Emerging Market Climate Action Fund (EMCAF)

The Emerging Market Climate Action Fund (EMCAF) is a fund of funds to support fund managers who implement economically viable climate protection and adaptation projects in emerging and developing countries. Geographically, the fund will be active in developing countries worldwide. At least 25% of total commitments will be channelled to Africa. It is expected that the majority of investments will be in renewable energy (RE) and energy efficiency (EE), followed by investments in sustainable transport, forestry, rehabilitation/restoration of degraded land, water and sanitation, and circular economy. All investments will be made either as indirect investments through a fund or platform or as co-investments alongside target funds or platforms that are part of the EMCAF portfolio.

Project data

IKI funding: 90,525,000.00 €
Duration: 10/2021 till 12/2038
Status: open
Implementing organisation: KfW Entwicklungsbank
Online: https://emcaf.allianzgi.com/

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State of implementation/results

In view of the need to increase the mobilization of private financial resources, Germany is supporting the Emerging Market Climate Action Fund (EMCAF). EMCAF is a fund of funds to support fund managers in commercially viable climate change mitigation and adaptation projects in emerging and developing countries. EMCAF mobilizes significant private capital through a blended finance model by lowering the risks for private investors to invest in higher risk areas. Without EMCAF's innovative capital structure, this private money would not flow. Allianz Global Investors (AGI) acts as fund manager to EMCAF and the European Investment Bank acts as advisor to AGI. EMCAF focuses on investments in renewable energy and energy efficiency, but also includes sustainable transportation, forestry, remediation/restoration of degraded land, water supply, wastewater and circular economy. The fund focuses exclusively on "greenfield" investments. As part of the German Presidency in 2022, EMCAF was recognized by the G7 as a model project for international climate finance. In addition to Germany, the fund is also supported by the UK government, Luxembourg and the Nordic Development Fund.

Latest Update:
12/2024