UAE president announces $30bn fund to bridge climate finance gap. In a groundbreaking announcement during the UN’s COP28 summit in Dubai, President Sheikh Mohammed Bin Zayed of the United Arab Emirates (UAE) committed to establishing a substantial $30 billion fund dedicated to climate financing.
This financial pledge is poised to bolster ALTÉRRA, a newly formed catalytic climate vehicle, which will take the lead in spearheading global initiatives aimed at fostering a more equitable climate finance framework, with a particular emphasis on enhancing accessibility for the Global South.
With this $30 billion infusion, ALTÉRRA now stands as the largest private investment vehicle globally, dedicated to catalyzing action against climate change. The organization’s ambitions extend to raising a staggering $250 billion worldwide by the year 2030.
Central to ALTÉRRA’s mission is the incentivization of private markets to prioritize climate investments, especially in regions characterized by underdevelopment and emerging markets where conventional investments have been hindered by perceived heightened risks.
Addressing the distinguished audience at COP28, President Sheikh Mohammed expressed his satisfaction with the announcement, stating, “I am pleased to announce the establishment of a $30 billion fund for global climate solutions. This fund is designed to bridge the climate finance gap.”
The pressing issue of insufficient climate finance comes into sharp focus, with projections indicating that emerging markets and developing economies will require an estimated $2.4 trillion annually by the year 2030.
COP28 has made tackling the challenge of climate finance a pivotal pillar of its action agenda. President of COP28, Dr. Sultan al-Jaber, described the unveiling of ALTÉRRA as a “defining moment” in ushering in a new era of international climate finance.
Al-Jaber, who assumes the role of chair on ALTÉRRA’s Board, underscored the transformative potential of ALTÉRRA in attracting private capital, foreseeing a multiplier effect in climate-focused investments.
Ambassador Majid Al Suwaidi, Director-General of COP28, is set to assume the role of Chief Executive Officer for ALTÉRRA. He emphasized the critical role that ALTÉRRA plays in the UAE’s broader strategy to establish a global green finance ecosystem, driving the growth of a new climate economy.
The organization aims to cultivate a robust climate investment landscape, catalyzing increased investments in the Global South.
As UAE president announces $30bn fund to bridge climate finance gap, COP28 introduced various finance-focused programs, including ALTÉRRA, with the overarching goal of accelerating the global transition to a low-carbon economy and bolstering climate resilience.
