Grants

The document describes grants as non-repayable transfers used primarily when commercial potential is low or to achieve investment readiness. It categorizes grants into development grants, technical assistance, and project preparation facilities, and identifies key providers ranging from philanthropic organizations like the Gates Foundation to multilateral funds like the Green Climate Fund. The guide outlines the application of grants in sectors such as energy transition and adaptation, while detailing the fiduciary and regulatory capacity needed for effective deployment, noting that overheads can range from 10% to 35% depending on state fragility.

• Grants are utilized as non-repayable transfers in scenarios where commercial potential is low or to prepare projects and funds for investment readiness. They are divided into three main categories: development grants for areas without commercial solutions, technical assistance to build capacity, and project preparation facilities to fund design and feasibility to attract private or concessional capital.
• Grant providers include philanthropic entities (e.g., Ford, Rockefeller), public and bilateral funds (e.g., World Bank, USAID, EU), and technical assistance providers such as the UNDP and CPI. These instruments provide direct benefits by reducing borrowing needs and indirect benefits by improving creditworthiness and supporting reforms.
• The effectiveness of grant deployment depends on internal and regulatory capacity, with a typical progression from building fiduciary capacity (0–2 years) to integrating grants into fiscal frameworks (5+ years). Operational overheads vary significantly by context, ranging from 10–20% in strong systems to 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} }