UAE Unveils $30 Billion Fund For Global Climate Solutions At COP28

 

The United Arab Emirates, playing host to COP-28, has made a groundbreaking commitment of US$30 billion to ALTERRA, a climate initiative by Lunate, the world’s largest private climate investment vehicle. This privately managed fund aims to mobilize a staggering US$250 billion globally by 2030, focusing on climate investments to reshape emerging markets and developing economies.

Clean Energy Boost for India

Part of the initial tranche of funding has been allocated to develop over 6.0 GW of new clean energy capacity in India. This includes the establishment of 1,200 MW of wind and solar projects, set to commence clean power production by 2025.

Leadership and Structure of ALTÉRRA

COP-28 President, Sultan Ahmed Al Jaber, will chair ALTERRA, with Majid Al Suwaidi serving as its Chief Executive Officer. Established by Lunate, an independent global investment manager, ALTERRA is domiciled in the Abu Dhabi Global Market.

ALTERRA’s Transformative Role

According to Mr. Al Jaber, ALTERRA provides a transformative solution for attracting private capital, with its scale and structure creating a multiplier effect in climate-focused investment. This launch aligns with the COP Presidency’s Action Agenda and reflects the UAE’s commitment to making climate finance accessible, available, and affordable.

Targeting Energy Sustainable Living and Climate Technologies

ALTERRA introduces an innovative two-part structure: ALTERRA ACCELERATION, a US$25 billion component directing institutional capital towards impactful climate investments, and ALTERRA TRANSFORMATION, a US$5 billion component focusing on risk mitigation capital in the Global South. Aligned with COP28’s Action Agenda, it targets Energy Transition, Industrial Decarbonisation, Sustainable Living, and Climate Technologies.

Meeting Climate Finance Needs

By 2030, emerging markets and developing economies are projected to require US$2.4 trillion annually to address climate change. ALTERRA, structured around four key verticals – Energy Transition, Industrial Decarbonisation, Sustainable Living, and Climate Technologies, is positioned to play a crucial role in meeting these financial needs and driving sustainable global transformation.

UN Secretary-General’s Call for a Fossil-Free Future

The UN Secretary-General, Antonio Guterres has urged world leaders to envision a future without fossil fuels, emphasizing it as the only viable path to save the planet. This call aligns with COP28 President Sultan Al-Jaber’s emphasis on engaging with fossil fuel companies to reduce emissions.

Important Questions Related to Exams

Q. What is the focus of ALTÉRRA, the investment fund introduced by the United Arab Emirates at COP-28?

Answer: Climate investments to reshape emerging markets and developing economies.

Q. How much clean energy capacity is slated for development in India as part of the initial funding tranche?

Answer: Over 6.0 GW, including 1,200 MW of wind and solar projects.

Q. Which independent global investment manager established ALTÉRRA, and where is ALTÉRRA domiciled?

Answer: ALTERRA was established by Lunate, and it is domiciled in the Abu Dhabi Global Market (ADGM).

Q. What are the key verticals targeted by ALTÉRRA as part of COP28’s Action Agenda?

Answer: Energy Transition, Industrial Decarbonisation, Sustainable Living, and Climate Technologies.

Q. By 2030, how much annual funding is projected to be required by emerging markets and developing economies to address climate change?

Answer: $2.4 trillion.

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saurabh

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