The United Arab Emirates has unveiled a substantial $30 billion initiative aimed at establishing a climate-focused investment vehicle at COP28. This initiative, named ALTÉRRA, seeks to lay the groundwork for a more transparent climate finance system and provide crucial funding to support the Global South.
ALTÉRRA is poised to be the largest private sector commitment towards combating climate change. Its objective is to mobilize $250 billion in climate funding for emerging markets by the year 2030, all while expediting the transition to net zero emissions and facilitating efficient decarbonization.
The initiative will be overseen by Ambassador Majid Al-Suwaidi, the Director-General of COP28, and a team of experienced climate professionals. Managing this ambitious project is Lunate, an investment management firm based in the UAE.
ALTÉRRA’s two-pronged approach is designed to encourage regulatory frameworks and develop strategies that utilize capital across the global climate economy. The investment will focus on the key targets set out in the COP28 Action Agenda, which include energy transition, industrial decarbonization, sustainable living, and advancements in climate technologies.
Dr. Sultan Al Jaber, President of COP28 and chair of ALTÉRRA’s board, emphasized that “ALTÉRRA offers a transformative solution for attracting private capital. Its unique structure and scale will multiply investments focused on climate action, setting it apart from other initiatives. The launch embodies the COP Presidency’s Action Agenda and the UAE’s commitment to making climate finance more accessible and affordable.”
The ALTÉRRA initiative consists of two distinct components: ALTÉRRA ACCELERATION and ALTÉRRA TRANSFORMATION. The former aims to enhance climate resilience by directing investments into decarbonization efforts and climate strategies, while the latter is focused on addressing the funding gap in the Global South and fostering new investment opportunities. Ambassador Al-Suwaidi remarked, “ALTÉRRA is vital to the UAE’s mission of creating a global green finance ecosystem that fosters and strengthens the development of a new climate economy. It will cultivate a dynamic climate investment landscape, further encouraging investments in the Global South.”