UAE launches $30bn climate fund

The UAE has launched what it claims is the largest private investment fund focused on climate change.

The fund, named Alterra, has been launched by Abu Dhabi-based fund manager Lunate in partnership with BlackRock, Brookfield and TPG.

Lunate was founded in September and is partly owned by Chimera Investment, which is, in turn, owned by Sheikh Tahnoun, brother of UAE president Sheikh Mohammed bin Zayed.

There is a two-part structure to the $30 billion fund – the first part (Alterra Acceleration) will comprise $25 billion and will act as an anchor investor in climate strategies; the second part (Alterra Transformation) will commit $5 billion to “incentivise investment flows into the Global South”.

The fund launch coincides with the UAE’s hosting of the Cop28 conference, during which Sultan Al Jaber, the president of COP28, will also serve as the chair of the fund’s board.

He has attracted criticism, given he is also the chief executive of the UAE’s state oil company, Adnoc.

This criticism increased during the COP28 event when Al Jaber reportedly stated there was “no science” to show that phasing out fossil fuels would achieve the world’s climate goals and reduce global warming to 1.5 degrees.

©2023 funds global mena

Related Articles