The impact of climate change continues to harm vital natural systems and the lives of millions of people, especially in developing countries. Extreme weather patterns, diminishing water resources, failing crop yields and weakening marine ecosystems are amongst the most pronounced effects. Greenhouse gas (GHG) emissions are now also heading in the direction of pre-pandemic levels following a temporary decline caused by national lockdown measures and global economic slowdown. We are set to see the warmest 5 years on record – in a trend which is likely to continue – and are not on track to meet the agreed targets to keep the global temperature increase well below 2° C or at 1.5° C above pre-industrial levels.

Climate Fund Managers (CFM), a pioneering Dutch investment fund manager, focuses on financing projects that help vulnerable communities in developing countries adapt to, as well as mitigate, the effects of climate change. The financing facilities under the management of CFM, Climate Investor One (CI1) and Climate Investor Two (CI2) use public and private capital to help developing countries transition to cleaner, more efficient use of energy, water and sanitation systems. CFM’s approach is based on the recognition that climate change affects all aspects of human, social, and economic development. The European Union has contributed with EUR 30 million to CI1, split across the facility’s Development Fund and Construction Equity Fund.

During the current crisis, CI1 has continued to deliver renewable energy infrastructure projects throughout this period, with projects entering construction in Djibouti (60 MW, wind), India (38 MW, wind), Vietnam (48 MW wind; 78 MW wind) and projects in Uganda (42 MW, run of river) and Pan-Asia (450 MW, commercial and industrial solar) continuing with construction. CI2 projects remain in the early life-cycle phase of development, with plans to progress in the next few months.

CFM is delivering on key milestones, including supporting community-led development programmes near active project sites to ensure there is an effective response to communities needs in a meaningful way. By offering emerging markets more resilient and sustainable livelihoods, CFM is empowering communities by helping populations adopt more innovative and nature-based agricultural livelihoods, helping boost income, enhance food security and reduce disaster risk. 

Achwa II hydroelectric power station, Uganda: weir and canal intake, under construction