Fund Solutions

“Transformational” UAE Climate Fund to Attract Private Capital

At COP28, the United Arab Emirates (UAE) has unveiled its US$30 billion investment vehicle, called Altérra, which aims to support the climate transition, with an emphasis on the Global South. It will have two parts: Altérra Acceleration will utilise US$25 billion to focus on climate investments at scale, whereas US$5 billion will be earmarked for Altérra Transformation, which will focus on risk mitigation to help drive private investment flows into the Global South. The fund will be investing in six gigawatts (GW) of new clean energy in India, including 1.2 GW of onshore wind and solar, which will begin producing power by 2025. BlackRock, Brookfield and TPG have been announced as inaugural launch partners. BlackRock has said that both Altérra units will invest US$2 billion into its private debt and infrastructure equity strategies for climate transition. COP28 President Sultan Al Jaber said: “Altérra provides a transformational solution for attracting private capital. Its scale and structure will create a multiplier effect in climate-focused investment, making it a vehicle like no other. Its launch reflects the COP Presidency’s Action Agenda and the UAE’s efforts to make climate finance available, accessible and affordable.” It is intended that the new fund will mobilise US$250 billion globally by 2030. 

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