FAQ for IKI Large Grants 2025

Project outlines can be submitted until 4:00 pm (CET) on 18 February 2025 exclusively via the IKI online platform and in English. Outlines that are not submitted within the deadline and in the designated way, but e.g. in paper form or as an attachment by e-mail, cannot be considered in the selection procedure.

After successful submission of the project outline to the IKI Office at ZUG, receipt will be confirmed by email.

All project outlines submitted in due time via the online platform will be reviewed.

The International Climate Initiative (IKI) accepts various actors from Germany and abroad. The following types of organisations are eligible to apply: non-governmental organisations, universities and research institutions, implementing organisations of the Federal Republic of Germany as well as international intergovernmental organisations and institutions such as development banks, organisations and programmes of the United Nations, and commercial enterprises. Project outlines can only be submitted by consortia, i.e. groups of at least two organisations.

Individuals are excluded from IKI funding.

It is generally welcomed for the project to involve the private sector (beyond leveraging private funding) in the project (in particular as a target group). The private sector can be involved as a direct or indirect target group. Examples include improving the framework conditions for the private sector, developing and promoting green business models, involving the private sector in the project's exit strategy, consulting and training for companies as well as participation of company representatives in project workshops and events.

Private sector companies are thus eligible for funding in the IKI Large Grants. However, the project must not be aimed at profit maximisation. Please also note the specific requirements for implementing organisations defined in the funding announcement.

The private sector comprises all organisations that engage in profit-oriented activities and are predominantly privately owned. This includes financial institutions and intermediaries, national and multinational companies, small and medium-sized enterprises, co-operatives, individual entrepreneurs and agricultural businesses (e.g. farms). (Profit-oriented) state-owned enterprises that are organised under private law are treated as private sector organisations. Associations that represent the interests of private sector organisations or of state-owned companies organised under private law are also treated as part of the private sector. This applies irrespective of whether these associations are for-profit or non-profit organisations.

A preliminary review of project outlines is not possible. Furthermore, for reasons of a possible distortion of competition, no advice or assessment can be given on the structure or content of individual outlines by the IKI Office at ZUG gGmbH, nor by the responsible ministries or other public actors.

Two online seminars will be offered on 2 and 3 December 2025 to give interested organisations an idea of what makes a good project outline.

All partner countries must be ODA-eligible by the submission deadline (see List of ODA-eligible countries). The number of partner countries is to be limited to a maximum of five, unless the respective thematic priority is specifically orientated towards fewer partner countries. Project outlines that include more than five partner countries will not be considered in the selection process.

Regarding the selection of partner countries and the geographical approach (country setting), there may be specifications in the respective thematic priority descriptions (see the document Thematic and Country Priorities IKI Large Grants Call 2025). These specifications are binding for project selection. Deviations from the specified geographical approach of the respective thematic priority will lead to the exclusion of the project outline.

If the geographical approach is not further specified in the thematic priority, the following principles apply: Bilateral projects are possible, particularly in IKI priority countries, but should have a regional impact. Regional and global projects are sought exclusively in thematic priorities. Global projects covering different countries and more than one continent are only eligible in exceptional cases and if the added value is sufficiently justified.

Country priorities exclusively seek bilateral projects in the respective IKI priority country.

Country priorities are always aimed at bilateral projects. Thematic priorities can have a bilateral, regional, or global focus.

Bilateral means that a project is implemented in only one (ODA-eligible) country.

For regional projects, up to five countries in the same geographical region can be selected for project implementation. The countries in the respective geographical region do not necessarily have to be neighbouring countries.

Global projects can also include up to five countries but cover more than one continent. Global projects are only eligible in exceptional cases and in the event of particular added value, or if the respective thematic priority explicitly requires a global approach.

In any case, the geographical approach of the project outline (regional/bilateral/global) must meet the requirements defined in the respective thematic priority and be adequately and clearly documented (see also answer to question 5). The desired country setting must be defined in the project outline.

