According to a July 2022 Dutch Entrepreneurial Development Bank (FMO) press release, a new $145 million investment by FMO and Climate Fund Managers (CFM), called Climate Investor 2 (“CI2”), has been approved by the Green Climate Fund (GCF). GCF is the world’s largest climate fund. The purpose of the fund is to develop and build climate-resilient infrastructure projects in developing countries.
Accelerating investments in climate preservation projects
“We are very happy to be building on what has been a promising and rewarding initiative. This next chapter will allow us to further accelerate investments in low-emission and climate-resilient water, sanitation, and ocean projects in countries which have the potential to make good progress on climate adaptation and mitigation quickly and efficiently,” said Huib-Jan de Ruijter, Chief Investment Officer at FMO.
Investment sectors
According to the communiqué, the sectors targeted include water, sanitation, transport and the ocean economy and the 11 African countries concerned out of a total of 19 developing economies are: Botswana, Djibouti, Côte d’Ivoire, Kenya, Madagascar, Morocco, Namibia, Nigeria, Sierra Leone, South Africa, and Uganda.
Unlocking capital from the private sector
“The unique blended finance structure of CI2 is tailored to unlock capital from the private sector in the water, sanitation and oceans space, leveraging GCF’s catalytic investments. As these sectors usually do not attract private sector investments in developing countries. GCF’s participation not only provides scarce developmental capital during the initial phases where perceived risks are at the highest level, but also during the high-risk construction stage,” said Henry Gonzalez – Deputy Executive Director at GCF.
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