AllianzGI: Emerging Markets Climate Fund Reaches €450 Million with German Contribution

The Emerging Markets Climate Action Fund (EMCAF), a collaborative initiative between the European Investment Bank (EIB) and Allianz Global Investors, has reached a total size of €450 million following a final contribution of €20 million from Germany's Kreditanstalt für Wiederaufbau (KfW) on behalf of the German Federal Foreign Office. Originally established in 2021, EMCAF is designed as a blended finance equity fund aimed at mobilizing up to €7.5 billion for climate projects in emerging and developing countries. The fund focuses on renewable energy, energy efficiency, sustainable transport, forestry, water supply, and wastewater projects. It aims to support around 150 projects through investments in approximately 15 funds. The initiative underscores the potential of public-private partnerships to fill the global climate finance gap, a sentiment echoed by officials from EIB and AllianzGI. Notably, EMCAF's success and innovative market-led approach have been endorsed by the G7. Since its inception, EMCAF has invested $100 million in various regions, including Africa, Asia, and Latin America, in projects involving renewable energy and sustainable infrastructure. Key contributors also include the Government of Luxembourg, the Nordic Development Fund, the UK Foreign, Commonwealth & Development Office, and several insurance companies. EMCAF's recent impact report highlights its significant achievements in capital mobilization and climate impact, notably reducing 800,000 metric tons of greenhouse gas emissions.