Impact

The funds managed by CFM are designed to initiate and sustain a transformative shift in climate change adaptation and mitigation throughout emerging markets. CFM tracks the impact of the investments using a range of climate, people and financial indicators. For clean power projects, we measure the overall volume of greenhouse gas emissions that are avoided, along with the equivalent number of people served, the number of direct and indirect jobs created, and the catalytic effect. This section of our report provides an overview of the impacts achieved by our projects.

Climate impact

At Climate Fund Managers we believe in the renewable energy transition as the great enabler of economic development and rural resilience, a weapon in the fight against climate change and, not insignificantly, a solid investment opportunity.

Avoided GHG emissions (tCO2eq/yr)
719,160
= 43,538 Tree seedlings grown for 10 years
Installed renewable energy capacity (MW/yr)
226
=  752,667 Individual residential solar panels
Renewable power production (GWh/yr)
1,288
=  32,199,525 Electric car charges
Avoided GHG emissions (tCO2eq)
1,563,812
= 94,673 Tree seedlings grown for 10 years
Installed renewable energy capacity (MW)
765
= 2,550,667 Individual residential solar panels
Total renewable power production (GWh)
2,942
= 73,541,191 Electric car charges
Avoided GHG emissions (tCO2eq/yr)
1,476,477
= 89,386 Tree seedlings grown for 10 years
Installed renewable energy capacity (MW)
1,237
= 4,123,333 Individual residential solar panels
Renewable power production (GWh/yr)
2,782
= 69,550,000 Electric car charges

Climate impact investing in emerging markets matters because these regions often face significant climate-related challenges, such as vulnerability to extreme weather events and limited access to clean energy, requiring targeted investments to mitigate climate risks, promote sustainable development, and unlock economic opportunities.

Investing in renewable energy projects in emerging markets helps combat climate change by providing clean and sustainable energy sources, reducing greenhouse gas emissions, promoting economic development, and fostering resilience in vulnerable communities.

Investing in renewable energy in emerging markets has positive impacts by reducing carbon emissions, mitigating climate change, promoting sustainable development, creating green jobs, improving energy access, and enhancing the resilience of communities to climate-related challenges.

People impact

Jobs
1,641
People Served
1,905,888
= 2x the population of Amsterdam
Jobs
7,500
People Served
1,905,888
= 2x the population of Amsterdam
Jobs
13,958
People Served
3,761,363
= 5x the population of Amsterdam

People hold immense significance in the climate change context, particularly in emerging markets. Local communities within these regions are often on the front lines of climate impacts, experiencing the consequences firsthand. Engaging and empowering these communities is vital for effective climate change mitigation and adaptation strategies. By recognizing and incorporating their knowledge, needs, and aspirations, solutions can be contextualized, ensuring they are sustainable and resonate with local realities. Furthermore, empowering individuals within these communities to become active participants in climate action fosters ownership, resilience, and a sense of collective responsibility. Additionally, climate change presents economic opportunities for emerging markets, such as job creation and sustainable development, making it crucial to prioritize people's well-being, livelihoods, and aspirations in climate investments and strategies. Ultimately, people are not only affected by climate change but also possess the power to drive transformative change and contribute to a more sustainable future.

The climate investment fund operates on the belief that targeted investments in projects and businesses that tackle climate change can yield significant positive impacts. By providing financial resources, technical expertise, and guidance, the fund supports the implementation and operation of initiatives that reduce greenhouse gas emissions, promote renewable energy, enhance climate resilience, and foster sustainable practices. The fund's ultimate goal is to contribute to the global fight against climate change, facilitate the transition to a low-carbon economy, create green jobs, improve environmental sustainability, and drive socio-economic development in the communities and regions where these projects are implemented. The fund also aims to ensure the long-term sustainability of its impact by reinvesting the financial returns generated from its successful investments, thereby creating a cycle of continuous support for climate-focused initiatives.

A climate investment fund can have a profound impact on people, particularly those in emerging markets who are disproportionately affected by climate change. By channeling financial resources and expertise into projects and businesses that address climate challenges, the fund can contribute to positive outcomes for local communities. This includes creating new employment opportunities, especially in green sectors, which can enhance livelihoods and economic well- being. Additionally, the fund's investments can improve access to clean energy, promote sustainable practices, and enhance climate resilience, directly benefiting the daily lives and long- term prospects of individuals and communities. By prioritizing the needs and aspirations of people in its investment decisions, the climate fund can empower individuals, foster social inclusion, and promote sustainable development, ultimately improving the quality of life and building a more resilient future for those most impacted by climate change in emerging markets.

Catalytic effect

Climate Investor 1
USD 600mn
Climate Investor 2
USD 584mn
Climate Investor 1
USD ~1.2bn
Climate Investor 2
USD ~1.6bn

Catalytic capital holds immense significance in the realm of impact investing due to its ability to unlock and leverage additional resources, amplify social and environmental impact, and drive systemic change. By providing patient and risk-tolerant capital, catalytic investors take on higher risk and lower returns, thereby de-risking investments for other stakeholders. This not only attracts traditional investors who may have been hesitant to engage but also mobilizes additional funding from philanthropic organizations, government agencies, and mainstream financial institutions. The catalytic effect of this capital extends beyond immediate financial returns, stimulating innovation, scaling up impactful initiatives, and inspiring collective action to address pressing social and environmental challenges. In essence, catalytic capital plays a critical role in accelerating positive change and creating a multiplier effect that reverberates throughout the impact investing ecosystem.

The theory of change for catalytic capital in a climate context involves leveraging blended finance as a derisking strategy. By deploying patient and risk-tolerant capital, catalytic investors attract traditional investors and blend different sources of capital to finance climate projects. This blending approach helps to mitigate the perceived risks associated with climate investments, making them more attractive to mainstream financial institutions. As a result, catalytic capital acts as a catalyst, mobilizing additional funding from public and private sources, and facilitating the scaling of climate solutions. This theory of change enables the acceleration of investments in renewable energy, energy efficiency, climate resilience, and other climate-related initiatives, fostering the transition to a low-carbon and climate-resilient future.