UAE commits US$30bln in catalytic capital

UAE commits US$30bln in catalytic capital

Dubai: Today, as world leaders gathered for COP28, the UAE announced a US$30 billion commitment to the newly launched catalytic climate vehicle, ALTÉRRA, that will drive forward international efforts to create a fairer climate finance system, with an emphasis on improving access to funding for the Global South.

With this US$30 billion commitment, ALTÉRRA becomes the world’s largest private investment vehicle for climate change action and will aim to mobilize US$250 billion globally by 2030. It aims to steer private markets towards climate investments and focus on transforming emerging markets and developing economies, where traditional investment has been lacking due to the higher perceived risks across those geographies.

Finance for climate action is not currently available, accessible or affordable enough where it is needed. By 2030, emerging markets and developing economies will require US$2.4 trillion every year to address climate change. That is why COP28 made fixing climate finance a key pillar of its Action Agenda and has worked to deliver ambitious solutions, including mobilising private markets at scale.

The launch of the vehicle was described by COP28 President Dr. Sultan Al Jaber as a “defining moment” in the creation of a new era of international climate finance.

Dr. Al