The climate investment fund manager, Climate Fund Managers (CFM), has announced a financing round for numerous projects in the sanitation, water, biodiversity and energy sectors, which will have a positive impact on society and the environment. The US$675 million multi-investor fund is the first closing of its $1 billion Climate Investor Two (CI2) fund. Below is the company's press release.
Climate Investor Two (CI2) is Climate Fund Managers’ (CFM) second climate-focused, blended finance initiative following the establishment of its first initiative: Climate Investor One (CI1). With a USD 1 billion target fund size, CI2 will provide expertise, technology, and financing to infrastructure projects in emerging markets by mobilizing private sector financing at scale, supported by catalytic public sector donor funding. Building on CI1’s focus and expertise in renewable energy, CI2 will add a focus on water, sanitation, and oceans infrastructure. These sectors are fundamental to human life and economic development but are also the medium through which the effects of climate change will be felt on earth. CI2 provides expertise, technology, and financing to projects that help vulnerable societies mitigate and adapt to these global climate changes.
Formed in partnership with and as a part of the Dutch Fund for Climate and Development (DFCD), CI2 uses the same blended finance structure as CI1. This structure simplifies the manner in which capital is deployed and reduces complexity by delivering an innovative “whole-of-life” solution that provides a single financing source for each of the respective development, construction, and operational phases of a project’s lifecycle. Through its CI2 Development Fund, CI2 provides early-stage project development services and financing. Through its CI2 Construction Equity Fund, CI2 provides equity finance that accelerates project construction. With this approach, CI2 is designed to implement more projects faster, delivering positive environmental and social impact sooner.
Building on the comprehensive support of the Government of the Netherlands, including the Ministry of Foreign Affairs through the Dutch Fund for Climate and Development, commercial investors (KLP, IMAS Foundation, Sanlam, Aegon), Dutch public sector bank BNG Bank, a development finance institution (FMO) and Donors (European Commission and Nordic Development Fund) have committed to being the cornerstone support for CI2. This First Closing highlights and re-affirms a broad public and private sector commitment to innovative climate change solutions.