Climate Investor One (CIO) is a blended finance facility which invests in solar, wind and run-of-the-river hydropower projects across global emerging countries. The facility is managed by Climate Fund Managers (CFM) and comprises a Development Fund and a Construction Equity Fund. Domiciled in The Hague, CFM has regional offices in Cape Town and Singapore. CIO may expand its presence by opening local project offices when needed.
CIO is currently active in the development and construction of projects in Morocco, Nigeria, Uganda, Tanzania and Djibouti in Africa, as well as Nepal, India, Philippines, Vietnam, Myanmar and a pan-Asia platform in Asia. Except for Cambodia, all these countries are eligible for green certification by the Dutch government.
Triodos Groenfonds’ equity investment in CIO’s Construction Equity Fund contributes to the construction of approximately 30 utility-scale energy projects in across global developing markets. The expected portfolio projects will generate more than 5,100 GWh per year of clean electricity; enough to supply around 13 million households per year. The aggregate expected carbon emission savings amount to 1.9 million tonnes CO2 per year.
Full cycle finance
The Climate Investor One investment proposition is unique, financing renewable energy projects through the full cycle. It finances early stage development through the Development Fund, construction through the Construction Equity Fund, and the operational phase through the Refinancing Fund. As each risk phase (from development to operation) is ring-fenced in a separate fund, CIO can create investment vehicles that meet the different investors’ risk appetite.
CFM is strongly committed to providing positive social and economic impact for the communities where its projects are built. This is shown by the allocation of funds specifically for community development throughout the entire lifecycle of the project:
- 4% of the development funds are allocated for community development opportunities which are identified through a community needs assessment;
- During the construction phase, part of the construction budget (between 0.35 and 0.5% and based on the total construction cost) is spent on community benefits, spread over the construction period; and
During the operation period, 1% of annual operating revenues is allocated to community development.
CFM has a particularly strong commitment to gender equality. It applies a ‘gender’ lens to investing, recognising that men and women experience the effects of climate change and (lack of) access to energy differently and disproportionately. It therefore developed a dedicated gender integration action plan, which outlines its commitments at company level (gender policy, network and training) and project level (gender assessment, recruitment and stakeholder engagement).
Community development programmes often include gender-specific initiatives that target women in governance, as employees and as entrepreneurs.
Explore our impact report ‘Accelerating the energy transition’ to find out more about our role as investor in the energy transition and system transformation. The report presents our 2019 results in a context of numbers and stories and showcases our mission to make money work for positive change.