Dubbed Alterra, the fund will allocate US$25 billion towards climate strategies and US$5 billion specifically to incentivise investment flows into the Global South.
‘Adopt a different mindset’: Cop28 chief wants fossil fuels part of climate deal
‘Adopt a different mindset’: Cop28 chief wants fossil fuels part of climate deal
In collaboration with global asset managers BlackRock, Brookfield and TPG, Alterra has committed US$6.5 billion to climate-dedicated funds for global investments, including the Global South, the statement from the Cop28 presidency said.
The vehicle “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”, it added.
Alterra was established by Lunate, a newly set up Abu Dhabi-based alternative investment manager with over US$50 billion in assets.
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Cop28 prepares temperature check on climate at Dubai meeting
Cop28 prepares temperature check on climate at Dubai meeting
Lunate is owned by its senior management and Chimera Investment, which is part of a business empire overseen by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and the president’s brother.
The UAE has drawn criticism for its plans to expand oil and gas production as the world struggles to rein in the climate-damaging carbon emissions these fossil fuels produce.
Against that backdrop, the UAE has been keen to encourage finance and business more broadly to commit more money to the climate fight and was expected to open its own chequebook throughout the two-week UN climate summit.