"Sustainability-focused asset manager partners with CFM for climate crisis response"

🌍 Thrilled to share news that Climate Investor Two (CI2) has reached its final close at USD 1.065 billion, becoming the largest climate adaptation infrastructure fund focused on emerging markets. 🌱 CI2 mobilises public and private capital to invest in and co-develop water, waste and oceans infrastructure across Africa, Asia and Latin America, driving real impact where it’s needed the most. 💧🌊️ We at NDF are proud to have been among the first investors back in 2021, committing USD 15 million to get this journey started. It’s been inspiring to follow the evolution of CI2 and looking forward to witnessing its growing impact in the upcoming years. ♻ 🔗 Learn more about NDF’s role in the project: https://shorturl.at/JrnVj

Climate Fund Managers (CFM) closes Climate Investor Two at USD 1.065bn — the world’s largest #climate adaptation #infrastructure fund for #emerging markets. The fund focuses on #water, #waste and #oceans projects across Africa, Asia and Latin America, pioneering a new Bridge-to-Bond mechanism with Sanlam Investments. https://lnkd.in/gzVx64C3

Climate Fund Managers (CFM), a climate-focused blended finance investment manager, announced Monday the final close of its second blended finance facility, Climate Investor Two (CI2), at $1.07 billion. https://lnkd.in/gDs5QDU5

This looks interesting - https://lnkd.in/gF-WyTUg "....• Climate Investor Two surpasses $1 billion target to become the largest adaptation infrastructure fund in emerging markets. • Backed by $190 million in new commitments and a €205 million EU guarantee under the EFSD+ program. • New Bridge-to-Bond model enables bond investors to access adaptation infrastructure assets for the first time. The Hague-Based Climate Fund Managers Closes Landmark Adaptation Fund Climate Fund Managers (CFM) has closed its second blended finance facility, Climate Investor Two (CI2), at $1.065 billion, making it the largest climate adaptation infrastructure fund dedicated to emerging markets. The fund exceeded its original $1 billion target following $190 million in new investor commitments and a €205 million ($223 million) guarantee from the European Union’s European Fund for Sustainable Development Plus (EFSD+). The close establishes CFM as a central player in the climate adaptation finance landscape, a field still dramatically underfunded despite rising physical climate risks. CI2 targets water, waste, and oceans infrastructure projects across Africa, Asia, and Latin America—regions most vulnerable to climate change yet least served by capital flows...."

In climate finance, capital flows towards credibility. Sub-Saharan Africa represents a USD193 billion renewable energy opportunity by 2031, with potential internal rate of returns of between 15% to 21%. Yet the continent attracts just 3% of global energy investment. This gap exists because of a trust deficit. Not because of a lack of innovation or opportunity. Development Finance Institutions (DFIs) hold the keys to climate capital, but they have struggled to find reliable African partners who can navigate local complexities while delivering global-standard returns. Most external investors incorrectly price African risks. And most local players lack international credibility. Helios Investment Partners found the solution. Over two decades, they have invested in some of the continent’s biggest companies including Helios Towers, Vivo Energy, Interswitch Group, Equity Bank Limited and Continental Outdoor Media. Each success has built credibility with both African markets and international investors. In 2024, their CLEAR Fund closed USD200 million by proving that African-led leadership with global backing is the competitive advantage that multiplies climate capital. What's in today's newsletter: • Helios Investment Partners’ CLEAR Fund raised USD200 million by combining African leadership with global Development Finance Institution (DFI) partnerships • How two founders with African roots and international experience became the X factor development banks are betting on • A replicable model for African General Partners (GPs) looking to unlock climate capital through trust-building PS - Read ‘Why Development Banks Are Lining Up Behind This African-Led Climate Fund’ here https://lnkd.in/dSyHw7nd

Mindset shift is an imperative Such an indictment “Development Finance Institutions (DFIs) hold the keys to climate capital, but they have struggled to find reliable African partners who can navigate local complexities while delivering global-standard returns. Most external investors incorrectly price African risks. And most local players lack international credibility.” What are DFIs for if they are not strengthening financial and business ecosystems? Do local players lack international credibility without DFIs? Is there built in dependence? Thanks to the OP for always laying out why the unimaginative, flawed system is not working. ***** We know how to provide solutions to the problems identified and we will work with DFIs but not depend on them to lead the way.

