As the COP28 climate conference in Dubai enters its second day, UAE President Sheikh Mohamed bin Zayed Al Nahyan has announced the establishment of a $30 billion climate investment fund that aims to attract $250 billion by the end of the decade.
“When the UAE committed to hosting COP28, we pledged to bring the world together to address shared challenges facing humanity,” His Highness noted on X, highlighting the need to foster “transformative international partnerships” towards creating a better future for all.
The catalytic climate vehicle, ALTÉRRA, is set to drive forward international efforts to create a fairer climate finance system, emphasising improving access to funding for the Global South that broadly refers to developing nations in Asia, Africa, Latin America and Oceania.
It will allocate $25 billion towards climate strategies and $5 billion to incentivise investment flows into the Global South. In collaboration with asset managers BlackRock, Brookfield and TPG, it has committed $6.5 billion to climate-dedicated funds for global investments.
Making Finance For Climate Action Accessible
ALTÉRRA has been established by Lunate, an Abu Dhabi-based alternative investment manager, owned by its senior management and Chimera Investment LLC – part of a business empire overseen by Sheikh Tahnoon, the national security adviser and the president’s brother.
COP28 President Sultan Al Jaber, also the Minister of Energy and Advanced Technology, head of the Abu Dhabi National Oil Company, and chairman of Masdar, is set to chair the board of the new climate investment fund, according to a statement.
Finance for climate action is not currently affordable or available. It is estimated that by 2030, emerging markets and developing economies will require $2.4 trillion annually to address climate change. That is why COP28 puts great efforts at fixing climate finance.
Al Jaber described the launch of the vehicle as a “defining moment” in the creation of a new era of international climate finance. Meanwhile, Ambassador Majid Al Suwaidi, COP28 Director-General, is set to serve as ALTÉRRA’s Chief Executive Officer.
Loss and Damage, Global Stocktake: In Focus
The Emirates sees itself as a bridge between the rich developed nations most responsible for historic emissions and the rest of the global community, that has contributed to relatively less to the climate emergency but suffers its brutal consequences.
The ongoing COP28 Summit in Dubai marked an early success on its first day as it recorded a historic deal on paying for climate disasters. In other words, the Loss and Damage Fund, intended to support countries disproportionately affected by climate disasters.
On Friday, a first working draft was circulated of the “global stocktake”, or a report card of how nations have been performing in meeting the Paris Agreement goals. The 12-page text of “building blocks” is a starting point for the two weeks of talks. It could go through revisions.
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The UAE is leading a process for all parties to agree upon a clear roadmap to accelerate progress through an effective global energy transition and a “leave no one behind” approach to inclusive climate action. The conference is convening 70,000 participants.
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