AllianzGI and EIB plan to mobilise €7.5bn for emerging markets climate projects

An emerging markets climate action fund (EMCAF), created by the European Investment Bank (EIB) and Allianz GI plans to mobilise €7.5bn of finance for climate projects in emerging and developing countries.

Launched in 2021, EMCAF is a blended finance private equity fund focused on investing in renewable energy and energy efficiency. It has already raised €450m in public funding from European governments, with its final €20m public contribution coming from Germany’s Kreditanstalt für Wiederaufbau on behalf of the German Federal Foreign Office.

It has received backing from private insurers Allianz and Swedish insurance company Folksam, according to the EIB and AllianzGI.

In the past year, EMCAF provided $100m for four transactions supporting renewable energy, sustainable mobility, and green infrastructure across Africa, Asia, and Latin America. These investments include the Helios CLEAR Fund, the AIIF4 Climate Investment Fund, Southeast Asia Clean Energy Fund II, and the Exagon Latin America Fund I.

The EIB and AllianzGI have stated that the fund plans to invest in around 15 additional funds, which are expected to support approximately 150 projects aimed at reducing greenhouse gas emissions.