The vehicle, ALTÉRRA, will be the largest private investment commitment for climate change. The investment will aim to aid emerging markets with climate change funding by mobilising $250 billion by 2030. The initiative plans to accelerate the global shift to net zero and decarbonise at a more efficient pace.

ALTÉRRA will be led by Ambassador Majid Al-Suwaidi, COP28 Director-General, and a group of climate professionals. The project has been established by UAE investment managing company Lunate.

The two-part configuration of ALTÉRRA is set to incentivise regulation and form strategies to use capital across the global climate economy. The investment focus concentrates on the key objectives of the COP28 Action Agenda: energy transition, industrial decarbonisation, sustainable living, and climate technologies.

COP28 President Dr. Sultan Al Jaber, who will chair ALTÉRRA’s board, stated: “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.”

ALTÉRRA ACCELERATION and ALTÉRRA TRANSFORMATION are two components of the overarching ALTÉRRA initiative, the former will focus on climate resilience and allocating funds in decarbonisation and climate strategies, and the latter will aim to address the lack of capital in the Global South and create new opportunities to attract investments. Ambassador Al Suwaidi, commented: “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.”