COP28: UAE presidents announces $30 billion climate fund

COP28: UAE presidents announces $30 billion climate fund

Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates speaks during the World Climate Action Summit Opening Session at Al Waha Theater during the UN Climate Change Conference COP28 at Expo City Dubai on Dec 1,

DUBAI, UAE, Dec 2: President Sheikh Mohamed Bin Zayed Al Nahyan welcomed global leaders to the World Climate Action Summit (WCAS) at COP 28 by introducing a $30 billion fund named Altérra. This initiative aims to address the climate finance gap, with the goal of stimulating $250 billion in investments by 2030.

Speaking at COP28 in Expo City Dubai, Sheikh Mohamed emphasized the UAE's commitment to accelerating the world's transition to a low-emission growth economy. He highlighted the persistent challenge of a lack of readily available and affordable climate finance as a major obstacle to global climate action.

To tackle this issue, the President announced the establishment of the $30 billion Altérra fund, specifically designed to bridge the climate finance gap, ensuring availability, accessibility, and affordability at scale. The primary objective is to stimulate $250 billion in investments by 2030.

This announcement follows the UAE's pledge of $100 toward the loss and damage fund million established during COP27 in Sharm El Sheikh, Egypt. Altérra, chaired by COP28 President and Adnoc Chief Dr. Sultan Al Jaber, will drive international efforts to create a fairer climate finance system, with a focus on improving access to funding for the Global South.

Altérra, established by Lunate, an independent global investment manager, and domiciled in the Abu Dhabi Global Market, becomes one of the world's most substantial private investment vehicles for climate change action with this $30 billion commitment. It aims to attract private capital, particularly in emerging markets and developing economies where traditional investment has been lacking due to perceived risks.

The fund, structured with a two-part approach, will focus on energy transition, industrial decarbonization, sustainable living, and climate technologies. Altérra Acceleration, a $25 billion component, will steer institutional capital toward scalable climate investments, serving as an anchor and co-investor. Altérra Transformation, a $5 billion component, will provide risk mitigation capital to incentivize investment flows into the Global South.

Additionally, Altérra, in collaboration with BlackRock, Brookfield, and TPG as inaugural launch partners, has committed $6.5 billion to climate-dedicated funds for global investments, including the Global South. The fund's unique scale and structure are expected to create a multiplier effect, making it a transformative vehicle in the realm of climate-focused investment.

The post COP28: UAE president announces $30 billion climate fund first appeared on ARAB TIMES – KUWAIT NEWS.

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