Dubai, 1 December 2023 (TDI): Sheikh Mohamed bin Zayed, UAE’s President, pledged $30 billion for climate financing at the UN’s COP28 summit in Dubai. ALTÉRRA, is a climate vehicle aimed at improving global climate finance equity, with a focus on increasing funding accessibility for Global South countries.
He stated, “When we committed to hosting COP28, we committed to bringing the world together.
However, ALTÉRRA has emerged as the foremost private investment entity dedicated to climate change action worldwide, after a $30 billion fund. The objective is to galvanize a staggering $250 billion on a global scale by the year 2030.
Moreover, the primary focus of ALTÉRRA lies in directing private markets towards climate-related investments, particularly in emerging markets and developing economies.
Developing regions have historically faced a dearth of traditional investment, ALTÉRRA seeks to bridge this gap by spearheading transformative initiatives in these areas.
“I am ecstatic to announce the establishment of a $30 billion fund for global climate solutions,” Sheikh Mohamed said at COP28 on Friday. “This fund is designed to bridge the climate finance gap.”
Finance for climate action is not currently available, accessible, or affordable enough where it is needed. By 2030, emerging markets and developing economies will require $2.4 trillion yearly to address climate change.
COP28 has made fixing climate finance a key pillar of its action agenda. Albeit, COP28 President Dr. Sultan al-Jaber described the launch of the vehicle as a “defining moment” in the creation of a new era of international climate finance.
Al-Jaber, who will chair the ALTÉRRA’s Board, added: “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.
Moreover, its launch reflects the COP Presidency’s Action Agenda and the UAE’s efforts to make climate finance available, accessible and affordable.”
ALTÉRRA, launched during COP28, aims to expedite the shift towards a low-carbon economy and enhance climate resilience. Director-General of COP28 sees it as crucial in establishing a global green finance ecosystem and stimulating investment in the Global South.