Excellent points. This gets to the heart of the climate finance challenge in Africa. Capital doesn't just need a project; it needs a trusted vehicle. The historical disconnect has been that local innovators had the projects, while international DFIs controlled the capital, with no credible bridge between them. Helios' success demonstrates that credibility is a currency in itself, built through a track record of world-class governance, transparent reporting, and consistent returns. Their model proves that combining deep continental expertise with global institutional standards is not just a competitive advantage—it's the essential formula for unlocking climate capital at scale. The conversation needs to move from ""Why isn't Africa getting funded?" to "How do we replicate these trusted financial structures across the continent?" This is the key to closing that 3% investment gap. #ClimateFinance #ClimateAction #Environment #Grants

Brookfield announced its $20 billion Global Transition Fund II which is critically important for restoring climate finance credibility in a period of uncertainty and skepticism, especially following the disbandment of the UN Net Zero Banking Alliance. The fund demonstrates that substantial, transparent, and action-oriented financial commitments are possible from the private sector, even as large voluntary coalitions collapse or weaken their standards. Why the Fund Matters? - The fund sets a tangible benchmark for scale, moving over $20 billion into direct investments in clean energy, renewable infrastructure, and transition technologies worldwid. - Brookfield’s rapid allocation of funds, with over $5 billion already invested in global energy projects, provides measurable and trackable outcomes, strengthening accountability and transparency in climate finance. - Major institutional investors—including sovereign wealth funds and first-time climate investors—contributed to BGTF II, signaling continued trust in the potential for scalable, profitable low-carbon investment, despite industry-wide setbacks. Impact on Climate Finance Credibility - Unlike voluntary initiatives that failed due to political pressure, regulatory uncertainty, and lack of enforcement, Brookfield’s fund represents a shift toward markets where real capital drives concrete decarbonization. - The fund’s diverse investor base and project targets—spanning renewables, battery technologies, and energy transition in emerging markets—illustrate how private finance can pursue credible climate outcomes outside alliance frameworks. Brookfield’s new fund, therefore, helps repair climate finance credibility by backing major commitments with robust action. Link: https://lnkd.in/dX8aupbv

Sustainability-linked bonds offer investors a way to align their investments with measurable environmental outcomes, while also serving as a test of both government policy credibility and environmental ambition, according to Ninety One. https://lnkd.in/ettafJQv

The Green Climate Fund (GCF) is a financial mechanism of the United Nations Framework Convention on Climate Change (UNFCCC), mandated to support developing countries in their climate action efforts. Based on the latest available information, the next meeting of the GCF Board is scheduled to be: Forty-third meeting of the GCF Board (B.43): Date: October 27 - 30, 2025 Location: Songdo, Incheon, Republic of Korea The GCF's Role in Accelerating Climate Finance Projects The GCF plays a crucial role in accelerating climate finance projects by aiming to promote a "paradigm shift" towards low-emission and climate-resilient development pathways in developing countries. Its key functions in accelerating climate finance include: Mobilizing and Delivering Capital at Scale: As the world's largest dedicated climate fund, the GCF mobilizes financial resources from developed countries and channels them to developing countries through a diverse range of financial instruments, including grants, concessional debt, equity, guarantees, and insurance. This flexibility helps to structure financing to meet the specific needs of projects and investors. De-risking and Crowding-in Private Finance: The GCF uses its public funds to improve the risk-reward profile of climate-smart investments, which helps to "crowd-in" or mobilize significantly larger amounts of private sector investment for climate projects, especially in challenging areas like adaptation, nature-based solutions, and vulnerable regions (Least Developed Countries - LDCs, Small Island Developing States - SIDS). Country-Driven Approach and Direct Access: The GCF follows a country-driven approach, meaning developing countries lead the programming and implementation. It prioritizes Direct Access, which allows national and sub-national entities in developing countries to receive and manage GCF funds directly, bypassing international intermediaries and strengthening country ownership and capacity. Capacity Building and Readiness Support: The Readiness and Preparatory Support Programme (Readiness Programme) is the GCF's largest funding source for climate capacity building. It assists developing countries in: Translating their national climate plans (like NDCs) into fundable investment proposals. Strengthening their institutional capacity to access, manage, and monitor climate finance effectively. Focus on Transformational Impact: The GCF's investment framework targets projects that have the maximum potential for a paradigm shift towards low-carbon and climate-resilient sustainable development across key transition areas, such as energy, land use, infrastructure, and human security. The Fund is mandated to maintain a 50:50 balance between mitigation and adaptation investments over time. #Climate_change #GCF #Adaptation #Mitigation