ALTÉRRA Fund: UAE’s US$30 Billion Climate Investment Initiative

Fund Overview

• The United Arab Emirates, serving as the host of COP-28, has pledged a substantial US$30 billion towards the establishment of the ALTÉRRA Fund. This initiative is set to revolutionize climate investments by aiming to mobilize a monumental US$250 billion globally by 2030. It aspires to hold the mantle as the most extensive fund exclusively dedicated to climate-focused investments.

Objectives

• ALTÉRRA Fund’s primary objective is to drive the transformation of emerging markets and developing economies through strategic climate investments. The overarching goal is to address the pressing need for sustainable development and combat climate change, especially in regions requiring urgent attention and financial backing.

Focus Areas

• The fund is strategically structured to target four pivotal areas: Energy Transition, Industrial Decarbonisation, Sustainable Living, and Climate Technologies. This focused approach aims to spearhead impactful projects that promote clean energy adoption and foster sustainability across diverse sectors.

Impactful Initiatives

• One of the initial and significant endeavors of ALTÉRRA is the allocation of funds for the development of over 6.0 GW of new clean energy capacity in India. This includes ambitious plans for 1,200 MW of wind and solar projects, anticipated to be fully operational by 2025.

Financial Imperatives

• Recognizing the magnitude of the challenge, emerging markets and developing economies are estimated to require a staggering US$2.4 trillion annually by 2030 to effectively combat climate change. ALTÉRRA Fund aims to bridge this gap by channeling investments into critical projects worldwide.

Leadership and Governance

• Spearheaded by COP-28 President Sultan Ahmed Al Jaber, ALTÉRRA Fund benefits from astute leadership. Lunate, an esteemed global investment manager, has been instrumental in establishing and managing this fund, which is domiciled in the Abu Dhabi Global Market.

Mission and Influence

• ALTÉRRA Fund is positioned as a groundbreaking solution to attract private capital into climate-focused investments. Its scale and structure are anticipated to create a substantial ripple effect, catalyzing a paradigm shift in climate investment strategies globally.

Reflecting COP Presidency’s Vision

• The launch of ALTÉRRA Fund mirrors the UAE’s COP Presidency Action Agenda, emphasizing accessibility, availability, and affordability of climate finance. It underscores the concerted efforts to address the pressing climate crisis and promote sustainable economic growth on a global scale.