Climate-focused blended finance investment manager Climate Fund Managers (CFM) has closed its second climate investment vehicle with more than US$1 billion in commitments, marking what it calls the world’s largest adaptation-focused infrastructure fund for developing economies.
Created in 2019 alongside the European Commission and the Dutch Fund for Climate and Development, the Climate Investor Two (CI2) fund is designed to close the widening gap in global adaptation finance, which is estimated by the UN Environment Programme at up to US$366 billion a year. To do this, the fund blends public and private money to support projects through both early-stage development and construction, using concessional financing to lower investment risk.
CI2 exceeded its goal following US$190 million in new pledges and a €205 million guarantee from the EU. The facility will channel this capital into water, waste, and ocean-related infrastructure projects across Africa, Asia, and Latin America – targeting communities most exposed to climate risks.
Andrew Johnstone, CEO of CFM, said:
“While climate mitigation remains critical in the race to end the climate crisis, adaptation must be an equal priority. Closing Climate Investor Two at more than US$1 billion in a challenging environment is a major milestone that highlights investor appetite for adaptation and our ability to structure compelling opportunities in this space.”
CFM said CI2 is expected to provide access to clean water and sanitation for 16.5 million people and restore or protect more than two million hectares of ecosystems by the end of its term.
Since its initial close in 2021, CI2 has backed 25 projects worth US$339 million, including desalination plants in Kenya and Thailand, waste-to-energy ventures in Africa and Asia and a major debt-for-nature swap in Ecuador’s Galápagos Islands.The fund’s investor base spans development banks, multilateral agencies and institutional investors.
CI2 follows CFM’s earlier renewable-energy fund and precedes a third facility targeting green hydrogen and energy transition projects.
