HomeIndustry SectorsFinance and PolicyInnovative climate investor fund launched to market

Innovative climate investor fund launched to market

This new fund facility is expected to boost economic growth while reducing CO2 emissions. telegraph.co.uk

In international news, the Dutch Minister for Foreign Trade and Development Cooperation, Lilianne Ploumen officially launched the Climate Investor One facility last week at the UN Climate Summit in Paris.

The new funding model was developed by the Dutch development bank, FMO, in partnership with specialist infrastructure firm, Phoenix InfraWorks, to further stimulate private sector investment into renewable energy projects in developing countries.

Ploumen commented: “It is the aim of the Dutch government to provide access to renewable energy for 50 million people in poor countries in 2030. This will not only benefit their well-being, but also the environment.

“Companies may be hesitant to invest in renewable energy projects in developing countries because of the high perceived risks. That’s why the Dutch government wants to co-invest and act as an underwriter for these types of much needed investments.”

Climate Investor One facility

According to a statement released by FMO, this facility “is a new approach to the funding of infrastructure, through which environmental impact, economic returns and operating infrastructure will be delivered in a faster and simpler manner.

“The facility is unique in the way it combines three investment funds into one facility to finance renewable energy projects at specific stages of the project lifecycle: the development stage, the construction stage, and the operational stage.”

In addition, the Climate Investor One facility has predicted the ability to avoid an estimated 1.5 million tonnes of CO2 emissions, the equivalent of 500,000 cars off the roads each year.

Attractive investment

“Minister Ploumen announced a €50 million contribution to augment a £50 million expression of interest from the UK government and US$75 million from FMO. This enables Climate Investor One to move to the next phase and attract participation of private investors in renewable energy projects in developing countries,” the Dutch Bank said in a statement.

Andrew Johnstone, Chief Executive Officer of Phoenix InfraWorks and Climate Fund Managers said: “Basic infrastructure is a necessary foundation stone of any healthy, vibrant society, and climate change is an unavoidable truth.

“Climate Investor One brings together the need to address climate change on a global basis with the provision of power in geographies where development is most needed.

“With the collaboration of Governments and the private sector Climate Investor One points the way to mobilising sustainable capital in a manner which affects people lives positively.”


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Ashley Theron
Ashley Theron-Ord is based in Cape Town, South Africa at Clarion Events-Africa. She is the Senior Content Producer across media brands including ESI Africa, Smart Energy International, Power Engineering International and Mining Review Africa.