- As the host of COP-28, the UAE has pledged $30 billion to establish ALTÉRRA, a climate investment fund.
ALTÉRRA Fund
- Fund Goal: ALTÉRRA wants to raise $250 billion globally by 2030, becoming the largest fund dedicated to climate initiatives.
- The fund’s goal is to use climate investments to transform emerging markets and developing economies.
- India’s Clean Energy Strategy: The fund’s initial allocation is for the development of approximately 6.0 GW of new clean energy capacity in India, including 1,200 MW of wind and solar projects that are projected to be operational by 2025.
- Financial Needs: It is estimated that emerging markets and developing countries would require US$2.4 trillion per year by 2030 to combat climate change.
- ALTÉRRA will concentrate its efforts in four areas: energy transition, industrial decarbonisation, sustainable living, and climate technologies.
Leadership and Management
- Chair: COP-28 The ALTÉRRA fund will be chaired by President Sultan Ahmed Al Jaber.
- ALTÉRRA has been founded by Lunate, an independent worldwide investment manager.
- The fund’s domicile is the Abu Dhabi Global Market.
Impact and Mission
- ALTÉRRA is positioned as a transformational tool for bringing private financing into climate-focused enterprises.
- The fund’s size and structure are likely to have a substantial influence on climate investment.
- Reflection on the Action Agenda of the COP Presidency: The introduction of ALTÉRRA is in line with the UAE’s COP Presidency Action Agenda and initiatives to increase the availability, accessibility, and affordability of climate finance.
Source: https://www.thehindu.com/news/international/uae-announces-30-billion-fund-to-catalyse-private-sector-climate-investments/article67595624.ece#:~:text=The%20United%20Arab%20Emirates%2C%20host,emerging%20markets%20and%20developing%20economies.