Emerging Market Climate Action Fund (EMCAF) (C134)

Emerging Market Climate Action Fund (EMCAF) is an innovative blended finance Fund of Funds created in partnership by Allianz Global Investors (AllianzGI) and the European Investment Bank (EIB). The Fund provides highly catalytic early-stage equity financing to greenfield climate mitigation and adaptation projects in emerging and developing markets by backing fund managers and project developers active in the sector. The Fund will have long-lasting tangible impact by building up real assets on the ground as well as fuelling private market ecosystems that will sustain low carbon economy over long-term, allowing the target countries to become energy independent and resilient.


Emerging Market Climate Action Fund (EMCAF)

Ref. C134

Region: Global

Emerging Market Climate Action Fund

Ref. NDF C134

NDF Commitment: EUR 15,000,000
Project Period: 2021 – 2038
Partner Agency: European Investment Bank (EIB)

Implementing Agency: European Investment Bank (EIB) and Allianz Global Investors GmbH


EMCAF will mobilise institutional investment in climate change mitigation and adaptation activities in developing countries globally, with an emphasis on LICs and LMICs. Most of the investments will be made in renewable energy and energy efficiency, and as a diversification strategy the fund will also invest in sustainable transport, circular economy, sustainable forestry, and land use.

EMCAF will result in approximately 19.8 million tons of CO2 emission reductions, and it will also aim at improving the target countries’ adaptation capabilities and resilience against the climate change. EMCAF will also support many investee funds and fund managers in these countries, and by this build capacity in the fund management market in developing countries.

The main objectives are to:

  • Mobilise institutional investment in low- and lower middle-income countries; “from billions to trillions”: Fund of funds structure is a way to catalyse investments by mainstream institutional investors (large pension funds, insurance companies, etc.). According to Convergence, a global network for blended finance, the lack of institutional investment is among the key gaps preventing climate finance from scaling “from billions to trillions”

  • Mobilising investments in climate action: The EMCAF investee funds will mainly invest in infrastructure assets targeting climate change mitigation and adaptation. It is expected that renewable energy and energy efficiency sectors will represent a substantial majority of investments.

  • Building fund management capacity in climate finance in developing countries: There is still only a limited number of well-established and competent fund managers in the field of climate finance in developing countries. EMCAF is also an attempt to support the diversification and development of the fund management industry focusing on developing countries. In addition to fund managers with significant track record, EMCAF can also invest in early-stage fund managers.


Expected Outcomes

EMCAF targets the SDG 13 (Climate Action), primarily climate change mitigation but also adaptation. Based on an initial estimate, EMCAF will reduce 19.8 million tons of CO2, assuming the target size EUR 500 million. SDG 7 (Access to Energy) is another a central objective of EMCAF. The Fund will also target other SDGs, such as SDG 5 (Gender equality), 8 (Decent work and economic growth), 9 (Industry, innovation and infrastructure), 11 (Sustainable cities and communities) and SDG 17 (Partnerships for the goals).

The main expected outcomes of EMCAF will be;

  • Increased access to and production of affordable and sustainable clean energy

  • Strengthened climate- and disaster-resilience and adaptability of cities, human settlements and infrastructure  


EMCAF has a target size of EUR 500 million, of which 1/3 in the form of junior capital and 2/3 in the form of senior capital. In the initial closing, the junior tranche investors included NDF, KfW and the Luxembourg Ministry of the Environment, Climate and Sustainable Development, and the senior tranche investors included Allianz, Folksam and the European Investment Bank.

NDF Contact:

Program Manager: Aleksi Lumijärvi (Aleksi.lumijarvi@ndf.int)