Climate Fund Managers (CFM) has launched a new initiative, the Climate Investor Three (CI3) fund, aimed at accelerating the energy transition and green hydrogen projects in emerging markets. With an initial €150 million in commitments, CI3 seeks to harness both public and private sector investments to drive large-scale climate solutions, particularly in Namibia and South Africa.
What’s New?
CI3’s innovative approach leverages blended finance, using a combination of public and private capital to lower investment risks and encourage the development of green energy solutions. The fund will primarily focus on green hydrogen, which is seen as a vital component in decarbonizing sectors like transport and heavy industry.
The fund adopts a family-of-funds structure, channeling investments into projects or country-specific funds such as:
- SDG Namibia One: Partnered with Namibia’s Environmental Investment Fund (EIF) and Invest International, this fund is set to enhance Namibia’s green hydrogen sector.
- SA-H2 Fund: Focused on South Africa’s energy transition, this fund is supported by multiple entities, including Invest International, Sanlam Limited, and the Development Bank of Southern Africa (DBSA).
Why It Matters
Green hydrogen, produced through the electrolysis of water using renewable energy sources, is gaining traction as a sustainable energy solution. The fund’s strategic focus on Namibia and South Africa is significant, as both countries are rich in renewable energy resources and are uniquely positioned to drive low-emission, climate-resilient growth through green hydrogen projects.
Namibia, for instance, holds vast untapped potential for large-scale green hydrogen production, benefiting from abundant solar and wind energy. South Africa, with its established infrastructure and energy needs, is poised to transition from its coal-based energy systems to cleaner alternatives.
Industry Insights
“Green hydrogen holds immense potential to drive sustainable development in emerging markets and support the global energy transition,” said Hans Docter, co-CEO of Invest International. “For this reason, we are proud to partner with CFM in launching Climate Investor Three as a blended finance vehicle.”
Sebastiaan Surie, Head of Hydrogen at CFM, emphasized the importance of collaboration, stating, “Green hydrogen is a cornerstone of the global energy transition. With a strong project pipeline in Namibia and South Africa, we invite public and private investors to join us in shaping the future of energy.”
The Road Ahead
Through CI3, CFM aims to transform Namibia and South Africa into global green hydrogen leaders, creating sustainable, climate-conscious economies while meeting ambitious global climate goals. Benedict Libanda, CEO of Namibia’s Environmental Investment Fund (EIF), highlighted the importance of global partnerships in scaling up green hydrogen, noting, “Collaboration among stakeholders is essential to overcome technological challenges and scale up production and export.”
This strategic fund signals a commitment to investing in sustainable energy solutions in emerging markets, not just for environmental benefits but also as a driver of economic growth in the global south.
The Bottom Line: CFM’s €150 million Climate Investor Three fund is a critical step towards scaling green hydrogen production in key emerging markets, with a focus on enhancing the energy transition in Namibia and South Africa. The fund’s model demonstrates how blending public and private investments can catalyze the global shift to cleaner energy sources while boosting economic opportunities in underdeveloped regions.
