The announcement was made today at a ceremony attended by the EU Delegation’s Head of Cooperation and government officials. A portion of the funding will support the development of the Isabela project, a state-of-the-art bioenergy facility in San Manuel, Isabela, due to start construction in Q4 2025. The project includes a 10MW biomass plant and 4MW biogas plant that will produce renewable electricity and gas for local consumption or sale to the grid, reducing emissions by 40,000 tCO2eq annually.

CFM, a climate-focused blended finance investment manager operating across Africa, Asia, and Latin America, is co-developing the project through BioAsia Energy Holdings, its joint venture with bioenergy developer Anvirya Ventures Pte Ltd, and La Suerte Rice Mill Corporation (LSRM), one of the largest paddy milling operators in Isabela. The EU commitment will be channelled through FMO, the Dutch development finance institution, a CFM shareholder.

Nathan Schmidt, Head of Asia at CFM said: “Communities in the Philippines are amongst the most impacted by global warming. Only with public sector commitments like the EU’s can we unlock private investment at a sufficient scale to drive meaningful change. This funding will enhance CI2’s capacity to mobilise private sector investment in critical sectors, including transformative circular economy projects like the Isabela bioenergy facility, while supporting vulnerable communities and advancing the Philippines’ green energy transition.”

Massimo Santoro, Ambassador of the European Union to the Philippines said: “The European Union is steadfast in its support for the world’s most vulnerable regions. In the Philippines, communities face extreme weather events, rising sea levels and water scarcity on an increasing basis. This additional commitment enables essential investments in projects like the Isabela facility that mitigate these challenges, building climate resilience that will benefit the Philippines for generations.”

Ambassador Marielle Geraedts of the Netherlands said: “The Philippines is one of the countries most affected by climate change. But we are all experiencing its effects, also in the Netherlands. CI2 is a showcase example of how the public and private sector can work together, each optimally using its added value. Public funding will contribute to project development and de-risking where necessary, facilitating private sector investment”

Richard Tan, President of La Suerte Rice Mill Corporation said: “We are proud to welcome Climate Fund Managers and the European Union as partners in the Isabela bioenergy project. This initiative represents a significant step forward in sustainable energy development for our region, addressing the dual challenges of agricultural waste and renewable energy generation. By working together, we can create a lasting impact for the farmers and communities of Isabela, while contributing to the Philippines’ broader climate resilience and renewable energy goals.”

ENDS

Notes to Editors:

For more enquiries, please contact Sophie Blythe, [email protected], +44(0) 7765 801 762

About the European Union:

The European Union is an economic and political union of 27 European countries. It is founded on the values of respect for human dignity, freedom, democracy, equality, the rule of law and respect for human rights. It acts globally as a political actor, promoting sustainable development of societies, environment and economies. The EU Delegation to the Philippines is one of some 140 diplomatic missions that represent the EU across the globe. It aims to strengthen EU-Philippine relations in particular through: 

• Representing, promoting and advancing the interests and values of the European Union in the Philippines, and
• Developing and strengthening bilateral political, economic, cultural, educational, scientific and other sectoral cooperation between the European Union and the Philippines.

Where relevant, cooperation with the Philippines also enables the EU to better promote and advance its interests and values at a global and regional level.

About CFM:

Climate Fund Managers (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 USD 2 billion in assets under management and targeting an additional USD 6 billion, CFM’s private equity and private credit facilities address key areas of climate change mitigation and adaptation, including renewable energy, green hydrogen, energy transmission, water and sanitation, and biodiversity and oceans infrastructure. CFM’s funds are supported by public and private sector organisations, with public capital deployed strategically to balance risk and mobilise private sector capital, enabling investment across the project lifecycle - from development to construction and operation. 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 Bogota. Find out more at www.climatefundmanagers.com

About Climate Investor Two:

CFM’s Climate Investor Two Fund was formed in partnership with Dutch Fund for Climate and Development (DFCD) and the European Commission to mobilise private sector investment at scale in water, waste and oceans infrastructure in Latin America, Africa and Asia. Established in 2019, it is supported by multiple public and private sector organisations, including development finance institutions, multilateral finance institutions, public sector banks and institutional investors (including asset managers, pension funds and insurance companies) from across the globe. CI2’s blended finance structure includes a concessional capital Development Fund to absorb project risk and provide early-stage project development services and a tranched Construction Equity Fund to mobilise private investment into asset construction. It offers an innovative “whole-of-life” funding solution, providing a single financing source for the development, construction and operational phases of a project’s lifecycle.

The recent commitment from the European Commission brings the fund, which reached its third close at USD 875 million in November 2023, to a total of USD 885 million. The fund is on track to achieve a final close of USD 1 billion in Q1 2025. To date, CI2 has committed c. USD 262 million to 19 projects in 16 countries, including waste-to-energy platforms in South Africa and Thailand, water treatment plants in Vietnam, desalination initiatives in Kenya and Thailand and pan-Africa and Intra-Asia green shipping companies. It has also implemented the world’s largest debt-for-nature conversion in Ecuador to protect one of the planet’s most important ecosystems: the Galapagos Islands.

In September 2024, CFM announced a minority stake investment in Tubig Pilipinas Group Inc, a clean water platform providing essential water access to communities outside Metro Manila. It also recently commenced operations for CN Green Roof Philippines, its utility-scale solar PV joint venture with Norwegian development finance institution, Norfund.