BAKU, Azerbaijan, January 23. The Emerging Markets Climate Action Fund (EMCAF), established by the European Investment Bank (EIB) and Allianz Global Investors (AllianzGI), has reached 450 million euros in funding following a 20 million euro contribution from Germany’s Kreditanstalt für Wiederaufbau (KfW) on behalf of the German Federal Foreign Office, Trend reports.
Launched in 2021, EMCAF is one of the largest blended finance equity funds in the world, aimed at mobilizing up to 7.5 billion euros in climate financing for emerging and developing markets. The fund primarily invests in renewable energy and energy efficiency projects, along with sustainable transport, forestry, water supply, and wastewater initiatives.
EMCAF is expected to support around 15 funds, which will back approximately 150 projects focused on reducing greenhouse gas emissions, adapting to climate change, and promoting sustainability. In 2022, the fund provided $100 million to four projects in Africa, Asia, and Latin America, targeting renewable energy, sustainable mobility, and green infrastructure.
EIB Vice-President Ambroise Fayolle emphasized the importance of public-private partnerships in addressing the climate finance gap, stating that the EIB would continue supporting innovative instruments to accelerate green transitions in developing nations. AllianzGI CEO Tobias Pross highlighted the fund’s role in driving meaningful change in regions most affected by climate challenges.
Key investors in EMCAF include the EIB on behalf of Luxembourg, the Nordic Development Fund, the UK Foreign, Commonwealth & Development Office, and various private insurance companies. The fund’s success showcases the effectiveness of collaborative financing in tackling global climate challenges.