Enviro News Asia, Luxembourg – The Green Climate Fund (GCF) and the European Investment Bank (EIB) have finalized a landmark financing agreement designed to accelerate climate action in 10 emerging economies by mobilizing billions of dollars in private investment for sustainable infrastructure and low-carbon development.
Under the agreement, GCF will invest USD 233 million in the Global Green Bond Initiative (GGBI), a flagship European Union-backed programme aimed at expanding climate finance in developing markets. The initiative will be managed by Amundi, Europe’s largest asset manager, through a blended-finance investment vehicle targeting USD 3.5 billion (EUR 3 billion) in capital.
The fund is expected to mobilize up to USD 23.2 billion (EUR 20 billion) in private-sector financing for climate-related projects, helping address persistent funding gaps that have slowed the implementation of sustainable infrastructure in many low- and middle-income countries.
The financing package will support climate action initiatives in Angola, Bangladesh, Brazil, Cameroon, Côte d’Ivoire, Egypt, Kenya, Namibia, Senegal, and Uganda, with investments expected to focus on sectors including clean energy, sustainable transport, and climate-resilient infrastructure.
According to GCF, its equity investment will play a catalytic role by reducing investment risks and attracting additional private capital into projects that support national climate priorities.
Amer Baig, Chief Investment Officer (a.i.) of the Green Climate Fund, said the initiative represents a significant step toward expanding access to climate finance in developing economies.
“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,” Baig said.
He added that the partnership with the European Commission and the European Investment Bank would strengthen country ownership of climate action while helping address critical financing shortages.
“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. The partnership supports GCF’s ambition to be the climate partner of choice for developing countries,” he said.
The European Investment Bank described the agreement as an example of how international cooperation can leverage public resources to generate larger-scale climate investments.
EIB Vice-President Ambroise Fayolle said the collaboration demonstrates the growing role of multilateral institutions in supporting sustainable development and resilience in emerging markets.
“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,” Fayolle said.
As the financing arm of the European Union, the EIB works with member states and development partners to expand investment in strategic sectors, including climate mitigation and adaptation.
Meanwhile, Amundi Chief Executive Officer Valérie Baudson said the new fund highlights the potential of blended-finance models to attract both public and private investors to climate-related projects.
“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,” Baudson said.
She emphasized that climate transition financing in emerging markets remains one of the world’s most pressing development challenges.
“The GGBI fund aims to mobilise public and private capital to finance climate transition in emerging markets. 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,” she added.
The agreement comes as developing countries continue to seek greater access to affordable climate finance to meet their emissions reduction targets and strengthen resilience against increasingly severe climate impacts. By combining public investment with private-sector participation, the Global Green Bond Initiative aims to create a scalable model capable of accelerating climate solutions while supporting sustainable economic growth across emerging markets. (*)
