– Climate Fund Managers (CFM) announced the final close of Climate Investor Two (CI2) at USD 1.065 billion.
– The fund exceeded its USD 1 billion target with new commitments of USD 190 million and a EUR 205 million EFSD+ guarantee from the European Union.
– CI2 is now the largest climate adaptation infrastructure fund focused on emerging markets globally.
– The fund blends public and private capital to co-develop water, waste, and ocean infrastructure projects across Africa, Asia, and Latin America.
– It aims to address the adaptation finance gap in developing countries, estimated at USD 194–366 billion per year by UNEP.
– Formed in 2019 with the European Commission and the Dutch Fund for Climate and Development, CI2 mobilizes capital for underfunded areas of climate action.
– Investor base includes DFIs, multilateral finance institutions, public sector banks, and institutional investors (asset managers, pension funds, insurers).
– Introduction of an innovative Bridge-to-Bond mechanism with Sanlam Investments
– Bridge loan from Sanlam Alternative Investments backed by an EU guarantee
– CEO Andrew Johnstone emphasized the need to prioritize adaptation alongside mitigation and highlighted CI2’s role in expanding access to climate finance.
– Sanlam’s Mark Moorhouse stressed the partnership’s impact in developing economies and the importance of innovative sustainability-driven financing models.
– CFM has also launched Climate Investor Three (CI3), targeting USD 750 million–1 billion for the energy transition and green hydrogen.
