The EIB, the Nordic Development Fund, Allianz, and Folksam are the anchor investors, according to the EIB.

The EMCAF is a fund that supports climate-focused investment funds and projects active in emerging markets and developing countries that will focus on climate mitigation, climate adaptation, and access to electricity in developing countries.

With a target size of €500 million, the EMCAF is aiming to become a European flagship impact investing initiative, mobilising substantial amounts of private capital to get climate action projects off the ground in Africa, Asia, Latin America, and the Middle East, the EIB pointed out.

The fund’s investments are also expected to support a significant amount of new clean energy capacity globally.

“As world leaders meet in Glasgow, this is a pivotal time for the planet. That’s why I am delighted to see the joint efforts spearheaded by the EIB and Allianz Group to enhance support for developing countries and help mobilise green finance to meet the Paris Agreement’s goals,” said President of the Conference of the Parties (COP26) in Glasgow Alok Sharma.

EIB Vice-President Ambroise Fayolle noted that supporting climate projects in emerging and developing countries is the key to meeting the Paris Agreement’s climate goals and to boosting economic activity on the ground.

“As the EU climate bank, we have much experience with innovative financial instruments that mobilise private capital at scale. Launching the EMCAF sends an important signal to the COP26 conference about the power of public-private partnerships to bridge the climate finance gap,” he added.

On his side, CEO of AllianzGI Tobias Pross expounded that the COVID-19 pandemic has revealed some profound inequalities.

He noted that the pandemic is thought to have magnified the existing funding shortfall needed to meet the UN’s Sustainable Development Goals by 2030 in developing countries, adding that many investors have become increasingly aware of the role their capital can and should play in addressing these imbalances.

During the COP26, there were calls from number of developing countries to raise the global commitments dedicated to counter climate change to up to $1 trillion, up from the $100 billion allocated in 2009.

Also, they called on advanced economies to live up to their financial commitments through 2030 and 2050.

Furthermore, the UK’s COP26 presidency issued a Climate Finance Delivery Plan that will provide clarity on when and how developed countries will meet the pledged $100 billion climate finance.

According to an analysis made by the Organisation for Economic Cooperation and Development, developed countries are expected to achieve great progress towards this goal in 2022 and that will enable them to meet the goal in 2023.

It also projected that developed countries can mobilise more than $100 billion per year thereafter through 2025.