Climate Fund Managers Raises $1.06B for World’s Largest Climate Adaptation Fund
Climate Fund Managers (CFM) has closed its Climate Investor Two (CI2) fund at USD 1.065 billion, positioning it as the largest climate adaptation infrastructure fund focused on emerging markets. The vehicle exceeded its USD 1 billion target, attracting an additional USD 190 million in commitments and a EUR 205 million guarantee from the European Union’s EFSD+ programme.
Launched in 2019, CI2 tackles the significant climate adaptation financing gap in developing regions, estimated by the UN Environment Programme at up to USD 366 billion annually. Through a blended finance model, the fund combines public and private capital to support water, sanitation, and ocean-related infrastructure across Africa, Asia, and Latin America.
Among its innovations is the Bridge-to-Bond mechanism, developed with Sanlam Investments and backed by a European Commission guarantee. The structure provides short-term bridge financing that transitions into a climate bond, broadening institutional participation in adaptation-focused investments.
CFM’s successful close underscores the growing potential of blended finance to mobilise private capital toward climate resilience and sets a benchmark for scalable, impact-driven infrastructure investment in emerging markets.
Source:
A.M.
