Alterra Climate Fund to reach USD250 billion by 2030.

• Alterra received USD30 billion from the UAE making it the largest private investment fund.
• Alterra will focus on climate investments in emerging markets and developing economies.
• The Fund is to amass and distribute USD250 billion by 2030.

The UAE commits USD30 billion to Alterra, a climate investment fund launched at the United Nation’s climate change conference (COP28), making it the largest private investment fund for climate change.

Alterra’s primary objective is to concentrate on climate investments in emerging markets and developing economies, studies have revealed that there is an increasing funding shortfall in these regions.

The World Bank estimates that the escalating disparity to finance the climate transition is equivalent to the gap between the USD100 billion per annum committed by donor countries and the more than USD2.4 trillion required yearly by 2030.

Alterra’s plan involves two sections, the first one with USD25 billion pledged to invest to accelerate the transformation to a net-zero climate-resilient economy.

The second part, with funding of USD5 billion, is designed to mitigate risk to further incentivize investments into the global south.

Quotes:

Majid Al Suwaidi, CEO of Alterra and Director-General of cop28 in a panel discussion said, “The fund aims to amass and distribute USD250 billion globally by 2030”.

Al Suwaidi added: “The vision for Alterra was borne out of the COP28 Presidency’s Action Agenda focus on how we can make climate finance more available, accessible and affordable for all, and remove barriers impeding investment – especially into the Global South. Alterra is a key element in the COP28 Presidential Action Plan to help drive climate investment to the solutions and markets where it is most needed.”

During the panel session, the following individuals participated: Dr. Mahmoud Mohieldin, Executive Director at the International Monetary Fund; Rajiv Dhar, Board Member of the National Infrastructure Investment Fund and Head of US India Green Fund; Arvind Ramamurthy, Chief Market Development Officer at Abu Dhabi Global Market (ADGM); and Samir Suleymanov, Director of Finance at COP28.