Alcazar Energy Partners II is a fund providing early-stage equity financing to develop, construct, and operate renewable energy projects in the Middle East, North Africa, Eastern Europe and Central Asia.

Alcazar Energy is a Luxemburg domiciled sustainable infrastructure fund focused on utility scale renewable energy projects in emerging markets. The company has a  number of projects in Egypt’s Benban Solar Plant.

EIB said the commitment comes in line with its EIB Global, the group's arm outside the EU, which provides $75 million to the fund.

Alcazar Energy Partners II has a target size of $500 million and will invest in onshore wind and solar photovoltaic, with additional potential investments in hydropower, biomass, battery-based electricity storage, or other low-carbon technologies.

The fund is expected to create 15,000 construction jobs and contribute to the installation of over 2 Gigawatts of new, clean energy capacity while saving 3.2 million tons of greenhouse gas emissions per year and generating clean energy to power over one million households, according to EIB.

EMCAF is a blended finance fund initiated jointly by the EIB and Allianz Global Investors (AllianzGI) during the COP26 to finance climate mitigation and adaptation as well as environmental projects in Africa, Asia, Latin America, and the Middle East with a €600 million target.

The governments of Germany and Luxembourg, the Nordic Development Fund, Allianz, Folksam Group and the EIB are its anchor investors.

EMCAF provides early-stage financing to greenfield climate transition infrastructure in emerging and developing markets and focuses on climate mitigation, climate adaptation, and environmental projects.

EMCAF has already made its first investment in the adaptation focused ARCH Cold Chain Solutions East Africa Fund, financing temperature-controlled storage and distribution infrastructure in East Africa that aims to generate emissions reductions from post-harvest food loss.

The project comprises storage, distribution, and related services and activities that maintain a given temperature range for a product or range of products.

“To meet the Paris climate goals and strengthen global energy security, the world’s energy systems must decarbonise as soon as possible. To do this, the financial system needs to mobilise trillions of dollars from private sector green energy projects. I am delighted that we are announcing investments from EMCAF and EIB Global in the Alcazar Energy Partners II Fund today. This support will help crowd in further contributions from investors and ensure that the fund plays an important role in accelerating the green transition in its countries of operation”, said EIB Vice-President Ambroise Fayolle.

CEO of AllianzGI Tobias Pross noted that emerging markets are where the money for climate adaptation and mitigation is needed most and where it will have a much more immediate impact than in developed countries, adding that such an investment will contribute to fighting climate change and supporting healthy economic growth in this region as well.