Climate Investor Two, from Climate Fund Managers (of Climate Investor One, which reached final close at USD 850 million in 2019), comes from a consortium of Dutch development bank FMO, SNV Netherlands Development Organisation (SNV), World Wide Fund for Nature (WWF-NL), and Climate Fund Managers (CFM), which won the tender to manage the EUR 160 million Dutch Fund for Climate and Development (DFCD), awarded by the Dutch Government. Like Climate Investor One, Climate Investor Two is structured to finance projects across three stages: 1) a development fund funded by non-repayable donor contributions, 2) a construction fund, and 3) a re-financing fund.

Stage of Implementation

Climate Investor Two will focus on water, oceans and sanitation subsectors, including: municipal and industrial water and wastewater supply, desalination, bulk water supply, waste and wastewater to energy, and riverine and coastal ecosystem management and protection. Climate Fund Managers is currently fundraising towards a final close of Climate Investor Two to be reached within the next few years.

Actors Involved

  • Development finance institutions: DFIs are critical at all three stages of the fund – to provide donor capital in the form of development loans for the development fund, to provide first loss capital at the construction stage, and to de-risk the refinancing fund alongside institutional investors. DFIs also often provide guidance on climate adaptation screening and monitoring criteria.
  • Institutional investors: Institutional investors, such as pension funds and insurance companies, have few investments in infrastructure debt and none in low-income or lower middle-income countries. The Facility will offer new investable securities for institutional investors and local banks in low- and lower middle-income countries that will allow these investors to achieve a greater exposure to pre-operational, operational, and performance assets. Over time, the intended aim is to drive a transition to a more local and private investment market.
  • Local banks and FIs: Local banks and investors will be targeted in the re-financing stage. CFM’s goal is that through the re-financing process, local banks and investors may acquire the skills in the long-term to manage performance and operational risks of climate projects, enabling further lending or further risk adoption through construction financing over time.


  • Strong ecosystem of project developers: Climate Investor Two requires a strong project pipeline in the water sector in target countries. A strong ecosystem of project developers is critical to this criterion. Project pipeline can be supported by a favorable policy environment where it is feasible to engage private capital in water infrastructure projects and where there is sufficient climate risk information available to ensure the projects meet set climate adaptation criteria.
  • Moderate currency stability: The Fund makes investments in non-local currency, so a relatively stable currency environment is needed to avoid significant foreign exchange losses or hedging costs that would erode investor return. The ability to move capital in and out of the country without significant penalty or delay is also critical.

Applicable Countries

Climate Investor One – CFM’s first fund focused on energy investment has a total of 14 approved African countries by GCF to which it can direct GCF capital (Burundi, Cameroon, Djibouti, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Morocco, Nigeria Senegal, Tunisia, Uganda, Zambia). These countries – spanning all five African Union regions – represent a reference point for Climate Investor Two and are likely to have stronger than average ecosystems of project developers and relatively stable market conditions for investment.


This project has been developed in partnership with the Global Center on Adaptation


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