By Faridat Salifu
Allianz Global Investors (AllianzGI) and the European Investment Bank (EIB) have successfully closed their joint Emerging Markets Climate Action Fund (EMCAF), securing €450 million (USD$468 million) to finance climate-related projects across emerging and developing countries.
This funding milestone was further supported by a €20 million top-up from Germany’s KfW, acting on behalf of the German Federal Foreign Office.
Launched at COP26 in November 2021, EMCAF was established to address the pressing climate challenges facing developing regions, with a focus on climate mitigation, adaptation, and sustainable infrastructure.
The fund will primarily invest in renewable energy, energy efficiency, and initiatives aimed at reducing the impact of climate change, such as flooding, heat waves, and other environmental disasters.
Projects within sectors like sustainable transport, water supply, and forestry are also among its areas of focus.
EMCAF is now one of the world’s largest blended finance equity funds, combining both public and private capital to mobilize much-needed investment for climate solutions in regions most vulnerable to climate risks.
The fund aims to support approximately 150 projects through investments in 15 sub-funds, which are expected to collectively mobilize up to €7.5 billion in climate finance over time.
Tobias Pross, CEO of AllianzGI, emphasized the fund’s significance, stating, “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.”
He noted that the fund’s success represents a powerful opportunity to drive meaningful change in regions where the need for climate resilience is most urgent.
The closure of EMCAF highlights the growing momentum behind climate-focused investments in emerging markets and reinforces the essential role of public-private partnerships in achieving global climate goals.