On Friday, United Arab Emirates President Sheikh Mohammed Bin Zayed pledged to establish a $30 billion climate financing fund during the UN’s COP28 summit in Dubai, where leaders from nearly 200 countries convened.
The fund aims to support ALTÉRRA, a recently established climate vehicle, in leading global initiatives for a fairer climate finance framework, specifically focusing on improving financing accessibility for the Global South, according to Al Arabiya.
With this $30 billion commitment, ALTÉRRA has become the world’s largest private investment vehicle for climate change action. Additionally, the organization aims to raise $250 billion globally by 2030.
The initiative aims to steer private markets toward climate investments, with a focus on underdeveloped economies and emerging markets, where traditional investment has been hindered by perceived risks.
During COP28, Sheikh Mohammed announced the establishment of the $30 billion fund, emphasizing its role in bridging the climate finance gap, a critical issue as emerging markets and developing economies are projected to need $2.4 trillion annually by 2030. COP28 has prioritized addressing climate finance as a key pillar of its action agenda.
COP28 President Dr. Sultan al-Jaber described the launch of ALTÉRRA as a “defining moment” in creating a new era of international climate finance. He added that ALTÉRRA, chaired by Al-Jaber, provides a transformative solution for attracting private capital, with its scale and structure creating a multiplier effect in climate-focused investment. Al-Jaber highlighted the initiative’s alignment with the COP Presidency’s Action Agenda and the UAE’s commitment to making climate finance more available, accessible, and affordable.
Several finance-focused programs, including ALTÉRRA, were introduced at COP28 to accelerate the world’s transition to a low-carbon economy and enhance climate resilience.
Ambassador Majid Al Suwaidi, COP28 Director-General, will serve as ALTÉRRA’s Chief Executive Officer, emphasizing its critical role in building a global green finance ecosystem that stimulates and empowers the growth of a new climate economy, particularly in the Global South.
