Subnational Climate Fund (SCF) Grant

About this grant

The Subnational Climate Fund (SCF) is a global blended finance initiative that invests in and scales mid-sized climate resilient, low-carbon infrastructure and nature-based solutions in developing countries. The fund addresses the gap in financing for subnational climate projects, recognizing that 50-80% of climate change solutions are within the hands of sub-national authorities. SCF supports sustainable energy, waste and sanitation, regenerative agriculture, and nature-based solutions projects that deliver measurable and certified SDG impact at the local level. The initiative operates through four key components: an investment fund managed by Pegasus Capital Advisors investing in a global portfolio of mid-sized infrastructure projects; a grant-funded technical assistance facility managed by IUCN with a target size of USD 28 million to identify suitable projects and train implementers; an anchor investment from the Green Climate Fund of up to USD 150 million as a first-loss tranche to mitigate risk and bridge the gap between public and private investors; and a consortium partnership providing expertise across the value chain including Pegasus Capital Advisors, IUCN, BNP Paribas, R20: Regions of Climate Action, and Gold Standard.

Eligibility

Projects must be located in developing countries, with specific focus on 13 Least Developed Countries (LDCs) and 6 Small Island Developing States (SIDS). Eligible projects are mid-sized climate-resilient and low-carbon infrastructure or nature-based solutions at the subnational level, operating in sectors including sustainable energy, waste and sanitation, and regenerative agriculture. Projects must deliver measurable and certified SDG impact and meet environmental and social safeguards standards.

How it's scored

Projects are evaluated based on financial performance, environmental and social benefits, feasibility, and impact certification standards. Gold Standard certification provides confidence that results are measured and verified. Projects must demonstrate alignment with the Paris Agreement and Sustainable Development Goals. Technical assistance facility managed by IUCN identifies and evaluates suitable projects for fund investment.

Key requirements

• ✓Mid-sized climate-resilient, low-carbon infrastructure or nature-based solutions projects
• ✓Operations or investment focus in developing countries, LDCs, or SIDS
• ✓Primary activity in sustainable energy, waste/sanitation, regenerative agriculture, or nature-based solutions
• ✓Eligible for blended finance equity investment structure with concessional first-loss tranche

Recent past awardees

Knowing who's won the last rounds tells you whether you're in the strike zone.

• Ifria · 2026 · $20M

Funder contact

The notice names a programme contact you can speak to before applying.

Frequently asked questions

How much funding does Subnational Climate Fund (SCF) – Pegasus Capital Advisors offer?

Subnational Climate Fund (SCF) offers up to $150M.

Who can apply for Subnational Climate Fund (SCF)?

Eligibility covers organisations in GLOBAL-SOUTH, AFRICA, ASIA, SE-ASIA, SOUTH-ASIA, LATAM and 1 more countries; startup, sme, large-company, nonprofit, social-enterprise, consortium. See the eligibility criteria above for the full conditions.

Relevant sectors

About this sector

Renewable energy funding covers solar, wind, hydropower, geothermal and bioenergy, from early research to grid-scale deployment. Public money tends to back demonstration, grid connection and access to energy in emerging markets, while procurement notices buy installation, operation and maintenance. Calls often ask for proof of resource assessment, permitting progress and local partners.