Developed by CFM Argos, a joint venture between European investment manager Climate Fund Managers and the Malaysia-based investor Argos Partners, the Malaysia Climate Infrastructure Fund (MCIF) was established to address a gap in the market for climate infrastructure in Malaysia, emerging Asia and Latin America.

Emerging markets are particularly affected by climate challenges, including water scarcity, energy transition and urbanisation. However, investment is often fragmented and projects face challenges in accessing appropriate capital.

MCIF introduces a multi-sector, Shariah-compliant investment model that addresses these challenges with a climate investment strategy that embeds sustainability. The Shariah-compliant structuring broadens the potential investor base, supporting the mobilisation of climate finance at scale for underfunded climate infrastructure sectors.

Aligned with international standards, the strategy includes renewable energy, water and wastewater, low-carbon transport and digital infrastructure, targeting approximately 3.9 million tonnes of carbon dioxide equivalent (tCO₂) emissions avoided and improved access to climate-resilient infrastructure for up to one million people over its lifetime.

The fund reached its first close in March 2025 at $120 million, with commitments from Malaysian pension fund Kumpulan Wang Persaraan (KWAP). The fund is targeting final close by 2027.

Since its first close, MCIF has committed funding to three climate infrastructure projects, including two water infrastructure platforms in Southeast Asia and a waste-to-biogas platform in India.