Climate Investor Two

A case study on Climate Investor Two, a fund managed by a consortium including Climate Fund Managers and FMO to manage the EUR 160 million Dutch Fund for Climate and Development, focusing on water, oceans, and sanitation infrastructure in low- and lower middle-income countries.

• Climate Investor Two is managed by a consortium consisting of the Dutch development bank FMO, SNV Netherlands Development Organisation (SNV), World Wide Fund for Nature (WWF-NL), and Climate Fund Managers (CFM). The consortium won a tender to manage the Dutch Fund for Climate and Development (DFCD), which was awarded by the Dutch Government and totals EUR 160 million.
• The fund utilizes a three-stage financing structure: a development fund supported by non-repayable donor contributions, followed by a construction fund, and finally a re-financing fund.
• Climate Investor Two targets the water, oceans, and sanitation subsectors. Specific areas of focus include desalination, bulk water supply, municipal and industrial water and wastewater supply, waste and wastewater to energy, and the protection and management of coastal and riverine ecosystems.
• The fund aims to attract institutional investors, such as insurance companies and pension funds, and local banks in low- and lower middle-income countries by offering new investable securities. The long-term goal is to transition toward a private and local investment market where local banks gain the skills to manage operational and performance risks of climate projects.
• Successful implementation requires a strong ecosystem of project developers, a favorable policy environment for private capital in water infrastructure, and moderate currency stability to prevent hedging costs or foreign exchange losses from eroding returns, as investments are made in non-local currency.

APA

Climate Policy Initiative (2021). Climate Investor Two. https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/climate-investor-two-2/

Chicago

Climate Policy Initiative. Climate Investor Two. 2021. https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/climate-investor-two-2/.

Wikipedia

{{cite report |author=Climate Policy Initiative |title=Climate Investor Two |date=16 September 2021 |url=https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/climate-investor-two-2/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{climatepolicyinitiative2021climate, author = {{Climate Policy Initiative}}, title = {{Climate Investor Two}}, institution = {Climate Policy Initiative}, year = {2021}, month = sep, url = {https://www.climatepolicyinitiative.org/gca-africa-adaptation-finance/case_studies/climate-investor-two-2/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }