Summary sheet
Emerging Market Climate Action Fund (EMCAF) will be a fund-of-funds targeting EUR 500 million to invest in funds providing funding to climate mitigation and climate adaptation, as well as environmental sustainability projects in developing countries. It will be managed by Allianz Global Investors, to which the EIB will act as investment advisor.
The resources of the Fund will be utilised to provide financial support to infrastructure and climate funds, which will finance greenfield climate adaptation and mitigation projects in developing countries (non-OECD), in addition to environmental projects. The projects will contribute to avoiding or reducing greenhouse gas emissions.
The operation concerns a senior equity investment of up to EUR 50m in the Emerging Market Climate Action Fund ("EMCAF" or "Fund), a new fund-of-funds with a target size of EUR 500m managed by Allianz Global Investors and advised by the EIB.
In line with the new EU Consensus on Development and other policy statements, EMCAF will support funds investing in Paris-aligned climate mitigation (mainly renewable energy and energy efficiency), climate adaptation and environmental sustainability projects in developing countries (aligned with Nationally Determined Contributions (NDC)).
The operation will contribute to a number of Sustainable Development Goals, (7 and 13, but also 6,8,9,11,14,15, 17).
The operation will address the market failure of negative climate and environmental externalities, mobilising equity investments for the reduction of carbon emissions and air pollution, as well as for climate adaptation and environmental sustainability projects.
EMCAF is an innovative example of a public-private partnership addressing this market gap. Through its signalling effect, the EIB's commitment will crowd-in additional private investments into this new climate action initiative.
The standards applied by the Fund and its strategy benefit from the Bank's interactions with the promoter during appraisal, and the involvement of the EIB as investment advisor.
The Bank will require that the funds to be financed ensure that all investments are compliant with EIB social and environmental standards and guidelines. The capacity of the fund manager to assess and monitor environmental and social impact and risks of the individual investments to the satisfaction of the Bank will be further assessed during appraisal.
The Bank will require the fund to ensure that all EIB-eligible investments are implemented in accordance with the Bank's Guide to Procurement.
Disclaimer: This information is not an intended offering by AllianzGI for investors.