A fund for supporting climate finance in emerging markets, launched by the European Investment Bank (EIB) and Allianz Global Investors (AllianzGI) in 2021, has closed at €450 million (US$466.7 million) following a final €20 million top-up from the German government. The Emerging Markets Climate Action Fund (EMCAF) is now one of the world’s largest blended finance equity funds. It is expected to mobilise up to €7.5 billion of climate finance in emerging and developing markets. Last year, EMCAF provided US$100 million for four transactions supporting renewable energy, sustainable mobility and green infrastructure across Africa, Asia and Latin America. “EMCAF has proven, that equity investments in climate mitigation and adaptation projects represent a suitable impact investing theme,” commented Stephanie Lindemann-Kohrs, Director Global Equity and Funds at Kreditanstalt für Wiederaufbau, the development bank through which the German funds are channelled. Renewable energy and energy efficiency represent a majority of EMCAF’s investments to date. Other areas of support by EMCAF include sustainable transport, forestry, water supply and wastewater. “EMCAF shows the power of public and private partnerships to bridge the global climate finance gap,” said EIB Vice-President Ambroise Fayolle. AllianzGI Chief Executive Officer Tobias Pross added: “As we close this fund dedicated to climate mitigation and adaptation in emerging markets, we are investing not just in sustainable solutions but in the future of our planet.” EMCAF recently published its second impact report covering the year 2023, which shows that the fund contributed to a reduction of 800,000 metric tonnes of greenhouse gas emissions.
