The Emerging Markets Climate Action Fund (EMCAF) holds its final close at EUR 450 million
Our partners, EIB Global and AllianzGI announce the final close of EMCAF, a blended finance Fund of Funds for climate mitigation and adaptation projects.
"NDF was proud to be among the first investors in EMCAF, joining forces with other likeminded financiers to support this transformative Fund of Funds”, said Satu Santala, Managing Director of NDF.
The managers of the Fund, Allianz Global Investors (AllianzGI), and EIB Global have announced that, with an additional EUR 20m top-up from the German Government (KfW on behalf of the German Foreign Ministry), the Emerging Market Climate Action Fund (EMCAF) has now reached its final closing of EUR 450 million.
EMCAF is one of the largest blended finance private equity funds that finances development of climate mitigation and adaptation projects, as well as companies with green business models in emerging and developing markets.
“Through its innovative structure, EMCAF has achieved remarkable scale, driving investment into projects that contribute to both climate change mitigation and resilience while profoundly improving lives in the world’s most vulnerable regions. The partnership between Allianz and the European Investment Bank has been effective and collaborative, showcasing the strength of teamwork in building critical assets, catalysing private market ecosystems, and advancing public-private partnerships. Together, we are delivering lasting, tangible impact where it is needed most," Santala continues.
Investing in renewable energy
EMCAF provides catalytic early-stage equity financing to develop and grow greenfield climate mitigation and adaptation projects as well as companies with green business models in emerging and developing markets.
Renewable energy and energy efficiency sectors represent a substantial majority of its investments, with additional investment in related climate mitigation and adaption areas such as sustainable transport, forestry, and the circular economy. By the end of the life of the fund, EMCAF is expected to invest in about twelve to fifteen funds, which should support around 150 climate change mitigation, adaptation and environmental sustainability projects.
Since it was first announced in 2021 at COP26 in Glasgow, EMCAF has invested the majority of its investable capital into a broad spectrum of climate mitigation, climate adaptation, and environmental sustainability sectors.
NDF is one of its first funders, together with KfW Development Bank, European Investment Bank (EIB), the United Kingdom Foreign, Commonwealth & Development Office (FCDO), Allianz insurance companies, Folksam insurance companies.
EMCAF has recently published its second impact report covering the year 2023. Despite being in its early stages of portfolio construction, it shows the fund’s strong performance on capital mobilization as well as a first set of climate impact performance indicators, including c.800,000 metric tons of greenhouse gas emissions reduced. You can access the report here.
