The European Investment Bank (EIB) and Allianz Global Investors (AllianzGI) have announced additional capital commitments to the Emerging Market Climate Action Fund (EMCAF).
The United Kingdom’s Foreign, Commonwealth & Development Office (FCDO) has pledged £9 million, and Germany’s Kreditanstalt für Wiederaufbau (KfW) plans to add €33 million to its existing commitment.
With these new funds, EMCAF is expected to reach its third close with a total of €385 million.
EMCAF, launched at COP26, is a blended finance fund focusing on early-stage equity financing for greenfield climate mitigation and adaptation projects in emerging and developing markets. It aims to invest about twelve funds, supporting approximately 150 global climate-related projects.
The fund has already committed over $100 million to various funds, including those focusing on cold-chain infrastructure in East Africa, renewable energy projects in the Middle East, North Africa, Eastern Europe, Central Asia, and Brazil and companies operating in water, energy efficiency and circular economy sectors in India.
The European Investment Bank, as the EU’s long-term lending institution, has aligned its financial activities with the Paris Agreement and plans to support €1 trillion in climate action and environmental sustainability investments by 2030.
Ambroise Fayolle, EIB vice-president, said, “The COP28 Presidency has called for real-world solutions to respond to the climate crisis.
“With the Emerging Market Climate Action Fund, we are delivering a success story that is showing the way for others to follow in mobilising private finance at scale. As the EU climate bank, we are delighted with the progress achieved in the past two years, and we welcome the new capital commitments from Germany and the United Kingdom.”
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