WALD Innovation Facility

Grant size can vary from a minimum of EUR 750,000 to a maximum of EUR 1.5 million. Grantees are required to contribute an additional funding of at least 25% of the grant amount (on top of the grant amount) as match funding. Co-financing demonstrates the proponent’s commitment to the project and ensures alignment with private sector interests. 

Whilst in-kind contributions (e.g., staff time, equipment) are welcome, the 25% match funding should come from other financing sources secured by the proponent, such as private sector investors or government programmes. 

At the end of the Innovation Facility grant funding period, the lead partner must submit a letter to the IUCN confirming the matching funds that have been contributed. While budgeting, it is critical to be realistic about what can be accomplished with the available funds and within the grant funding period

More information can be found here

The eligibility of the proposed project for Innovation Facility funding will be assessed in Section B “Project Description and Eligibility for Innovation Facility Funding” of the Concept Note (Annex 2). 

2.2.1. Eligible categories Supporting nature-based carbon projects across a variation of ecosystems is crucial for enhancing climate resilience, protecting species, and promoting ecological balance. The Innovation Facility will provide grant funding for a maximum period of 24 months to innovative projects that fall within one (or more) of the following three categories: forests, wetlands, and blue carbon. 

• Forests: This category includes activities on inland forest land (that is not classified as wetland), such as forest restoration and agroforestry that enhance carbon storage while promoting biodiversity and livelihood outcomes.
• Inland wetlands: This includes activities on land with organic or mineral wet soil (i.e., saturated by water for all or part of the year) which are vital for carbon sequestration and water regulation, such as wetland restoration, peat rewetting, enhanced sequestration of GHGs in vegetation biomass and soils.
• Coastal wetlands: This includes activities in coastal and marine ecosystems (also referred to as “Blue Carbon”), such as ecosystem restoration in mangroves, tidal marshes, kelp or seagrass beds, which are significant carbon sinks and provide critical ecosystem services. 

Projects should focus on generating carbon removals. Corresponding methodologies should be used. REDD projects are excluded. Eligible activities per category are further described below. 

Forest-based activities that focus on removals of CO2 

Forest-based ecosystems are essential for climate mitigation, serving as powerful carbon sinks that regulate global carbon cycles and support biodiversity. However, without targeted intervention, these ecosystems risk degradation, potentially transforming into significant carbon sources and exacerbating climate change. Restoration and agroforestry are key activities in this category, offering solutions to enhance carbon sequestration, restore ecosystem health, and improve land productivity. 

Restoration refers to the recovery of degraded or deforested land and ecosystems, as well as the recovery of associated biodiversity and ecosystem functions. The corresponding baseline is the degraded or deforested state of the land, where carbon stocks are low or decreasing. In this baseline scenario, CO₂ sequestration is minimal, and further degradation could release additional carbon.

More on the eligibility criteria can be found here

Projects funded by the Innovation Facility must be implemented in countries eligible for Official Development Assistance (ODA), as defined by the OECD Development Assistance Committee (DAC) list. To be eligible, these countries must: 

• Be on the OECD DAC list of ODA recipients, and;
• Not be subject to international sanctions: Countries subject to international sanctions or other restrictions imposed by the United Nations (UN), European Union (EU), the Federal Republic of Germany or Switzerland, and any sanctions by organisations where these countries are members, are ineligible for Innovation Facility funding. If the applicable sanction regulations are violated, the full grant can be reclaimed