• The Emerging Markets Climate Action Fund (EMCAF), created by EIB and AllianzGI, has reached €450M and aims to mobilize up to €7.5B in climate finance for emerging markets.
• EMCAF investments span renewable energy, energy efficiency, sustainable transport, forestry, and water infrastructure, targeting 150 projects.
• The fund has already reduced approximately 800,000 metric tons of greenhouse gas emissions, showcasing measurable early impact.

A climate financing fund launched by the European Investment Bank (EIB) and Allianz Global Investors (AllianzGI) has finalized its size at €450 million with a recent €20 million contribution from Germany’s Kreditanstalt für Wiederaufbau (KfW). This Emerging Markets Climate Action Fund (EMCAF), established in 2021, has rapidly become one of the world’s largest blended finance equity funds.

EMCAF is expected to mobilize up to €7.5 billion in climate finance across emerging and developing markets, primarily targeting renewable energy and energy efficiency projects. Other supported sectors include sustainable transport, forestry, water supply, and wastewater systems. The fund aims to invest in around 15 sub-funds backing approximately 150 projects.

“EMCAF shows the power of public and private partnerships to bridge the global climate finance gap,” said EIB Vice-President Ambroise Fayolle. “As the climate bank, the EIB will continue to prioritize innovative financial instruments to assist developing countries to accelerate a green and climate change-resilient transition.”

Launched at the United Nations Climate Change Conference (COP26) in Glasgow, EMCAF gained endorsement from the Group of Seven (G7) in 2022 as a groundbreaking model for mobilizing private investments in climate infrastructure.

Related Article: EIB Global and AllianzGI Announce $100 Million for Renewable Energy Projects

The fund achieved several key milestones in 2023, including $100 million invested across Africa, Asia, and Latin America in renewable energy, sustainable mobility, and green infrastructure. Supported initiatives include Helios CLEAR Fund, AIIF4 Climate Investment Fund, Southeast Asia Clean Energy Fund II, and Exagon Latin America Fund I.

“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,” said AllianzGI Chief Executive Officer Tobias Pross. “This milestone represents a powerful opportunity to drive meaningful change in the regions where the need is greatest.”

The fund’s 2023 impact report highlights early achievements, including reducing approximately 800,000 metric tons of greenhouse gas emissions. “EMCAF has proven that equity investments in climate mitigation and adaptation projects represent a suitable impact investing theme,” said Stephanie Lindemann-Kohrs, Director Global Equity and Funds at KfW. “We were again able to leverage crucial private capital to provide this necessary financial instrument to targeted regions.”

Key backers of EMCAF include the EIB, the Government of Luxembourg, the Nordic Development Fund (NDF), the UK’s Foreign, Commonwealth & Development Office, and insurance firms such as Allianz and Folksam. “Through its innovative structure, EMCAF has achieved remarkable scale, driving investment into projects that contribute to both climate change mitigation and resilience,” said Satu Santala, Managing Director of NDF.

With its expanding portfolio and growing impact, EMCAF exemplifies how public-private partnerships can deliver transformative change in addressing the climate crisis and fostering sustainable development in vulnerable regions.

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