About ALTERRA fund: What is ALTERRA fund?

The UAE announced the launch of Alterra, a groundbreaking US $30 billion investment fund for transformative climate partnerships at COP28, providing a major impetus to finance the energy transition on the second day of the UN climate summit.

• The launch of the investment vehicle is a “defining moment” in the history of global climate finance, said COP28 President Dr Sultan Al Jaber – who will also be the Board Chairman of Alterra.

When was the fund announced?

• The creation of Alterra was announced at the opening of the World Climate Action Summit on the second day of COP28 on Friday. “I am pleased to announce the establishment of a $30 billion fund for global climate solutions. This fund is designed to bridge climate finance gap,” President His Highness Sheikh Mohamed Bin Zayed Al Nahyan said in his address to the Summit.
• “When we committed to hosting COP28, we pledged to bring the world together to unite, build and to deliver,” he added.

What is the concept of Alterra?

• As the largest of its kind investment vehicle, Alterra seeks to bridge the climate financing gap by raising and investing a corpus of up to $250 billion of institutional and private capital by 2030.
• In collaboration with BlackRock, Brookfield and TPG as the inaugural launch partners, Alterra has already committed $6.5 billion to climate-dedicated funds for global investments, including in the Global South, according to a COP28 statement. Alterra will work with an increasing number of global partners to mobilise capital from other institutional investors and global entities.

What will be the main focus of Alterra?

Alterra’s main goal will be to focus on climate investments in emerging markets and developing economies, where studies have shown an ever increasing funding deficit. The World Bank estimates that the growing gap to fund the climate transition equates to the difference between the $100 billion annually committed by donor countries and the more than $2.4 trillion needed per year by 2030.