Climate Investor Two

Climate Investor Two is a fund managed by a consortium including Climate Fund Managers and FMO to deploy EUR 160 million from the Dutch Fund for Climate and Development. It utilizes a three-stage financing structure—development, construction, and re-financing—to target water, oceans, and sanitation subsectors. The fund aims to attract institutional investors and local banks into low- and lower middle-income countries by offering investable securities and building local capacity to manage climate project risks. Success depends on a strong ecosystem of project developers, favorable policy environments, and moderate currency stability in target countries.

• Climate Investor Two employs a three-stage financing model consisting of a development fund supported by non-repayable donor contributions, a construction fund, and a re-financing fund.
• The fund targets the water, oceans, and sanitation subsectors, specifically including 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 seeks to increase the participation of institutional investors and local banks in low- and lower middle-income countries by providing new investable securities and helping local entities develop skills to manage operational and performance risks of climate projects.
• Operational success requires a strong pipeline of project developers, a policy environment that allows private capital engagement in water infrastructure, available climate risk information, and a stable currency environment to prevent foreign exchange losses.
• Climate Investor Two uses the 14 African countries approved by the GCF for Climate Investor One as a reference point for target markets due to their relatively stable conditions and developer ecosystems.

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} }