Sheikh Mohammed Bin Zayed Al Nahyan, President of the United Arab Emirates, which is hosting the COP28 climate summit, announced the establishment of a $30 billion fund for global climate solutions on Friday.
The fund, dubbed ALTÉRRA, will allocate $25 billion for climate strategies and $5 billion to attract $250 billion in investments by the end of the decade, according to the COP28 chairman’s statement.
In a statement, ALTÉRRA, in collaboration with global asset managers BlackRock, Brookfield and TPG, announced that it has committed $6.5 billion in climate change funds for global investments, including the Global South.
The programme “aims to steer private markets towards climate investment and focus on transforming emerging markets and developing economies, where traditional investment has been lacking due to the higher perceived risks across those geographies.”
ALTÉRRA was founded by Lunate, a newly established alternative investment company headquartered in Abu Dhabi with more than $50 billion in assets.
Lunate is owned by its senior management and Chimera Investment LLC, a company overseen by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and the president’s brother.
The UAE has been criticised for its plans to expand oil and gas production as the world struggles to curb the climate-damaging carbon emissions these fossil fuels produce. The emirates have sought to encourage finance and business to allocate more money to combat climate change.
