Allianz Global Investors (AllianzGI) and the European Investment Bank (EIB) announced today that they have raised €450 million (USD$468 million) for their joint Emerging Markets Climate Action Fund (EMCAF), aimed at mobilizing financing for climate-focused projects in emerging and developing countries.

The final close of the fund comes following a €20 million top- up from Germany’s KfW, on behalf of the German Federal Foreign Office.

Launched during the COP26 climate conference in November 2021, EMCAF was established to focus on financing projects across climate mitigation, climate adaptation, and access to electricity, as well as in projects that help emerging and developing countries to mitigate the impact and build resiliency to climate change-related events, such as floods or heat.

The fund will invest in around 15 funds, which themselves are expected to back about 150 projects to reduce greenhouse gas emissions, cope with the impacts of climate change and promote environmental sustainability.

To date, the majority of the fund’s investments have focused on renewable energy and energy efficiency, with other areas of support including sustainable transport, forestry, water supply and wastewater.

AllianzGI Chief Executive Officer Tobias Pross, said:

“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. This milestone represents a powerful opportunity to drive meaningful change in the regions where the need is greatest and is testament to the trust of our partners, the dedication of our team and our shared vision for the future.”

Launched as a public-private partnership, EMCAF is now one of the world’s largest blended finance equity funds, with AllianzGI and EIB estimating that it is expected to mobilize up to €7.5 billion of climate finance in emerging and developing markets.

EIB Vice-President Ambroise Fayolle, said:

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