The International Finance Corporation (IFC), the World Bank’s investment arm, is setting aside new funds that will address infrastructure gaps and cut carbon emissions in emerging economies.

The $50 million in equity will bolster A.P. Moller Capital’s $1 billion Emerging Markets Infrastructure Fund, whose initiatives are geared towards increasing job opportunities, fostering GDP growth and tackling poverty, supply chain disruptions and climate change.

The fund will be invested in Africa and South and Southeast Asia, with focus on transport infrastructure like ports, storage, roads, rail, warehouses and distribution, according to a statement.

Part of the fund will also be invested in renewable energy and distribution infrastructure, and is committed to mitigating climate change, with a target to reduce greenhouse gas emissions by at least 25% in its transport infrastructure assets.

“We look to increase sustainable investments in green energy and transport in high-growth markets in Asia and Africa,” said Kim Fejfer, Managing Partner and CEO at A.P. Moller Capital.

IFC has pledged and mobilised more than $10 billion to support sustainable transport projects in emerging markets over the last ten years.

Emerging economies have seen underinvestment in their transport sectors, hampering socio-economic growth.

“Meanwhile, persistent underinvestment means that despite accommodating more than half of the world’s population in 2022, Africa, Southeast Asia and South Asia together represent only 16% of the world’s total primary energy consumption,” the statement said.

(Writing by Cleofe Maceda; editing by Seban Scaria)