In general, all selection criteria of the funding announcement apply equally to thematic and country priorities. There are the following differences between thematic and country priorities:

Thematic priorities can be bilateral, regional, or global in scope. For project outlines submitted for bilateral thematic priorities, a letter of endorsement from the respective partner government must be submitted (see question 10). The German federal ministry for the environment, climate action, nature conservation and nuclear safety (BMUKN) then checks whether the letter of endorsement for the outline is sufficient as political backing or whether a further letter of endorsement is required later after the application has been submitted. The partner countries are selected by the implementing organisations, considering the geographical scope of the respective thematic focus (see questions 5 and 6). The selection must be reasonable and sufficiently justified.

Country priorities are developed in close cooperation with the IKI priority countries and are therefore always focussed bilaterally on a priority country. Political backing, i.e. obtaining the partner country's approval for the project, takes place as part of the selection process, which is carried out in consultation with the partner country. This means that no letter of endorsement from the partner country needs to be submitted in advance for the project outline for country priorities.

A project outline must focus on one thematic or country priority. Each thematic or country priority addresses a complex challenge. In order to meet this challenge, the project must be tailored to the desired goals of a particular thematic or country priority. Co-benefits that result from the project and can be assigned to another thematic or country priority are certainly welcome. However, this does not lead to any advantage or higher ranking in the assessment. In the assessment, emphasis is placed on a project being clearly tailored to one selected thematic or country priority.

A preparation phase is not obligatory. However, it is recommended if, among other things:

• the lead organisation has no direct experience in implementing IKI projects;
• project regions for local measures must be defined together with the partner countries;
• the proposed consortium with the selected local partners has not yet co-operated in a long term project
• the success of the project is particularly dependent on a cross-sectoral connection in the partner countries and the participation of local actors

Implementing organisations must explain in the project outline why a preparation phase is necessary or not necessary for the preparation of the project proposal or project offer. The expenses of the preparation phase are eligible for funding as part of the overall project and reduce the IKI budget for the implementation phase accordingly.

However, the duration of the preparation phase does not reduce the maximum term of the actual project. This means that the duration of the preparation phase is estimated in addition to the maximum project duration of eight years. The period and activities of the preparation phase must be clearly distinguished from the period and activities of the actual project (implementation phase). During the preparation phase, only measures of a preparatory nature are funded (e.g. baseline studies, assessment of the feasibility of work packages, safeguards and gender analyses, country visits, and stakeholder dialogues, also to strengthen cooperation with local governments and civil society). Measures to realise project objectives of the implementation phase are not yet being financed during this period.

For bilateral project outlines (project outlines with only one partner country), a letter of endorsement from the respective partner government must be submitted during the outline phase. At best, this should be available when the project outline is submitted. Otherwise, these letters of endorsement should be submitted upon request by the IKI Office. E-mails from the partner ministries confirming support for the project concept are also initially accepted with the outline. In this case, the letter of support must be submitted by the kick-off meeting at the latest. Non-submission of letters of endorsement must be plausibly justified. Plausible reasons include, e.g. national elections at the same time as the submission of the outline or climate-related disasters in the partner country.

Letters of endorsement should be issued by the national ministry responsible for project implementation in the sector concerned and/or by the ministry responsible for the UN FCCC climate negotiations or the CBD biodiversity negotiations.

This rule does not apply to the country priorities (priorities 1 to 3), as the respective partner ministry is directly involved in the selection of outlines, i.e. no letters of endorsement are required for country priorities.

A letter of endorsement can also be submitted for regional or global project outlines (project outlines with more than one partner country) during the outline phase; however, this is not yet required at this stage.

Further information on the requirements for the letters of endorsement, as well as a template for the letters of endorsement, can be found in the funding announcement under section 9.2 “Technical requirements for project outlines” and in Annex 4.

No, projects must be carried out in a consortium with at least two organisations. It is not necessary for a German organisation to be represented in the consortium. It is always encouraged for organisations from the target partner country to apply as consortium leaders or as consortium partner organisations.

Successful project implementation depends on relationships built on trust and fair treatment of all consortium partners involved. The framework conditions of the cooperation, i.e. the rights and obligations, are regulated by the consortium partners in an internal agreement (cooperation agreement). As far as possible, the main features of the cooperation agreement should already be agreed between the consortium partners during the preparation of the project outline see information sheet of the funding announcement, Annex II).

IKI funding may not be used to finance government activities. National governments are therefore generally not eligible organisations. This includes in particular the highest national public administration bodies in a country (national ministries and/or the presidential office of a country). Exceptions are only permitted in well-founded cases.

