Key Impact Points:
- Final German Contribution: Germany’s KfW added €20 million, raising the fund to €450 million.
- Climate Project Focus: EMCAF targets €7.5 billion in investments for renewable energy, transport, water, and more in emerging markets.
- Global Recognition: Endorsed by the G7 for its innovative, market-led approach to mobilize private investments for climate infrastructure.
A Milestone for Climate Financing
The Emerging Markets Climate Action Fund (EMCAF), created by the European Investment Bank (EIB) and Allianz Global Investors (AllianzGI) in 2021, has achieved a final close of €450 million. This growth is driven by a €20 million top-up from Germany’s KfW, acting on behalf of the Federal Foreign Office. EMCAF is one of the largest blended finance equity funds, designed to catalyze up to €7.5 billion in climate finance for developing countries.
Diverse Investment Focus
EMCAF prioritizes renewable energy and energy efficiency but also supports sustainable transport, forestry, water supply, and wastewater projects. The fund plans to invest in 15 funds, backing approximately 150 projects aimed at reducing greenhouse gas emissions and enhancing climate resilience.
AllianzGI Chief Executive Officer Tobias Pross emphasized,
“This milestone represents a powerful opportunity to drive meaningful change in the regions where the need is greatest and is testament to the trust of our partners, the dedication of our team, and our shared vision for the future.”
Public-Private Partnerships in Action
EIB Vice-President Ambroise Fayolle highlighted EMCAF’s collaborative success:
“EMCAF shows the power of public and private partnerships to bridge the global climate finance gap. The EIB will continue to prioritize innovative financial instruments to assist developing countries to accelerate a green and climate change resilient transition.”
Last year, EMCAF supported renewable energy, mobility, and green infrastructure projects across Africa, Asia, and Latin America with $100 million in investments. Key funds include Helios CLEAR Fund, AIIF4 Climate Investment Fund, Southeast Asia Clean Energy Fund II, and Exagon Latin America Fund I.
Broad Global Support
Major stakeholders include the EIB, Allianz insurance companies, Nordic Development Fund, and others. Stephanie Lindemann-Kohrs, Director of Global Equity and Funds at KfW, praised EMCAF’s impact:
“Through our participation in the final close of the fund, we were again able to leverage crucial private capital… enabling private sector players to offer a meaningful contribution to global climate projects with high impact on the ground.”
Satu Santala, Managing Director of the Nordic Development Fund, added:
“Through its innovative structure, EMCAF has achieved remarkable scale, driving investment into projects that contribute to both climate change mitigation and resilience while profoundly improving lives in the world’s most vulnerable regions.”
Early Successes Highlighted
The recently released 2023 impact report showcases EMCAF’s early achievements, including approximately 800,000 metric tons of greenhouse gas emissions reduced, underlining its potential for transformative impact in emerging markets.
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