October 14, 2025 – Climate Investor Two (CI2), a blended finance facility built off of Lab-developed instrument Climate Investor One (CIO), has become the largest adaptation infrastructure fund in emerging markets, according to 2015 Lab proponent Climate Fund Managers (CFM). With new commitments of USD 190 million and a EUR 205 million EFSD+ guarantee from the European Union, CI2 closed at USD 1.065 billion, surpassing its initial USD 1 billion target. The fund leverages public and private capital to invest in and develop water, waste, and ocean infrastructure across Africa, Asia, and Latin America.

CI2 builds off of the success of CIO, a ~USD 1 billion blended finance vehicle developed during the Lab’s 2015 cycle that focused on financing renewable energy infrastructure. The success of CI2, which aims to provide safe drinking water and improved sanitation to 16.5 million people and protect 2.2 million hectares of ecosystems, underscores strong investor confidence in CFM’s model and demonstrates how blended finance can effectively mobilize private capital for adaptation initiatives, one of the most underfunded areas of climate action in emerging markets.