Press Release from 2023-12-05 / DEG

DEG: USD 50 million for net zero infrastructure fund

Participation in the Emerging Markets Infrastructure Fund II

DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH is investing in the transition to a climate-friendly economy with a contribution of USD 50 million to the Emerging Markets Infrastructure Fund II (EMIF II) managed by A.P. Moller Capital. The fund will focus on investments in transport infrastructure and renewable energy in selected high growth markets in South and South East Asia and Africa that resolve local logistical bottlenecks and generate green electricity.

Investment in renewable energy and transport infrastructure in Asia and Africa

EMIF II will seek to achieve net zero through setting science-based targets aligned with the Paris Accord and by reducing greenhouse gas emissions for its transport investments by a minimum 25%, amongst others. As part of its net zero strategy, EMIF II calculates the carbon footprint of each of its portfolio companies, as well as introduces measures to reduce it.

Besides DEG, other investors in the fund include global institutional investors. The fund is targeting a fund size of USD 1.0 billion.

Signing during the COP28 summit

“The transition to a climate-neutral economy is particularly challenging for emissions-intensive industries such as the transport sector. With our participation in EMIF II, we’re participating in the decarbonization of this industry via the fund’s net zero strategy. DEG is also focusing on climate-friendly investments that have a strong impact, with the aim of achieving climate neutrality by 2040,” said Monika Beck, member of DEG’s Management Board, when the contract was signed at the COP28 global climate conference in Dubai.

“This partnership is an excellent opportunity to further our ethos of ‘doing well while doing good’ as we look to increase sustainable investments in transport and renewable energy in high growth markets in Asia and Africa,” said Kim Fejfer, Managing Partner and CEO at A.P. Moller Capital. “We have made it a priority to work with partners who are as invested as we are to build sustainable businesses that seek to support society through economic and social development.”

EMIF II’s first investments include an air cargo logistics company in Egypt and a cold chain logistics company in South Africa.

EMIF II is the second fund by the fund manager A.P. Moller Capital, founded in 2017 and part of the A.P. Moller Group, after the Africa Infrastructure Fund I. The global shipping company A.P. Moller - Maersk also belongs to the A.P. Moller Group.

As one of Europe’s largest development financing institutions, DEG has focused even more strongly on climate-friendly investments with a strong impact since 2022. DEG’s renewable energies portfolio is currently worth around EUR 1 billion. The co-financed energy suppliers produced 35 TWh of electricity from renewable sources for over 33 million people in 2022, thereby avoiding more than 24 million tonnes of CO2 emissions.