Emerging Market Climate Action Fund (EMCAF)

PROJECT PRESENTATION

The European Investment Bank (EIB), Allianz Global Investors (AllianzGI), Governments of Germany and Luxembourg, the Nordic Development Fund, Allianz, and Folksam Group are working together to mitigate climate change in various environmental sectors. These include Electricity generation, Renewable Energy: Solar PV, Wind onshore, Hydropower, Geothermal, Biomass, Sustainable Cities, Forestry, Water and Circular Economy.

EMCAF is a fund of funds that supports climate-focused investment funds and projects active in emerging markets and developing countries. Its focus is on climate mitigation, climate adaptation, and access to electricity.

With a target size of €600 million, EMCAF aspires to become a European flagship impact investing initiative, mobilising substantial amounts of private capital to get climate action projects off the ground in Africa, Asia, Latin America and the Middle East. EMCAF investments are expected to support a significant amount of new clean energy capacity globally. EMCAF invests into specialized investment funds that support projects like onshore windfarms and solar photovoltaic plants or small and medium sized hydropower plants. It also supports energy efficiency projects in housing or industry, or projects bringing environmental or resource efficiency benefits. To help emerging and developing countries to adapt to the impacts of climate change, the fund also finances projects that support cities and their public transport systems to become more resilient against floods or heat.

As EMCAF’s investment advisor, the EIB is responsible for market analysis, the identification and appraisal of investments, including their environmental and social aspects. AllianzGI acts as the Alternative Investment Fund Manager (AIFM) responsible for the fund’s management and decision-making. EMCAF is aligned with the new EU taxonomy, and is accredited as an Official Development Assistance vehicle with the OECD. Its investors will receive transparent impact reporting, including key performance indicators such as renewable electricity produced and CO2 emissions avoided. EMCAF is a layered instrument combining public and private investors. Alongside EIB, Allianz and Folksam, further partners have already committed to investing in the fund: KfW on behalf of the German Federal Ministry for Economy and Climate (BMWK), the EIB on behalf of the Government of Luxembourg, and the Nordic Development Fund (NDF). The EIB has committed €50 million, Allianz Group companies up to €200 million and Folksam Group another €150 million. BMWK has committed €25 million, the NDF and the Government of Luxembourg each €15 million. The EIB manages the investment in the junior tranche funded by the Government of Luxembourg through the Luxembourg-EIB Climate Finance Platform (LCFP).

Financing instrument: Equity/Quasi-equity

Duration: 17 years, extendable

PRESENTATION OF THE ORGANIZATION

The European Investment Bank is the lending arm of the European Union. We are the biggest multilateral financial institution in the world and one of the largest providers of climate finance.

Since its establishment in 1958, the EU bank has invested over a trillion euros. While climate action is a part of everything we do, our activities focus on the following priority areas: climate and environment, development, innovation and skills, small and medium-sized businesses, infrastructure and cohesion.

The EIB works closely with other EU institutions to foster European integration, promote the development of the EU and support EU policies in over 160 countries around the world.

Through EIB Global, set up in 2022 to increase the impact of our development finance, we help address global challenges and create growth and opportunity in all continents.

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