- UAE launches $30 billion ALTÉRRA fund for global climate solutions. This is the world’s largest private climate change investment vehicle.
- The fund aims to mobilize $250 billion in total climate investments by 2030. It will focus on transforming emerging markets through increased climate financing.
- ALTÉRRA seeks to bridge the climate financing gap, increase access to affordable financing, and spur private capital especially where investment is lacking.
The United Arab Emirates (UAE) has announced a groundbreaking $30 billion fund aimed at accelerating global efforts to combat climate change. Dubbed ALTÉRRA, the fund seeks to mobilize private capital and spur climate-friendly investments in emerging markets and developing economies.
عندما التزمنا باستضافة (COP28)، التزمنا بجمع العالم لتقديم حلول عملية لتحدي التغير المناخي. وبالنظر إلى أن من أكبر العوائق أمام العمل المناخي العالمي نقص التمويل بصورة ميسرة وتكلفة مناسبة، أعلنا اليوم خلال القمة العالمية للعمل المناخي عن إنشاء صندوق بقيمة 30 مليار دولار للحلول…
— محمد بن زايد (@MohamedBinZayed) December 1, 2023
Unveiled by UAE President Sheikh Mohamed bin Zayed Al Nahyan at the COP28 climate summit, ALTÉRRA represents the world’s largest private investment vehicle dedicated to climate change solutions. It aims to bridge the substantial climate financing gap and increase access to affordable financing where it is most needed.
“When we committed to hosting COP28, we committed to bringing the world together to provide practical solutions to the challenge of climate change,” Sheikh Mohamed said. “Given that one of the biggest obstacles to global climate action is the lack of financing in an accessible and affordable manner, today we announced the establishment of a $30 billion fund for climate solutions worldwide.”
By 2030, ALTÉRRA intends to mobilize $250 billion in total climate investments globally. It will focus especially on transforming emerging markets, where lack of investment has hampered climate progress. The fund launch comes as estimates indicate emerging markets require $2.4 trillion per year by 2030 to address climate change.
COP28 President Dr. Sultan Al Jaber hailed the fund’s launch as a “defining moment” in establishing a new era of international climate finance. Experts say ALTÉRRA’s scale and focus on emerging markets set it apart from other climate funds. It represents an unprecedented UAE-led effort to unlock private climate capital at the speed and scale required to meet global climate goals.
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Last Updated on December 1, 2023 by Safiya K
