Funds

Climate Investor Two (CI2) is CFM’s second blended finance facility, delivering water, sanitation, and oceans infrastructure projects in emerging markets.  Established in 2019, the fund reached its third close on 2 November 2023 with USD 875 million in commitments and is targeting a final close of USD 1 billion by March 2025.

CI2 employs a mix of public and private-sector funding as well as commitments from development finance institutions (DFIs), all in mutually beneficial and complementary ways.

Public-sector donors fund the development stage of the projects, which typically cannot be financed by private-sector investors. Donors also play a key role in mobilising private-sector capital during the construction stage of the project, where risks are better understood and financial returns can be achieved.

CI2 was formed in partnership with Dutch Fund for Climate and Development (DFCD) and the European Commission to mobilize private sector investment at scale in water, waste management and oceans infrastructure in CFM’s focus markets of Latin America, Africa and Asia. CI2 is supported by multiple public and private sector organisations, including development finance institutions, multilateral finance institutions, banks and other commercial investors from across the globe. To date, the Fund has committed c. USD 205 million to 15 projects including waste-to-energy platforms in South Africa and Thailand, desalination initiatives in Kenya and Thailand and pan-Africa and Intra-Asia green shipping companies. It has also implemented the world’s largest debt-for-nature conversion in Ecuador to protect one of the planet’s most important ecosystems: the Galapagos Islands.

Climate Investor Three (CI3) is CFM’s third blended finance facility, focused on the global energy transition and green hydrogen sectors in emerging markets.  The fund was formed on 12 February 2025 with EUR 150 million in commitments from European donors. It is targeting a final close by end 2027.

CI3’s blended finance model balances risk, enabling public and private sector investors to access the rapidly growing energy transition and green hydrogen markets at a risk-return profile aligned with their mandates.

CI3 is structured as a family of funds investing across the energy transition and green hydrogen value chain. CI3 is a feeder fund which may invest directly into projects but may also invest into country-specific underlying funds. These country-specific funds currently include:

• SDG Namibia One (also known as CI3 Namibia): an energy transition and green hydrogen fund in partnership with the Environmental Investment Fund of Namibia (EIF) and Invest International to incubate Namibia’s energy transition and green hydrogen sector markets.
• SA-H2 Fund (also known as CI3 South Africa): an energy transition and green hydrogen fund in partnership with Invest International and supported by Sanlam Limited of South Africa, the Development Bank of Southern Africa (DBSA), and the Industrial Development Corporation of South Africa (IDC), to promote the development of South Africa’s energy transition and green hydrogen sector markets.

Green hydrogen, produced through water electrolysis using renewable energy, is a key enabler of the global energy transition. Its versatility and portability make it essential for decarbonising hard-to-abate sectors such as transport and industrial production, key contributors to global CO2 emissions. Emerging markets like South Africa and Namibia, with their abundant renewable resources and competitive production costs, are well-placed to lead the sector, transforming local industries and driving low-emission, climate-resilient economic growth.

Pretoria, 20 June 2023: Today, during the visit of Prime Minister Mark Rutte from the Netherlands and Prime Minister Mette Frederiksen from Denmark to President Cyril Ramaphosa, a Heads of Agreement has been concluded with the intention to launch a new ‘SA-H2 Fund’ (SA-H2). SA-H2 is an innovative blended finance fund, that will facilitate and accelerate the development of a green hydrogen sector and circular economy in South Africa. The Fund is supported by Climate Fund Managers (CFM) and Invest International B.V. (II) of the Netherlands, Sanlam Limited of South Africa (Sanlam), the Development Bank of Southern Africa (DBSA), and the Industrial Development Corporation of South Africa (IDC), in collaboration with other strategic partners.

Cape Town, 5 March 2024: The Southern African Power Pool (SAPP), in partnership with the Southern African Development Community (SADC), today announced the appointment of climate-centric blended finance fund manager Climate Fund Managers (CFM) to manage its Regional Transmission Infrastructure Financing Facility (RTIFF), a USD 1.3 billion target facility focused on improving strategic interconnection and cross-border energy transmission in the Southern Africa region.