FinDev Canada has announced that it has committed US$20 million to Climate Investor One's (CIO) Construction Equity Fund to support the transition to renewable energy in emerging markets, helping avoid approximately 1.2 million tons of CO₂ emissions.

CIO is an innovative blended finance initiative which is helping fast track some 1,100MW of renewable energy, benefiting 8 million people and mobilizing up to US$3 billion in private capital. In addition to the positive impact in climate change mitigation, the projects supported by CIO are expected to create over 25,000 temporary and permanent jobs, according to FinDev Canada estimations.

FinDev Canada will bring additional value through its participation in the Fund's Advisory Board, offering capacity to the Fund in areas such as women's economic empowerment and financial innovation. The participation of FinDev Canada and other Development Finance Institutions is expected to have a mobilizing effect in attracting commercial investors.

With this investment, FinDev Canada is the first North American institution to commit capital to CIO's Construction Equity Fund. With a focus on solar, wind and run-of-river hydro technologies targeted across Africa, Asia and Latin America, CIO will mobilise further commercial funds and build approximately 20 renewable energy projects, delivering an estimated 3,200 GWh of additional capacity.

Approximately 70% of the fund's projects will be built in least developed countries (LDC) and low-and-middle-income countries (LMIC.) Climate Fund Manager has adopted a responsible investment framework, which requires that all projects meet country specific environmental and social laws as well as international standards, including IFC Performance Standards.