Investment strategy

Emerging Market Climate Action Fund (“EMCAF”) is a cooperation of public and private partners for climate. EMCAF’s blended finance structure has mobilised equity financing at scale to develop a stream of bankable climate mitigation and adaptation projects at scale. Over its life, EMCAF is expected to catalyse approximately 9-10 GW of clean energy capacity.

What is the approach of EMCAF?

EMCAF is a global fund of funds strategy investing private equity funds in emerging and developing markets.

EMCAF follows triple bottom line approach – People. Planet. Prosperity. Strict application of the Environmental & Social (“E&S”) standards of the European Investment Bank ensures that potential negative impacts are mitigated and maximum positive impact of those projects in environmental, social as well as developmental areas is reached.

View the E&S Policy of the Fund

EMCAF backs fund managers and developers who develop commercially viable climate mitigation, adaptation and resilience as well as other climate-related projects in emerging and developing countries.

EMCAF will aim to accelerate the achievement of at least ten of the SDGs, with a particular focus on SDG 5 (Gender Equality), SGD 7 (Affordable and Clean Energy), 13 (Climate Action) and 17 (Partnerships for the Goals) to deliver affordable/clean energy and pursue climate action with a public-private partnership.

Which funds does EMCAF target?

EMCAF primarily invests in fund structures but may selectively also invest in corporate structures and/or co-investments. It backs experienced local investment teams that develop bankable projects with clear business models. Typically, this is achieved by supporting underlying assets, which provide steady and predictable cash flows.

Based on its thematic focus on climate mitigation and climate adaptation and environment, EMCAF targets the following sectors:

The primary focus is on RE generation infrastructure projects in development/greenfield stage. All underlying projects will secure long-term contractual revenues and bankability through power purchase agreements, feed-in tariffs or similar.

Underlying funds will also focus on equity and quasi-equity investments in energy efficiency projects. Energy efficiency projects act as a good complement to equity participations in renewable energy projects: they typically provide for early and constant cash re-flows thanks to shorter development and construction cycle and lower exit risk due to their self-liquidating nature.

Opportunistic investments include participations in other climate mitigation (sustainable transport, forestry and sustainable land use, and access to energy) as well as climate adaptation and environmental solutions (circular economy, pollution abatement, land rehabilitation and ecosystem services).

The following eligibility requirements need to be met by the target funds:

  1. Strong technical and private equity transaction skills of the investment teams
  2. A regional focus with established local presence and networks to generate deal flow
  3. A strong technical commitment to promotion of environmental, social and governance (“ESG”) standards

For fund manager: If your fund might be eligible as target fund, please feel free to reach out to us at

How is risk managed in the fund?

EMCAF is structured as a risk-layered fund vehicle that combines public and private capital. A junior tranche is funded by public investors and serves to mobilise the private investors into the senior tranche. Private investors in the fund’s senior tranche investors benefit from priority distributions and downside protection provided by the junior tranche, which represents c. 30% of the fund size.

The structure of the fund creates attractive risk-adjusted returns, helping senior investors to overcome risk aversion and regulatory constraints associated with investments in the early-stage development, construction and operation of clean energy projects in emerging and developing markets.

EMCAF envisaged structure and involved parties

Diagram illustrating the structure of an investment fund

Who will benefit from the EMCAF initiative?

The fund will commit capital to market-oriented private funds with a strong and proven track record in the private sector. 
The fund provides financing to fund managers that develop commercially viable climate mitigation and climate adaptation projects in emerging markets and developing countries. During its life, EMCAF is expected to finance 150+ projects across the full thematic spectrum of climate mitigation and adaptation, including renewable energy, energy efficiency, water, forestry, circular economy and others.
In addition to financial returns to its investors, the fund is designed to generate a measurable positive impact on the environmental and social conditions required to increase investment flows to the region. EMCAF will also aim to accelerate the achievement of at least ten of the SDGs, with a particular focus on SDG 5 (Gender Equality), SGD 7 (Affordable and Clean Energy), SDG 13 (Climate Action) and SDG 17 (Partnerships for the Goals)
The fund aims to act as role model and mobilise additional capital into the region in the future, in an effort to reduce the much-needed funding gap in these countries.

EMCAF Key Facts and Figures

EMCAF fund size

Up to EUR 500mn

EMCAF fund currency


Inception date

Q4 2021


Luxembourg SCSp fund of fund vehicle

Expected number of commitments to target funds

12-15 Funds, leading to 150+ projects 

Planned investment phase

5 years from the final close 

Fund lifetime

Fund term: 17 years from the final close (+2 years optional extension) 

Target sectors

Renewable energy, energy efficiency and opportunistic

Investment strategy standards

Environmental & Social („E&S“) standards of the European Investment Bank 
Environmental and Social Management System (ESMS) of EMCAF 

Website for the Emerging Markets Climate Action Fund, an initiative together with the European Investment Bank. The fund is approved by the BaFin, but we do not seek external investors for this fund. The website is for image and information purposes only, specifically for certain persons having professional investment experience or potential target funds .

Multi-Asset private impact investments are highly illiquid and designed for professional investors pursuing a long-term investment strategy only.

This document does not constitute an offer to sell or a solicitation of an offer to buy interests in any strategy or investment product sponsored or managed by Allianz Global Investors, but is only intended to provide general information about the strategy and may not be relied upon in connection with any offer or sale of securities.

The views and opinions expressed herein, which are subject to change without notice, are the views and opinions of the issuer and / or affiliates at the time of publication. The data used come from various sources and are believed to be correct and reliable. The terms and conditions of all underlying offers or contracts that have been or will be made or concluded take precedence. This document does not contain any statements about the suitability of the investments described here for the individual circumstances of a recipient. This is a marketing communication issued by Allianz Global Investors GmbH,, an investment company with limited liability, incorporated in Germany, with its registered office at Bockenheimer Landstrasse 42-44, 60323 Frankfurt/M, registered with the local court Frankfurt/M under HRB 9340, authorised by Bundesanstalt für Finanzdienstleistungsaufsicht ( Allianz Global Investors GmbH has established branches in France, Italy, Spain, Luxembourg, Sweden, Belgium and the Netherlands. Contact details and information on the local regulation are available here ( The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted; except for the case of explicit permission by Allianz Global Investors GmbH.

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