The Green Climate Fund (GCF) signed an agreement that will enable FMO to implement GCF funded low-emission and climate-resilient projects in developing countries, with a focus on the private sector. With that agreement, FMO could submit its first project, Climate Investor One, to the Board, which was approved on Saturday, during the last day of the GCF 21 Board meeting, which took place in Bahrain.
FMO, accredited with GCF in October 2016, is committed to increasing its green investments to at least 40 per cent by 2020. GCF will capitalise on FMO’s experience in mobilising and enabling the private sector in developing countries towards low-emission and climate-resilient investments.
Javier Manzanares, GCF Executive Director ad interim, stated, “Partnering with FMO increases the ability of the Green Climate Fund to support private sector climate investment in developing countries. FMO’s nimble approach and experience in mobilising funds will be invaluable to GCF’s Private Sector Facility as it accelerates private sector engagement to provide climate solutions.”
Linda Broekhuizen, Chief Investment Officer of FMO, stated, “With the GCF partnership, FMO can provide blended finance solutions to accelerate far-reaching climate mitigation and adaptation projects that empower people in seizing opportunities to overcome climate change.”
GCF Board approves Investment in Climate Investor One (CIO)
CIO is a blended finance facility initiated by FMO and managed in partnership between FMO and the Sanlam Group of South Africa. Its innovative financing approach is designed to provide funding to each stage of a renewable energy projects lifespan: development, construction, and operations. With the support of GCF, CIO will be able to mobilise further commercial funds and build approximately 30 renewable energy projects over its lifetime, delivering an estimated 1,600+MW of additional capacity in the 11 target countries.
On this milestone, Mr. Andrew Johnstone CEO of Climate Fund Managers, the program manager to Climate Investor One said: “We are delighted to receive Board approval for this investment in Climate Investor One. The Green Climate Fund participation will facilitate scalability to CIO culminating in an enhanced contribution to mitigating climate change. This facilitates the attainment of national climate targets and crucially provides additional MW’s of energy capacity in countries in need of further electrification.”