Climate Fund Managers (CFM), a climate-focused blended finance investment manager supported by the European Union, has achieved financial close on its first investments in Colombia and opened its new regional headquarters in Bogotá.
Established in 2015, CFM is a joint venture between Dutch development bank FMO and Sanlam InfraWorks of the Sanlam Group of South Africa, with offices in The Hague, Cape Town, Singapore, and now Bogotá.
CFM’s investments, in the renewable energy projects Pétalo del Norte I and PCH Nare, will generate clean energy for 132,000 people, avoid 43,700 tonnes of CO2 equivalent emissions annually and create over 600 jobs. The milestones "underscore CFM’s commitment to driving climate-resilient solutions and socioeconomic growth in Latin America", the statement on 12 February said.
CFM manages two EU-supported $1bn emerging market funds: Climate Investor One (CIO), which focuses on renewable energy and Climate Investor Two (CI2), which targets water, sanitation and oceans infrastructure. Through its blended finance model, CFM combines public and private capital to balance risk, enabling investments across the project lifecycle—from development to construction and operations—at competitive capital costs and accelerated timelines.
The Colombia investments were made via CIO and include:
• The PCH Nare Hydroelectric Power Plant (21.2 MW), located on the Nare River in Alejandría, Antioquia. Developed by SP Ingenieros and Amber Capital Energy, the project will produce 132 GWh of clean energy annually, avoiding c.30,500 tonnes of CO2 equivalent emissions and serving over 100,000 people. It will generate 373 jobs during construction and 19 permanent roles. CFM invested $2m in the development phase and has reached financial close on USD 64 million in equity funding for construction, including $7.5m from the European Commission’s Energy Efficiency Initiative (EC EEI).
• The Pétalo del Norte I Power Plant (26.4 MW), located in between Cesar and North of Santander, developed in partnership with Erco Energía, where Erco is also doing the construction. The project will produce 43.1 GWh of clean energy annually, avoiding c.13,250 tonnes of CO2 equivalent emissions, creating c.200 jobs and serving c.32,600 people. It represents the first in a planned series of solar PV investments in Colombia. CFM invested $1m in development capital and has reached financial close on $18.2m in equity funding for construction. This project is the first of a portfolio of development initiatives under this partnership with Erco in the solar PV market.
CFM provides technical, operational and financial support to project teams, including scalable finance models and ESG (Environmental, Social, and Governance) support to ensure compliance with international standards and alignment with the UN’s Sustainable Development Goals (SDGs). Both projects support development programmes for local communities focused on education, agriculture and female empowerment. The PCH Nare programme also emphasises biodiversity conservation and the Pétalo del Norte I programme includes water and sanitation facilities.
Alberto Menghini, head of cooperation at the European Union Delegation in Colombia said: “The European Union is fully committed to decarbonising the economy and supporting the energy transition in our partner countries in Latin America under the Global Gateway Investment Agenda.
"CFM’s blended finance model leverages funding from public institutions like the EU and other European partners strategically, to de-risk initiatives and catalyse private sector investment, making transformative projects like Pétalo del Norte I and PCH Nare a reality. These projects will help address Colombia’s energy challenges, where over six million people still lack access to reliable electricity, while strengthening and diversifying the energy matrix. At scale, such initiatives can make a significant contribution to global climate goals.”
Juan Paez, head of Latin America, CFM said: "While CFM has been active in Latin America since 2022, our first investments in Colombia and the opening of our Bogotá office mark a significant milestone in our regional footprint.
"Latin America faces pressing climate challenges, but its natural resources and growing green economies offer immense potential for climate-resilient solutions. Investing in critical climate infrastructure supports the region’s transition to sustainable energy while driving long-term economic and social development. We welcome collaboration with investors, developers, and government partners who share our vision."
CFM made its first investment in Latin America in 2023 through Ecuador’s landmark debt-for-nature swap, which exchanged USD 1.6 billion in government bonds for a USD 656 million impact loan, unlocking $550m in conservation funding to protect the Galapagos Islands.
The funds will safeguard the 60,000 km² Hermandad Marine Reserve, supporting marine life, sustainable fishing, tourism, and climate resilience. CFM contributed $2m in development capital through CI2, with the Dutch Fund for Climate & Development (DFCD) and the European Commission among others providing the risk capital. An additional CI2 investment will deliver $81m in conservation funding over the project's lifetime.
CFM is a climate-focused blended finance investment manager operating across Africa, Asia, and Latin America.
CFM raises and deploys blended climate finance funds, working in partnership to deliver climate-resilient solutions at scale and pace.
With over $2bn in assets under management and targeting an additional $6bn, CFM’s private equity and private credit facilities address key areas of climate change mitigation and adaptation, including renewable energy, energy transition and green hydrogen, energy transmission, water and sanitation, and biodiversity and oceans infrastructure.
