Abu Dhabi Global Market (ADGM) is the home of the climate investment vehicle ALTÉRRA that was launched at COP28 UAE. The international financial center of the UAE capital revealed the landmark announcement recently. ALTÉRRA seeks to bridge the climate financing gap by raising and investing up to $250 billion by 2030.
The creation of ALTÉRRA was announced at the opening of the World Climate Action Summit on the second day of COP28. “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,” UAE President His Highness Sheikh Mohamed Bin Zayed Al Nahyan said in his address at COP28.
Established by Lunate, the global alternative investment management company, ALTÉRRA is set to be the world’s largest private climate investment vehicle. The UAE has committed $30 billion to the fund that is aimed at mobilizing transformative climate partnerships.
Meanwhile, 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.
ADGM role in climate finance
As the principal climate finance partner of COP28, ADGM has played a pivotal role in shaping the global dialogue on climate finance. It has also been instrumental in aligning international efforts towards climate action. In addition, ADGM is uniquely distinguished by its innovative progressive regulatory framework. It has also become a center for strategic partnerships to drive the global transition towards a sustainable economy.
“The launch of ALTÉRRA at ADGM is a testament to our efforts to lead in the space of climate finance,” said H.E Ahmed Jasim Al Zaabi, chairman, ADGM. “This aligns perfectly with ADGM’s mission to foster climate finance and supports the UAE’s vision to spearhead transformative global initiatives. We take pride in being the home for such a pioneering venture that will have a significant global impact.”
ALTÉRRA has an innovative two-part structure. One, ALTÉRRA ACCELERATION is a $25 billion component aimed at steering institutional capital towards impactful climate investments. Meanwhile, ALTÉRRA TRANSFORMATION is a $5 billion initiative focusing on risk mitigation capital. Moreover, this structure aligns with COP28’s agenda, targeting Energy Transition, Industrial Decarbonization, Sustainable Living, and Climate Technologies.
BlackRock, Brookfield and TPG are inaugural launch partners for ALTÉRRA. It has already committed $6.5 billion to climate-dedicated funds for global investments. Additionally, ALTÉRRA will work with global partners to mobilize capital from other institutional investors and global entities.
“ALTÉRRA is set to catalyze further investment, including significant projects in India and explorations in Africa and Latin America,” Al Zaabi ended.
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