The European Investment Bank (EIB) and Allianz Global Investors (AllianzGI) are collaborating on a major initiative to finance climate projects in emerging markets, aiming to raise €7.5 billion. This funding will be channeled through the Emerging Markets Climate Action Fund (EMCAF), a blended finance private equity fund designed to support renewable energy and energy efficiency initiatives in developing regions.
Launched in 2021, EMCAF focuses on mobilizing capital from both public and private sources to drive sustainable infrastructure development in emerging economies. The fund has already secured €450 million in public backing from European governments, including a recent €20 million contribution from Germany’s Kreditanstalt für Wiederaufbau (KfW), representing the German Federal Foreign Office.
In addition to the European public sector support, Allianz and Swedish insurer Folksam have also provided private investment, solidifying the fund’s financial foundation. To date, EMCAF has committed $100 million to four projects across Africa, Asia, and Latin America. These projects focus on renewable energy, sustainable mobility, and green infrastructure, with notable investments in the Helios CLEAR Fund, the AIIF4 Climate Investment Fund, Southeast Asia Clean Energy Fund II, and Exagon Latin America Fund I.
The fund aims to further its impact by investing in 15 additional funds, targeting approximately 150 projects aimed at reducing greenhouse gas emissions and accelerating the transition to low-carbon economies. These efforts are aligned with global climate goals and are essential to fostering sustainable development in regions most vulnerable to climate change.
By combining the financial strength of private investors and the development objectives of public institutions, EMCAF is positioned to be a pivotal player in the green transition for emerging markets.
References:
- European Investment Bank (EIB)
- Allianz Global Investors (AllianzGI)
- Kreditanstalt für Wiederaufbau (KfW)
