The United Arab Emirates, host of COP-28, announced a US$30 billion commitment to an investment fund called ALTÉRRA. The privately managed fund aims to mobilise US$250 billion globally by 2030 and be the largest of its kind, geared towards climate investments and transform emerging markets and developing economies.
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From the initial tranche, an unspecified amount has been earmarked for the development of over 6.0 GW (1 GW is 1,000 MW) of new clean energy capacity in India. This includes establishing 1,200 MW of wind and solar projects that will begin producing clean power by 2025.
COP-28 President, Sultan Ahmed Al Jaber will chair the fund and Director-General, Majid Al Suwaidi, will serve as its Chief Executive Officer. ALTÉRRA has been established by Lunate, an independent global investment manager, and is domiciled in the Abu Dhabi Global Market.
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As COP-28 President, Mr. Al Jaber, while facing criticism for his dual role as the CEO of Abu Dhabi National Oil Company while holding the reigns of the COP Presidency, has said that he is committed to involving a wide range of entities – governments, private sector, renewable energy companies, oil and gas firms – to be able to deliver a successful outcome at the COP and push the world closer to keeping temperatures from beyond 1.5 degrees Celsius.
“ALTÉRRA provides a transformational solution for attracting private capital. Its scale and structure will create a multiplier effect in climate focused investment, making it a vehicle like no other. Its launch reflects the COP Presidency’s Action Agenda and the UAE’s efforts to make climate finance available, accessible and affordable,” Mr. Al Jaber said.
By 2030, emerging markets and developing economies will require reportedly US$2.4 trillion every year to address climate change. ALTÉRRA will have four key verticals namely: Energy Transition, Industrial Decarbonisation, Sustainable Living and Climate Technologies.