The Green Climate Fund (GCF) and the European Investment Bank (EIB) have sealed a landmark financing agreement that will provide a big boost to climate action in 10 emerging markets across the world.

Under the agreement, GCF is committing USD 233 million to the Global Green Bond Initiative (GGBI), a flagship European Union programme. Amundi, Europe’s largest asset manager, will run the GGBI Fund, a public‑private investment vehicle with a target of USD 3.5 billion (EUR 3 billion). The GGBI Fund aims to mobilise as much as USD 23.2 billion (EUR 20 billion) in private capital for sustainable infrastructure projects in low- and middle-income countries.

GCF Chief Investment Officer (a.i.) Amer Baig said: “GCF’s USD 233 million equity investment in the Global Green Bond Initiative will de-risk investments in 10 emerging economies. This equity will stimulate country-led green projects that deliver climate solutions in critical sectors such as energy and transport. This initiative is a landmark partnership with the European Commission and European Investment Bank that will enhance country ownership of national climate action and fill critical gaps in climate financing gaps. The partnership supports GCF’s ambition to be the climate partner of choice for developing countries.”

EIB Vice-President Ambroise Fayolle said: “Our partnership with GCF shows how multilateral cooperation can scale up climate action where it is needed most. Together, we are supporting sustainable growth, resilience and better living standards in low- and middle-income countries.” The European Investment Bank Group is the financing arm of the European Union and is owned by the EU’s 27 Member States.

Chief Executive Officer of Amundi Valérie Baudson said: “The creation of the Global Green Bond Initiative Fund, and this first significant commitment from the Green Climate Fund demonstrates that we can build impactful blended finance investment solutions. The GGBI fund aims to mobilise public and private capital to finance climate transition in emerging markets – one of the defining challenges of our time. Expertise, innovation and collaboration are essential levers to direct capital where it is needed most. We are very proud to be part of this collective initiative.”

GCF’s investment in the Initiative will support climate action in the following 10 countries: Angola, Bangladesh, Brazil, Cameroon, Cote d’Ivoire, Egypt, Kenya, Namibia, Senegal, and Uganda.