In brief: Governments commit to EIB and AllianzGI emerging market climate fund

Emerging Market Climate Action Fund (EMCAF), a blended finance vehicle established by AllianzGI and the European Investment Bank (EIB), has received capital commitments from the UK and German governments.

EIB and AllianzGI launched EMCAF at COP26 in 2021 to invest in funds that scale greenfield climate mitigation and adaptation projects, and companies with a green business model. Its anchor investors included the governments of Germany and Luxembourg, the Nordic Development Fund, Allianz, Folksam Group, as well as EIB itself.

The United Kingdom Foreign, Commonwealth & Development Office (FCDO) has now committed £9 million (€10.5 million; $11.4 million), according to a statement. In addition, on behalf of Germany’s Ministry for Economic Affairs and Climate Action, Kreditanstalt für Wiederaufbau intends to add to its existing commitment with an additional €33 million.

EMCAF has thus far committed more than $100 million to five funds: ARCH Cold Chain Solutions Fund; Alcazar Energy Partners II; Vinci Climate Change Fund; GEF South Asia Growth Fund III; and Inspired Evolution III Fund. EMCAF is expected to invest in approximately 12 funds at full deployment, and is set to hold a third close on €385 million in the coming weeks.