UAE launches USD-30bn climate investment vehicle at COP28

The United Arab Emirates (UAE), the host of the ongoing COP28 summit, today announced a USD-30-billion (EUR 27.4bn) climate investment vehicle, called ALTERRA.

The fund, described as the world’s largest private investment vehicle for climate change action, will seek to mobilise USD 250 billion of institutional and private capital globally by 2030.

ALTERRA will have a two-part structure -- a USD-25 billion component, ALTERRA ACCELERATION, will act as an anchor investor and co-investor in climate strategies, allocating capital both directly and through fund partnerships. With a USD-5-billion commitment, ALTERRA TRANSFORMATION will provide risk mitigation capital to encourage investment flows into the Global South, according to a press announcement.

Global investment companies BlackRock, Brookfield and TPG are the inaugural launch partners for ALTERRA. In collaboration with them, the UAE vehicle has committed USD 6.5 billion to climate-focused funds for global investments, including the Global South. From this, an investment has been earmarked for the development of over 6 GW of clean energy capacity in India, including the construction of 1.2 GW of wind and solar projects set to start generation by 2025.

Additional opportunities are being explored with the launch partners, such as an African wind and solar development platform with a pipeline of over 5 GW and a rural electrification platform in Latin America.

ALTERRA has been set up by Abu Dhabi-based alternative investment management company Lunate. Its board will be chaired by COP28 president Sultan Al Jaber.

(USD 1 = EUR 0.915)

Choose your newsletter by Renewables Now. Join for free!