UAE’s ALTÉRRA Fund: A US$30 Billion Leap Toward Global Climate Finance Equity

In a groundbreaking move to address the global disparity in climate finance, the United Arab Emirates (UAE) has unveiled its ambitious ALTÉRRA fund with a committed US$30 billion. This strategic financial initiative is geared towards propelling international efforts that advocate for a more equitable climate finance system, specifically targeting the underfunded regions often referred to as the Global South.

This substantial commitment is designed to stimulate action to bridge the gaping climate finance divide. ALTÉRRA, the instrument behind this initiative, has been launched with the leadership of Majid Al Suwaidi as CEO, and with Dr Sultan Al Jaber, President of COP28, at the helm of the company’s Board of Directors, ensuring a synergy of purpose and expertise at the core of the operation.

ALTÉRRA’s mission is bold. It stands as the planet's largest private investment vehicle singularly focused on climate action. It endeavors not only to apply its own $30 billion but also to mobilize an astounding $250 billion globally by the year 2030. This proactive approach towards financing underpins a pressing need; the fact that emerging markets and developing economies are estimated to require an annual $2.4 trillion by 2030 to effectively combat climate change.

The UAE has already made waves with a $278 million endowment to the loss and damage fund aimed principally at helping developing nations cope with the adverse effects of climate change, of which $100 million is expressly committed by the UAE itself. With ALTÉRRA in play, the UAE is enhancing its strategic approach to climate finance, fostering greater accessibility, availability, and affordability where it is critically needed.

The delivery of such finance to emerging and developing markets at scale is not just a promise but a “defining moment” in ushering a new epoch for global climate finance, as per Dr Sultan Al Jaber. ALTÉRRA's inception signals an era of transformation and hopes to act as a catalyst for private capital investments in climate action, potentially multiplying the effect of every dollar invested.

ALTÉRRA aims to pioneer the growth of a robust green finance ecosystem, with a keen investment team specializing in climate investments across emerging and developing markets, headquartered at Abu Dhabi Global Market and established by Lunate, a global investment firm. The investment vehicle will primarily concentrate on supporting four key areas: energy transition, industrial decarbonization, sustainable living, and pioneering climate technologies.

Marking its assertive debut, ALTÉRRA has already earmarked capital for the development of over 6.0 GW of new clean energy capacity in India, inclusive of 1200 MW of wind and solar projects slated to begin operation by 2025.

Striving to build a vibrant investment landscape, ALTÉRRA positions itself as a critical element in the broader goal of stimulating substantive investments into climate action in the Global South, which in turn can catalyze the expansion of a new climate economy globally.

The UAE's strategy provides a blueprint for how nations can leverage financial mechanisms to foster equitable solutions to global climate challenges. ALTÉRRA sets a standard for international climate finance governance, showcasing collaborative innovation that aligns economic growth with the exigent environmental imperatives of our times.