A $1 billion fund was launched this week for climate finance in emerging markets.
Around 40% of the Allianz Credit Emerging Markets fund will be deployed into ventures and programs in renewable energy, agriculture, and transportation in Africa, according to the UK’s British International Investment (BII) agency, which is the fund’s anchor investor.
Africa needs about $3 trillion to adapt to, and mitigate against, the effects of climate change. The ACE fund, which has so far secured $690 million in commitments, comes at a time when the US has pulled back on climate finance. But the UK has sought to expand its role in the sector, with BII pledging last year to ensure that at least 30% of its new commitments will be in climate finance.