Climate Fund Managers has joined the Climate Bonds Initiative's Network Membership, strengthening efforts to channel institutional capital into climate projects across emerging markets, where financing gaps remain most acute. The membership grants the organization access to training on green, social, sustainability and sustainability-linked bonds, as well as transition finance and adaptation.
Climate Fund Managers operates across Africa, Asia and Latin America, using blended finance structures that combine public and private capital to reduce risk and attract institutional investors. “By working with the Climate Bonds Initiative and the European Commission, we aim to enable global fixed-income investors to access blended finance vehicles supporting climate mitigation and adaptation at scale in emerging markets, where financing gaps remain most acute,” said Andrew Johnstone, CEO of Climate Fund Managers.
UNLOCKING INSTITUTIONAL CAPITAL
The Climate Bonds Initiative, which runs the Climate Bonds Network, is a global standard-setting body in sustainable debt markets; the network includes more than 85 institutions, including banks, regulators and asset managers. By joining the network, Climate Fund Managers gains access to technical research, market intelligence and policy forums that influence green bond standards and taxonomies, alongside training.
“There is clear and growing institutional appetite to allocate capital to climate action,” Johnstone said. Its blended finance structures combine concessional and commercial funding to reduce perceived risk for institutional investors.
CLIMATE FUND MANAGERS' SCALE AND FOCUS
Climate Fund Managers currently manages more than USD 2.8 billion in assets and is targeting an additional USD 4 billion. The organization's blended private equity and private credit investment vehicles focus on major climate mitigation and adaptation sectors, including renewable energy, energy transition and green hydrogen, water, waste and maritime, and sustainable cities and the built environment. The organization currently supports 50 active projects through its Climate Investor One, Two and Three funds, and has expanded into private credit through the GAIA Climate Loan Fund.
EMERGING MARKETS POTENTIAL
“70% of the climate investments we need to make will be in emerging markets,” said Climate Bonds Initiative CEO Sean Kidney, adding that Climate Fund Managers “is making Africa and South Asia investible for the world’s pension and insurance funds.”
Johnstone said the aim is to broaden access to fixed-income investors by working with the Climate Bonds Initiative and the European Commission.
CLIMATE FUND MANAGERS' FOOTPRINT
Climate Fund Managers invests across Africa, Asia and Latin America through blended private equity and private credit vehicles.