Regional administrative authorities and subordinate authorities are not generally excluded from funding/financing by the IKI but may be permitted following a case-by-case assessment. However, governments are generally not funded by the IKI. No IKI funding may be used to finance government activities. This includes in particular the highest national public administration bodies in a country (i.e. national ministries and/or the presidential office of a country).

Legally independent, state-owned public service companies are generally eligible for funding.

There is no limit to the number of outlines that a single organisation can be involved in or the number of outlines an organisation can submit as consortium lead.

The following applies to national and regional offices of international organisations:

1. Offices must be registered in a partner country of the respective IKI project and pay applicable taxes there, and
2. The national or regional office can make independent decisions and is largely independent of instructions from the “umbrella organisation” in the operational design and implementation of project funds. The following aspects must be taken into account when assessing independence:

• The operational decisions required for project implementation can be made by the organisation (or by the on-lending recipient for the defined work packages) without the need for approval from headquarters. This includes the planning and execution of activities, personnel decisions, reporting, procurement of materials, and services, etc.
• The organisation has an independent decision-making body (e.g. Executive Board, Supervisory Board).
• The grant/on-lending contracts and/or contracts in case of contracts are signed by the local office and the grant funds, on-lending funds or contract funds are managed independently from the head office. If the head office and the local office are part of a consortium, the local office needs to be authorised to conclude the on-lending contract with the main applicant.
• The budget of the local office does not include administrative costs, overheads, personnel, etc. for the head office.
• In cases where the head office must provide legal, financial and/or administrative support for the local office due to the structure of the organisation or country-specific circumstances and the other points mentioned above continue to apply, a plausible justification may lead to the country office being recognised as a local organisation by way of exception. In this case, the budget shares incurred for the head office are deducted from the local action share of the budget.

In contrast to the cases mentioned above, the following types of organisations can be distinguished from the above criteria and are generally not assessed as Local Action.

• Internationally interconnected organisations: Organisations that are linked to an international organisation through interrelated funding, contractual, governance and/or decision-making systems. This category does not include local and national organisations that are part of networks, federations or alliances, where these organisations maintain independent funding and governance systems in accordance with the above criteria.
• Multilateral organisations: Agencies of the United Nations (UN) and other multilateral organisations.
• International private sector organisations: Organisations that are run by private individuals or groups as profit-oriented companies that are not based in an implementing country and are active in one or more implementing countries. A distinction is made here between corporate structures and organisational forms that meet the above criteria of independence from the head office.

International organisations that do not meet these criteria cannot count their project budget share as local action, even if national personnel are employed in the project. Therefore, national offices of international organisations, such as UN agencies, GIZ, or KfW, embassies of other countries or the national offices of other bilateral donor countries do not count as local action.

For more information, please visit the IKI Website on the IKI local action regulation.

The respective minimum or maximum IKI funding volume differs according to the individual thematic or country priorities and is shown in the information on the individual thematic or country priorities. Exceeding or falling short of the IKI funding volume will lead to the exclusion of the outline. The budget planning should be realistic and comprehensible.

Furthermore, the amount of the planned average annual IKI funding volume should not exceed the average annual turnover of the last three financial years of the lead organisation. The total grant is decisive here, as the lead organisation receives this as the initial recipient. The average annual funding volume results from the planned total IKI financing volume and the planned project duration.

∅ annual funding volume: IKI total funding volume/years (project duration) ≥ ∅ applicant’s annual turnover 

Own funds usually refer to available financial resources that the lead organisation allocates from its own assets to finance the total eligible expenses of the project. Funds provided by the consortium partners are not classified as own funds, but as third-party grants. In the case of grants, an appropriate contribution in the form of own funds and the mobilisation of additional financial resources is generally a prerequisite for IKI financing. The amount of own funds that is appropriate can only be decided on a case-by-case basis. The appropriate amount depends in particular on the financial strength of the lead organisation. There is no fixed minimum amount for the own contribution. Financing the purpose of the grant is primarily the responsibility of the implementing organisations, which must therefore do everything they reasonably can in order to raise the necessary funds themselves. The full financing of measures from federal funds is only possible in exceptional cases.

