is to support primarily publicsector entities and public-privatepartnerships in SIDS to mature andprepare project ideas and put them on aviable path to unlock and access publicand private climate finance for furtherproject development.

CALL FOR PROPOSALS

The CIP looks to facilitate this initial stageand bring a project idea to a quality projectconcept note, including for example initialpre-feasibility studies and potentialfinancial structures and modelsFurthermore, the CIP will actively seekengagement with financial partners fromthe public and private sector, internationalfinancial institutions, and donors thatpotentially could supply funding for projectdevelopment.

Through this request, the CIP will

award Technical Assistance for

$30,000 to $80,000 to support

development of a project concept,

depending on the size and nature

of the of the project idea, to eligible

applicants.

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Specifications and how to apply

Scoring criteria

Soundness of concept (50%) Long-term sustainability including:

Evaluation of potential environmental, social, and regulatory risks (20%).Cross-cutting impacts or co-benefits (20%)Scalability and replicability of project (10%)

Including waste and water management, urban planning, and buildingsMust be a project assisting clean energy transition and/or energy access,

Must ensure adequate resources for continued engagement with TA/able toprovide a project focal point throughout the project period

Must demonstrate it is aligned with country priorities

Must be able to provide own resources such as an in-kind contribution

Mandatory requirements

Timeline

Must be focused on and deployed in Small Island Developing States

Applicants must demonstrate capacities in the energy sector

Thursday 29 April Launch of the call

Friday 14 May Workshop and Q&A

Thursday 27 May, 12 pm ET Close of call

Tuesday 15 June Announcement of successful applicants

Beginning of August Start of project development

November 2021Initial recommendations

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Submit your project online atwww.climateinvestmentplatform.org/sids-call-for-proposals

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Who can apply?

Public sector entities in SIDSPublic-private partnerships including with associations, NGOs, foundationsWe will consider strong applications from private sector organisations

General inquiriesAnne Marx Lorenzen, Partnerships Specialistanne.marx.lorenzen@undp.org

Media & CommunicationsSophie Guibert, Communications Specialistsophie.guibert@undp.org

www.climateinvestmentplatform.org

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