Grants

This guide defines grants as non-repayable transfers used for climate projects with low commercial potential, detailing three main types: development grants, technical assistance, and project preparation facilities. It identifies a wide range of providers from philanthropic organizations to multilateral banks and outlines the operational timelines and overhead costs associated with grant deployment, citing examples from Ethiopia and Rwanda.

• Grants are non-repayable transfers utilized when commercial potential is low or to ensure projects and funds reach investment readiness. They are categorized into development grants for areas without commercial solutions, technical assistance (TA) for capacity building, and project preparation facilities (PPFs) designed to fund feasibility and design to attract private or concessional capital.
• Grant providers include philanthropic and crowd funders (such as Gates, Ford, and Rockefeller), public climate and environment funds (including the World Bank, GCF, and GEF), and TA providers like UNDP and CPI. These instruments provide direct benefits by reducing borrowing needs and indirect benefits by improving creditworthiness and supporting reforms.
• The deployment of grants varies by purpose, taking 6–18 months for social or TA projects and 5–10 years for climate and environment projects. Overhead costs typically range from 10–20% in strong systems, increasing up to 35% in fragile states.

APA

Climate Policy Initiative (2025). Grants. https://www.climatepolicyinitiative.org/toolkit-instrument/grant/

Chicago

Climate Policy Initiative. Grants. 2025. https://www.climatepolicyinitiative.org/toolkit-instrument/grant/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Grants |date=21 October 2025 |url=https://www.climatepolicyinitiative.org/toolkit-instrument/grant/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2025grants, author = {{Climate Policy Initiative}}, title = {{Grants}}, institution = {Climate Policy Initiative}, year = {2025}, month = oct, url = {https://www.climatepolicyinitiative.org/toolkit-instrument/grant/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }