United Arab Emirates News

UAE Launches $30 Billion Climate Fund and ALTÉRRA Investment Vehicle at COP28

The United Arab Emirates (UAE) has announced the creation of a $30 billion climate fund during the opening of the World Climate Action Summit at the UN Climate Change Conference (COP28) in Expo City Dubai. President Sheikh Mohamed bin Zayed Al Nahyan revealed the fund’s establishment to bridge the climate financing gap, aiming to catalyze $250 billion in investment by 2030. Additionally, the UAE launched the ALTERRA investment vehicle, a $30 billion initiative that stands as the world’s largest private investment vehicle for climate change action.

1. The $30 Billion Climate Fund:
The climate fund is designed to address the climate financing gap and facilitate affordable access to funds for global climate solutions.The fund aims to stimulate the raising and investment of $250 billion by 2030, contributing significantly to climate action projects and renewable energy endeavors.President Sheikh Mohamed bin Zayed Al Nahyan highlighted the UAE’s commitment to climate action, emphasizing the country’s previous investment of $100 billion in climate action, renewable, and clean energy projects. An additional investment of $130 billion is planned over the next seven years.The launch of the fund coincides with the unveiling of ALTERRA, a $30 billion investment vehicle aimed at attracting private capital and mobilizing $250 billion globally by 2030. ALTERRA will focus on climate investments, especially in emerging markets and developing economies.

2. ALTERRA Investment Vehicle:
ALTERRA is described as a transformational solution for attracting private capital with a unique scale and structure, creating a multiplier effect in climate-focused investment.ALTERRA is set to lead the way in creating a fairer climate finance system, focusing on improving access to funding for the Global South, where traditional investment has been limited due to perceived risks. ALTÉRRA has an innovative two-part structure, comprising ALTERRA ACCELERATION and ALTÉRRA TRANSFORMATION, to incentivize policy frameworks, identify solutions, and deploy capital across the entire value chain of the new climate economy.ALTÉRRA will prioritize supporting key climate action priorities, including energy transition, industrial decarbonization, sustainable living, and climate technologies.

3. Investment Commitments:
ALTERRA has secured commitments from partners like BlackRock, Brookfield, and TPG, pledging $6.5 billion to climate-dedicated funds for global investments, including the Global South.Immediate capital investment from ALTERRA is earmarked for the development of over 6 GW of new clean energy capacity in India, with projects in wind and solar sectors.

4. Climate Impact Framework:
ALTERRA will establish a Climate Impact Framework to ensure positive climate transformation, aligning with international best practices for accountability, transparency, and adherence to collective climate objectives.

The launch of the $30 billion climate fund and the ALTERRA investment vehicle underscores the UAE’s commitment to global climate action and sustainability, providing substantial financial support to advance climate solutions and accelerate the transition to a low-carbon economy.

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