This will include green hydrogen infrastructure in Southern Africa. CI3 targets investments within industrial decarbonisation globally. Under the GCF-supported programme, activity in South Africa and Namibia will include green hydrogen production, downstream derivatives such as green ammonia and green methanol, and the decarbonisation of hard-to-abate industries.
The funding was approved at GCF's 46th Board meeting in Songdo, Republic of Korea, held from 26 to 29 October 2026.
Its diversified portfolio approach allows CI3 to invest across renewable energy generation, production, transport and end-use infrastructure, supporting the development of integrated industrial value chains. Its Development Tranche finances early-stage project development, while its Construction Equity Tranches provide equity capital to support projects through construction.
CI3 invests through two country-specific Climate Fund Managers’ affiliates: the SA-H2 Fund (SA-H2) in South Africa and SDG Namibia One Fund (SDG Namibia One) in Namibia. Of the USD 140 million approved, USD 84 million will be allocated to SA-H2's Construction Equity Tranche, while USD 56 million will be allocated to SDG Namibia One, comprising USD 15 million for its Development Tranche and USD 41 million for its Construction Equity Tranche.
The GCF financing will be provided under the Southern African Industrial Decarbonisation Facility (SIDF), GCF's first platform dedicated to decarbonising industrial value chains in Africa. The Development Bank of Southern Africa (DBSA) serves as GCF Accredited Entity for SIDF, with responsibility for programme oversight, monitoring and reporting to GCF.
The approval builds on Climate Fund Managers’ longstanding relationship with GCF, including previous investments in: Climate Investor One, focused on renewable energy; Climate Investor Two, focused on water, waste and oceans infrastructure; and the GAIA Climate Loan Fund, which provides debt financing for climate adaptation and mitigation projects. It also follows Climate Fund Managers' accreditation by GCF in July 2026.
“CI3 marks an important milestone in Climate Fund Managers’ journey of directing capital, through innovative financing structures, into commercial investments designed to mitigate the causes of climate change and help societies adapt to the consequences we witness every day around us” said Andrew Johnstone, Chief Executive Officer of Climate Fund Managers. “Decarbonising heavy industry is essential to achieving global climate goals and presents a significant investment opportunity. Yet the scale and complexity of these projects create financing challenges, particularly during development and construction. By helping to mitigate these risks, GCF's catalytic financing can attract institutional investment into commercially viable projects and support competitive, low-carbon industrial growth.”
In South Africa, SA-H2 has signed development funding agreements for Hive Hydrogen's Coega green ammonia project and Green eFuels Producers' wastewater-to-green-methanol facility. In Namibia, SDG Namibia One has signed development funding agreements with the Hyphen green hydrogen project, HyIron's Oshivela green iron project, the Zhero Molecules Walvis Bay green ammonia project and the Dâures green fertiliser project.
Climate Fund Managers will continue to mobilise public and private capital towards CI3's $1.2 billion fundraising target, supporting the development and construction of energy transition and green hydrogen infrastructure across South Africa and Namibia.
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