In addition to own funds, external funds or third-party grants can be contributed. External funds are funds from the consortium partners or from private donors (e.g. companies, associations) who have an interest in the realisation of the project and provide the funds to finance the total eligible expenses. Confirmation from the donor that the external funds have been provided must be submitted in the second phase of the selection procedure (project proposal phase).

Third-party grants are exclusively funds provided by other public bodies for the project. Other public bodies include federal and state institutions organised under public law, federal corporations, institutions, foundations under public law and their associations, regardless of their legal form, and all EU institutions.

Only uncommitted funds for which verifiable financial flows arise during the project period can be credited as own funds in the budget.

Other contributions by the lead organisation, the consortium partners, the political partners or third parties in the form of non-cash contributions (e.g. existing personnel, in-kind contributions, infrastructure) are generally welcome but cannot be counted as own funds.

In principle, all expenses (personnel, material, and investment expenses) that are absolutely necessary and economically appropriate to achieve the purpose of the grant within the approved period are eligible for funding. These expenses must be presented in the budget plan.

The following expenses are not eligible for funding:

• If you are entitled to deduct input tax in accordance with Section 15 of the Value Added Tax Act, the (possibly pro rata) value added tax is not eligible for funding
• Expenses that cannot be substantiated with original receipts
• Expenses without proof of payment
• Unused discounts and rebates
• Expenses incurred outside the grant period
• Non-statutory insurance policies
• Expenses that cannot be clearly allocated to the project
• Expenses that result in subsequent reimbursements (e.g. pledge, rental deposit)
• Expenses for first-class flights
• Travel that is not directly linked to the project
• Miscellaneous and unforeseen expenses

In addition, the IKI exclusion criteria rule out certain activities from the IKI funding without exception if they are considered too risky for the environment and people (see exclusion criteria).

A fixed limit or percentage is not defined. However, if the estimated administrative or indirect expenses appear to be too high in relation to the direct expenditure, the lead organisation is regularly asked to provide evidence for further assessment.

The IKI supports projects with at least gender-responsive project planning and implementation (see IKI Gender Guidelines). The IKI also particularly supports projects with a gender-transformative approach.

Gender-responsive projects take existing gender norms, roles and relationships as well as the resulting inequalities into account in their planning. They plan their activities in such a way that they do not promote these inequalities in the project context and ensure that all people, regardless of their gender, can effectively participate in and benefit from the respective measures. Potentials are actively promoted.

Projects with gender-transformative approaches aim to address the causes of unequal treatment, such as social norms and unequal gender-specific roles, as well as unequal power structures. Their activities thus go beyond gender-responsive approaches, because they do not “only” ensure that people can effectively participate in and benefit from the measures of the project regardless of their gender.

For more information and examples of gender-responsive and gender-transformative approaches in the context of the IKI funding areas, see Annex 1 of the IKI Gender Guidelines.

The IKI distinguishes the term leveraging finance between mobilisation (direct leverage through investment of IKI funds) and catalysation (indirect leverage through the improvement of investment conditions). The Annex 6 of the OECD reporting directives is binding for the definition and monitoring of mobilising private finance. An example of a mobilisation mechanism that can be implemented in the project context is simple co-financing in the form of grants or loans that are conditioned to private sector co-financing or implemented via a results-based financing mechanism.

It should also be considered that concepts requiring fiduciary fund management in accordance with Section 44(3) of the Federal Budget Code (fund deposits) are not allowed for within the framework of the IKI Large Grants.

It is generally welcomed for the project to involve the private sector (beyond leveraging private funding) in the project (in particular as a target group). The private sector can be involved as a direct or indirect target group. Examples include improving the framework conditions for the private sector, developing and promoting green business models, involving the private sector in the project's exit strategy, consulting and training for companies as well as participation of company representatives in project workshops and events.

The private sector comprises all organisations that engage in profit-seeking activities and have a majority private ownership. This includes financial institutions and intermediaries, national and multinational companies, small and medium-sized enterprises, co-operatives, individual entrepreneurs and agricultural businesses (e.g. farms). (Profit-oriented) State-owned enterprises that are organised under private law are treated as private sector organisations. Associations that represent the interests of private sector organisations or state-owned companies organised under private law are also treated as part of the private sector. This applies irrespective of whether these associations are for-profit or non-profit organisations.