COP28 Exclusive: ALTÉRRA Fund Launch by UAE President Sets New Climate Goals

In a groundbreaking announcement at COP28, UAE President Sheikh Mohammed Bin Zayed Al Nahyan introduced Alterra, a colossal $30 billion climate fund. Aimed at driving global climate solutions, ALTÉRRA aspires to attract a staggering $250 billion in investments by the decade’s end.

COP28 President Dr. Sultan Al Jaber termed ALTÉRRA’s launch a “defining moment” in international climate finance. ALTÉRRA will be chaired by Dr. Al Jaber, and Ambassador Majid Al Suwaidi will serve as its CEO, marking a significant stride in the global transition to a low-carbon economy.

Fund Allocation:

– $25 billion dedicated to climate strategies.

– $5 billion to incentivize investment flows into the Global South.

Collaborative Initiatives:

In partnership with global asset managers BlackRock, Brookfield, and TPG, ALTÉRRAhas committed $6.5 billion to climate-dedicated funds for global investments, including the Global South.

Private Market Steering:

ALTÉRRA, in collaboration with BlackRock, Brookfield, and TPG, seeks to guide private markets towards climate investments. The focus is on transforming emerging markets and developing economies, addressing the traditional investment gap due to perceived risks in these geographies.

Strategic Investments:

• BlackRock’s climate transition-oriented private debt strategy receives a $1 billion infusion from ALTÉRRA.
• ALTÉRRA commits $1 billion to invest in or co-invest alongside BlackRock’s infrastructure equity business.
• Brookfield Asset Management launches a catalytic transition fund focusing on developing countries, backed by up to $1 billion from ALTÉRRA.
• ALTÉRRA pledges $2 billion to its second Brookfield global transition fund.

Lunate’s Role:

• ALTÉRRA finds its roots in Lunate, a recently established Abu Dhabi-based alternative investment manager boasting over $50 billion in assets.
• Lunate, owned by its senior management and Chimera Investment, overseen by Sheikh Tahnoon bin Zayed Al Nahyan, reflects the UAE’s commitment to climate action amid concerns over expanding oil and gas production.

Know The Global Impact amid Criticisms:

The UAE’s announcement comes amid criticisms of its plans to increase oil and gas production. The country emphasizes a broader commitment to encourage finance and business to contribute significantly to the global climate fight.

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Expectations at COP28:

With ALTÉRRA’s unveiling, the UAE signals a proactive stance in supporting climate initiatives. Anticipation is high for further financial commitments and contributions throughout the two-week UN climate summit.

UAE’s ALTÉRRA emerges as a pivotal force in shaping global climate finance, setting ambitious goals to drive sustainable transformations and bridge critical investment gaps, particularly in the Global South. The announcement underscores the country’s determination to play a leading role in the fight against climate change.

The board of the new climate investment fund will be chaired by COP28 President Sultan Al Jaber, who also holds positions as the Minister of Energy and Advanced Technology, head of the Abu Dhabi National Oil Company, and chairman of Masdar, as stated in a recent announcement.

Finance for climate action is currently neither affordable nor available. By the end of the decade, emerging markets and developing economies will need a staggering $2.4 trillion each year to tackle the pressing issue of climate change. That is why COP28 made significant efforts to address climate finance.

Al Jaber expressed his enthusiasm for the vehicle’s launch, calling it a significant milestone in the development of global climate finance. Meanwhile, Ambassador Majid Al Suwaidi, COP28 Director-General, will be taking on the role of ALTÉRRA’s Chief Executive Officer.

“Global Stocktake”, ALTÉRRA Made Waves On The 2nd Day Of COP28 Following Their Announcement Of The Loss And Damage Fund On The Day1.

On the first day of the ongoing COP28 Summit in Dubai, a historic agreement on paying for the climate crisis was reached. In other words, the ‘Loss and Damage Fund‘ is intended to assist countries that have been disproportionately impacted by the climate crisis.

COP28 Day-2 has initiated the crucial task of conducting a “global stocktake,” presenting a preliminary 12-page draft that assesses global progress toward the Paris Agreement’s 1.5°C goal. The document highlights concerns about insufficient collective efforts and a diminishing window for vital actions. Key energy discussions are left open-ended, considering options like “phase-down/out of fossil fuels” and “phase-down/out/no new coal.”

The draft underscores the significance of safeguarding nature and ecosystems, deferring specific actions on deforestation, agriculture, and oceans for further deliberation. Countries are urged to integrate the global stocktake’s outcomes into their forthcoming climate policies due by COP30 in 2025.

From the pre-COP28 meetings we have noted the UAE’s clear stance on a “leave no one behind” approach to inclusive climate action. The conference is convening 70,000 participants and the UAE is hosting and presenting the climate agenda.