The UAE has announced investments of $30 billion to launch a financing mechanism aimed at forming a kind of base for creating a more transparent system for financing projects to combat climate change.
In this case, the countries of the Global South will have access to funds for the specified purposes.
The new Alterra mechanism is the largest private commitment in the sphere of climate change. The investment funds will be used to assist emerging markets in financing the fight against climate problems. By 2030, $250 billion will be mobilized. This initiative will accelerate the global transition to the so-called net zero. The new mechanism will also provide a more intensive decarbonization rate.
Alterra will be led by Ambassador Majid Al-Suwaidi, CEO of COP28, and a team of climate specialists. The founder of the project is the UAE investment management company Lunate.
Alterra is aimed at stimulating regulation and shaping strategies for the use of capital in the global climate economy.
In this case, the investment focus is oriented on the main objectives of the COP28 action program, including climate technology, decarbonization of industry, sustainable lifestyle, and transition to a new generation of energy.
The president of COP28, Dr. Sultan Al Jaber, who will become the head of the board of Alterra, said that this initiative offers a transformational solution for raising private capital. He stated that the scale and structure of the project will create a multiplier effect in investments focused on climate change.
As we have reported earlier, ResponsAbility Launches Climate Investment Strategy for Asia.
