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.
- IKI funding
- 57,250,000.00 €
- 10/2021 till 12/2038
- Implementing organisation
- KfW Entwicklungsbank
State of implementation/results
- In light of the need to increase the mobilization of private finance, Germany is supporting the Emerging Market Climate Action Fund (EMCAF) with 25 Mio. EUR and has announced at the G7 summit that it plans to further commit 30 Mio. EUR. EMCAF is a fund-of-funds structured to support fund managers in commercially viable climate mitigation and adaptation projects in emerging and developing countries. EMCAF mobilizes via a blended finance model significant private capital by lowering risks for private investors for investments in areas with higher risks. Allianz Global Investments (AGI) acts as EMCAF's fund manager and the European Investment Bank as advisor to AGI. EMCAF focuses on investment in renewable energy and energy efficiency but also includes sustainable transport, forestry, rehabilitation/restoration of degraded land, water supply, wastewater and circular economy. The fund solely focuses on greenfield Investments.
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