AllianzGI, EIB Raise €450 Million for Emerging Markets-Focused Climate Fund – ESG Today

Allianz International Traders (AllianzGI) and the European Funding Financial institution (EIB) introduced immediately that they’ve raised €450 million (USD$468 million) for his or her joint Rising Markets Local weather Motion Fund (EMCAF), aimed toward mobilizing financing for climate-focused tasks in rising and growing nations.

The ultimate shut of the fund comes following a €20 million top- up from Germany’s KfW, on behalf of the German Federal International Workplace.

Launched throughout the COP26 local weather convention in November 2021, EMCAF was established to give attention to financing tasks throughout local weather mitigation, local weather adaptation, and entry to electrical energy, in addition to in tasks that assist rising and growing nations to mitigate the affect and construct resiliency to local weather change-related occasions, corresponding to floods or warmth.

The fund will spend money on round 15 funds, which themselves are anticipated to again about 150 tasks to cut back greenhouse gasoline emissions, address the impacts of local weather change and promote environmental sustainability.

Up to now, nearly all of the fund’s investments have centered on renewable vitality and vitality effectivity, with different areas of assist together with sustainable transport, forestry, water provide and wastewater.

AllianzGI Chief Govt Officer Tobias Pross, mentioned:

“As we shut this fund devoted to local weather mitigation and adaptation in rising markets, we’re investing not simply in sustainable options however in the way forward for our planet. This milestone represents a strong alternative to drive significant change within the areas the place the necessity is biggest and is testomony to the belief of our companions, the dedication of our group and our shared imaginative and prescient for the long run.”

Launched as a public-private partnership, EMCAF is now one of many world’s largest blended finance fairness funds, with AllianzGI and EIB estimating that it’s anticipated to mobilize as much as €7.5 billion of local weather finance in rising and growing markets.

EIB Vice-President Ambroise Fayolle, mentioned:

“EMCAF exhibits the ability of private and non-private partnerships to bridge the worldwide local weather finance hole. Because the local weather financial institution, the EIB will proceed to prioritise modern monetary devices to help growing nations to speed up a inexperienced and local weather change resilient transition.”