Dubai, December 2: The United Arab Emirates (UAE) announced a significant commitment of $30 billion for its newly launched catalytic climate vehicle, ALTERRA, during COP28. ALTERRA aims to advance international efforts in creating a fair climate finance system, with a particular focus on improving access to financing for the Global South. With this commitment, ALTERRA becomes the world’s largest private investment vehicle for climate change action, with a goal of raising $250 billion globally by 2030.
ALTERRA’s primary focus is to mobilize private markets toward climate investing, particularly in emerging markets and developing economies where traditional investments have been limited due to perceived risks. This vehicle addresses the current challenges of climate finance, which is not readily available, accessible or affordable when needed. Emerging markets and developing economies are estimated to need $2.4 trillion annually by 2030 to address climate change.
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COP28, recognizing the need to fix climate finance, made it a key pillar of its action agenda and aimed to deliver ambitious solutions, including mobilizing private markets on a large scale. The launch of ALTERRA was described by COP28 President Sultan Al Jaber as a “defining moment”, marking a new era in international climate finance.
UAE President: Today, at the COP28 #WorldClimateActionSummit, I was honoured to announce the creation of a USD 30 billion fund that will foster transformative international partnerships towards achieving global climate solutions that promise a better future for all#COP28… pic.twitter.com/4LStkbyX1I
— WAM English (@WAMNEWS_ENG) December 1, 2023
ALTERRA will be chaired by Sultan Al Jaber, who is also COP28 President, and Ambassador Majid Al Suwaidi, Director-General of COP28, will serve as ALTERRA’s Chief Executive Officer. The vehicle will work with a dedicated team of climate investment professionals with experience in emerging and developing markets.
ALTERRA, founded by Lunet, an independent global investment manager, will be domiciled in Abu Dhabi Global Market. It is part of a broader set of finance-based initiatives launched during COP28 to accelerate the global transition to a low-carbon economy and enhance climate resilience. ALTERRA’s innovation structure will focus on supporting key priorities including the energy transition, industrial decarbonization, sustainable living and climate technologies, aligning with the COP28 Action Agenda.
