EIB, Allianz fund arm back 500 million euro public-private climate fund -Breaking
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© Reuters. FILE PHOTO A photovoltaic system is used to power a solar power plant near Mainburg in the Bavarian capital Munich. This was October 20, 2021. REUTERS/Lukas BarthBy Simon Jessop
GLASGOW (Reuters). The European Investment Bank, Allianz (DE) Global Investors announced on Monday that 500 million euros (or $577.5 million) will be raised for a fund to support climate mitigation and adaptation in developing nations.
Emerging Market Climate Action Fund, a fund of funds, was announced as the latest announcement at the COP26 climate negotiations in Scotland. This is a way for public and private investors to come together to support the global climate goal.
EIB/AllianzGI will invest in the fund, along with the Governments of Germany/Luxembourg, Nordic Development Fund and AllianzGI’s parent Allianz. Folksam is the Swedish insurance company.
EMCAF is a climate-focused fund that will also invest in projects and funds. The EMCAF aims for a “flagship initiative impact investing initiative”. This style of investing aims track and measure impact and the financial results it backs.
It plans to start climate projects in Africa and Latin America, Asia and the Middle East, including renewable energy, efficiency in industry or housing, as well as adapting infrastructure for greater resilience.
The fund’s investors will be provided with reports that detail the results, including the production of renewable energy and the reduction in carbon emissions.
Ambroise Fayolle, Vice President of EIB, stated that supporting climate projects in developing and emerging countries is key to meeting Paris’ climate goals as well as boosting the economy on the ground.
“This sends an important signal to the COP26 conference about the power of public-private partnerships to bridge the climate finance gap.”
The EIB, as investment advisor, will identify and assess potential investments. AllianzGI will manage it.
Tobias Pross, chief executive of AllianzGI said that many investors are becoming more aware of how their capital could and should be used to address these imbalances.
“Impact investing can help to combine the twin goals of “doing good” and “earning a return” in a single investment.”
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