Allianz Global Investors (AllianzGI) and the European Investment Bank (EIB) have announced fresh capital commitments to the Emerging Market Climate Action Fund (EMCAF).

Announcing the news at this year’s COP 28, which is taking place in Dubai, the UK’s Foreign, Commonwealth & Development Office will commit £9 million, while on behalf of Germany’s Ministry for Economic Affairs and Climate Action, Kreditanstalt für Wiederaufbau (KfW) intends to top up its existing commitment with an additional €33 million.

With these new commitments, it is understood that EMCAF will likely hold its third close with a total of €385 million in the coming weeks.

“Trillions of dollars of investment per year is needed to combat the consequences of climate change in emerging markets, which means innovative funding mechanisms are necessary to mobilise the massive amounts of money needed,” said AllianzGI chief executive Tobias Pross. “That's where we as an active asset manager come in, leveraging our market and product know-how to design the type of investment vehicles needed to help bridge this financing gap.”

EMCAF was launched at the United Nations Climate Change conference COP26 in Glasgow in 2021 and has so far committed more than $100 million to five funds including the ARCH Cold Chain Solutions Fund aimed at establishing a cold-chain infrastructure in East Africa.

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