EIB, AllianzGI Announce $100 Mn for Renewable Projects at COP27

Nov 17, 2022 01:38 PM ET
  • EMCAF will certainly spend $25 million into Alcazar Energy Partners II which is a fund giving early-stage equity financing to create, construct and also operate renewable energy projects between East, North Africa, Eastern Europe as well as Central Asia.
  • Alcazar Energy Partners II has a target size of $500 million as well as will certainly purchase onshore wind, solar photovoltaic or pv to name a few.

The Emerging Market Climate Action Fund (EMCAF) has actually announced a $25 million investment right into Alcazar Energy Partners II, a fund providing early-stage equity funding to establish, construct as well as operate renewable energy projects in the center East, North Africa, Eastern Europe as well as Central Asia.

This commitment is in parallel to EIB Global, the committed arm for outside the EU of the European Investment Bank (EIB) Group, which gives $75 million to the fund.

The official declaration of EIB stated that Alcazar Energy Partners II has a target size of $500 million and will invest in onshore wind and also solar photovoltaic or pv, with added potential investments in hydropower, biomass or battery-based electrical power storage space or other low-carbon modern technologies.

EIB stated that the Fund is anticipated to produce 15.000 building jobs as well as add to the setup of over 2 GW of new clean energy capability, thereby conserving 3.2 million lots of greenhouse gas emissions per year, creating clean energy to power over one million households.

Ambroise Fayolle, Vice-President, EIB, stated, "To meet the Paris climate goals and reinforce global energy security, the globe's energy systems need to decarbonise immediately. To do this, the financial system requires to mobilise trillions of bucks from private sector green energy projects."

Tobias Pross, CEO, AllianzGI, added, "Emerging markets are where the cash for climate adaptation and reduction is required most as well as where it will certainly have a lot more prompt impact than in industrialized nations. I am proud that our EMCAF investments are currently getting traction on the ground in emerging markets-- not simply aiding to eliminate climate change, yet to sustain healthy and balanced economic growth in this region."

Daniel Calderon, Managing Partner, Alcazar Energy, mentioned, "AEP-II is fortunate to have the self-confidence of an outstanding group of public and also exclusive organizations to invest as well as create in renewable resource projects, mobilising greater than $2bn of foreign direct investment from OECD economic situations to develop sustainable facilities where it is needed most."

Launched during COP26 in November 2021 by the EIB and AllianzGI, EMCAF is a cutting-edge blended finance vehicle with a EUR600 million target. The federal governments of Germany and Luxembourg, the Nordic Development Fund, Allianz, Folksam Group and the EIB are its anchor investors.I. During its summit in Elmau (Germany) in June 2022, the Group of Seven (G7) nations backed EMCAF as an example of a concrete cutting-edge and also market-led technique to mobilising private investments for climate-relevant infrastructure and to boost multilateral financing as well as partnership.

EIB said that EMCAF has actually already made its first investment in the adaptation concentrated ARCH Cold Chain Solutions East Africa Fund, financing temperature-controlled storage space and also circulation framework in East Africa that aims to generate emissions reductions from post-harvest food loss.

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