The Emerging Markets Climate Action Fund, a joint initiative by the European Investment Bank and Allianz Global Investors, announced on Thursday that it reached €450 million ($472.66) to mobilize climate projects in developing countries.
According to a statement, the fund touched €450 million following a €20 million contribution from Germany’s development bank KfW on behalf of the Federal Foreign Office.
Launched in 2021, EMCAF is designed to mobilize up to €7.5 billion for climate-focused projects in emerging markets. Investments target renewable energy, energy efficiency, sustainable transport, forestry, water supply and wastewater management.
“EMCAF demonstrates the transformative power of public-private partnerships to bridge the global climate finance gap,” said EIB Vice-President Ambroise Fayolle in the statement. “The EIB will continue to prioritize innovative tools to support developing countries in accelerating their transition to climate resilience.”
Major Milestone in Climate Finance
EMCAF has backed about 150 projects through investments in approximately 15 funds, including $100 million disbursed in 2024 for initiatives in Africa, Asia and Latin America.
Beneficiary funds include Helios CLEAR Fund, AIIF4 Climate Investment Fund, Southeast Asia Clean Energy Fund II and Exagon Latin America Fund I.
The fund’s structure blends public and private financing to catalyze investments in regions most affected by climate change.
Investors include the Government of Luxembourg, the Nordic Development Fund, the UK Foreign, Commonwealth & Development Office and several European insurance companies.
“This milestone represents a powerful opportunity to drive meaningful change in the regions where the need is greatest,” said AllianzGI CEO Tobias Pross.
Innovative Model Gains G7 Endorsement
In 2022, the Group of Seven endorsed EMCAF as a model for mobilizing private capital for climate infrastructure. Germany has been a key supporter, with KfW investing on behalf of multiple ministries, including the Federal Ministry for Economic Affairs and Climate Action.
“EMCAF has proven that equity investments in climate mitigation and adaptation are an effective impact investing theme,” said Stephanie Lindemann-Kohrs, director of global equity and funds at KfW.
Driving Impact Where It’s Needed Most
The Nordic Development Fund highlighted EMCAF’s ability to deliver tangible benefits in vulnerable regions. “This fund has achieved remarkable scale, driving investments into projects that mitigate climate change and build resilience,” said NDF Managing Director Satu Santala.
As one of the world’s largest blended finance equity funds, EMCAF sets a benchmark for collaboration between governments, financial institutions, and private investors in addressing the climate crisis.
