The European Investment Bank (EIB) and Allianz Global Investors (AllianzGI) have launched the Emerging Market Climate Action Fund (EMCAF) as a public and private partnership with the Governments of Germany and Luxembourg, the Nordic Development Fund, Allianz, Folksam and EIB being anchor investors.

EMCAF is a fund of funds, which will support climate-focused investment funds and projects in emerging markets and developing countries. With a target size of EUR500 million (US$578.60 million), the fund will be focused on climate mitigation and adaptation, as well as access to electricity.

The fund invests into funds, which support projects like onshore wind farms and solar photovoltaic plants or hydropower plants, as well as energy efficiency projects in housing or industry, or projects with environmental or resource efficiency benefits. EMCAF may also finance projects that support cities and their public transport systems.

Several partners have already committed to investing in the fund- the EIB has committed EUR50 million (US$57.8 million), Allianz Group companies up to EUR200 million (US$231.45 million) and Folksam Group another EUR150 million (US$173.58 million). BMU has committed EUR25 million (US$28.93 million), the Nordic Development Fund (NDF) and the Government of Luxembourg each EUR15 million (US$17.36 million).