Climate Innovation Pull Facility (CIPF) – Monitoring, Evaluation and Learning (MEL) Partner

The UK Department of Energy Security and Net Zero is exploring the development of a new facility – the Climate Innovation Pull Facility. Through pull finance, this facility will support innovation, scale up and market building for climate change mitigation solutions for developing country contexts, focusing on innovative clean energy technologies and business models in a small number of specific applications/sectors, where the evidence shows support is most needed. The planned facility is up to £185m, and subject to approvals. If agreed would be part of the Department's International Climate Finance portfolio and funded with Official Development Assistance (ODA). This contract is focussed on the provision of monitoring, evaluation and learning services for the CIPF.

What do we mean by “pull mechanisms”? In public innovation financing, “pull mechanisms” create incentives for innovators and other actors by creating viable market demand. They seek to reduce viability gaps and induce innovation by signalling demand for solutions to specific problems. Mechanisms often cited include Advanced Market Commitments, Results or Outcomes Based Financing, Prizes/Challenges, innovation bulk procurements, Contracts for Difference, among others. By contrast, much innovation support has to date utilised “push mechanisms” directly subsidising up-front R&D costs.

In terms of climate mitigation solutions, the facility will have a particular focus on clean energy innovation themes. The work being explored would be linked to the Ayrton Fund commitment by the UK Government, to support clean energy research, development and demonstration (RD&D), as part of the wider UK commitment to tackle climate change. Examples of Ayrton Fund thematic challenges are set out on gov.uk.
The MEL partner will be responsible for independent evaluation of the Facility as well as wider monitoring and learning services.

To explore this concept with stakeholders and the market, the Department hosted some initial engagement in July 2023. As the concept is now progressing further we would like to take the opportunity to provide a further update to the market on our thinking and test some specific ideas for how we plan to structure the facility, in particular the connections between the MEL partner and the Facility Manager. Information from previous sessions on the Facility can be accessed on our e-sourcing portal: https://beisgroup.ukp.app.jaggaer.com/esop/guest/go/opportunity/detail?opportunityId=55356

For more information click here.

Closing date: 27 Feb 2024