Friday, December 01, 2023
DUBAI: United Arab Emirates President Sheikh Mohammed Bin Zayed on Friday pledged to establish a $30 billion fund for climate financing as world leaders from almost 200 countries gathered in Dubai for the UN's COP28 summit.
The fund is intended to support the recently established catalytic climate vehicle, ALTÉRRA, which will spearhead global initiatives to establish a more equitable climate finance framework focusing on enhancing financing accessibility for the Global South, Al Arabiya reported.
With this $30 billion pledge, ALTÉRRA has grown to be the greatest private investment vehicle for climate change action in the world.
Additionally, by 2030, the organisation hopes to raise $250 billion worldwide.
It seeks to nudge private markets in the direction of climate investments while concentrating on underdeveloped economies and emerging markets, where traditional investment has lagged behind because of the greater perceived risks in those regions.
“I am pleased to announce the establishment of a $30 billion fund for global climate solutions,” Sheikh Mohamed said at COP28 on Friday. “This fund is designed to bridge the climate finance gap.”
The current lack of climate finance is a significant issue, with emerging markets and developing economies expected to require $2.4 trillion annually by 2030.
COP28 has made fixing climate finance a key pillar of its action agenda.
COP28 President Dr Sultan al-Jaber described the launch of the vehicle as a “defining moment” in the creation of a new era of international climate finance.
Al-Jaber, who will chair the ALTÉRRA’s Board, added: “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.”
Several finance-led programmes, including ALTÉRRA, were introduced at COP28 aiming to hasten the world's shift to a low-carbon economy and enhancing climate resilience.
Ambassador Majid Al Suwaidi, COP28 Director-General, will serve as ALTÉRRA’s Chief Executive Officer.
He said: “ALTÉRRA is a critical element in the UAE’s efforts to create a global green finance ecosystem that stimulates and empowers the growth of a new climate economy. It will build a vibrant climate investment landscape which further catalyzes investment into the Global South.”