Today, as world leaders gathered for COP28, the UAE
announced a US$30 billion commitment to the newly launched catalytic climate vehicle,
ALTÉRRA, that will drive forward international efforts to create a fairer climate finance
system, with an emphasis on improving access to funding for the Global South.
With this US$30 billion commitment, ALTÉRRA becomes the world’s largest private
investment vehicle for climate change action and will aim to mobilize US$250 billion globally
by 2030. It 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.
Finance for climate action is not currently available, accessible or affordable enough where
it is needed. By 2030, emerging markets and developing economies will require US$2.4
trillion every year to address climate change. That is why COP28 made fixing climate
finance a key pillar of its Action Agenda and has worked to deliver ambitious solutions,
including mobilising private markets at scale.
The launch of the vehicle was described by COP28 President Dr. Sultan Al Jaber as a
“defining moment” in the creation of a new era of international climate finance.
Dr. Al Jaber, who will chair 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.”
Ambassador Majid Al Suwaidi, COP28 Director-General, will serve as ALTÉRRA’s Chief
Executive Officer. ALTÉRRA will have a team of specialist climate investment professionals
who bring a strong track record of investing in emerging and developing
markets. ALTÉRRA has been established by Lunate, an independent global investment
manager, and is domiciled in the Abu Dhabi Global Market.
ALTÉRRA is one of a range of finance-led initiatives launched during COP28 to accelerate
the global transition to a low-carbon economy and build climate resilience.
Ambassador Al Suwaidi, 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.”
ALTÉRRA will have an innovative two-part structure to spur new ideas, incentivize policy
and regulatory frameworks, and identify solutions to rapidly deploy capital across the entire
value chain of the new climate economy. It has a dedicated investment focus on supporting
four key priorities that underpin COP28’s Action Agenda, namely: Energy Transition,
Industrial Decarbonization, Sustainable Living and Climate Technologies.
ALTÉRRA ACCELERATION, a US$25 billion component of ALTÉRRA, will steer
institutional capital towards climate investments at scale that have the greatest potential to
accelerate the transition to a net-zero and climate resilient economy. ALTÉRRA
ACCELERATION will serve as an anchor investor and co-investor in climate strategies,
allocating capital both directly and through fund partnerships to maximize its global impact.
ALTÉRRA TRANSFORMATION, a US$5 billion component of ALTÉRRA, will provide risk
mitigation capital to incentivize investment flows into the Global South, directly addressing
the challenges that currently limit climate investment and access to affordable capital. Inline with COP28’s message of full inclusivity, ALTÉRRA TRANSFORMATION will also
create opportunities to leverage concessional finance to further attract climate investment
to Least Developed Countries (LDCs) and Small Island Developing States (SIDS).
The vehicle will add to the UAE’s accomplished track record of managing large investment
platforms and successfully developing and operating renewable energy projects around
the world, leading change as a trusted facilitator at the global crossroads between North,
South, East and West.
ALTÉRRA, in collaboration with BlackRock, Brookfield and TPG as inaugural launch
partners, has committed US$6.5 billion to climate-dedicated funds for global investments,
including the Global South. The partners are expected to mobilize capital from other
institutional investors, and global entities. ALTÉRRA will continue to expand its partnerships
as it creates investment opportunities, develops innovative solutions, and deploys capital
at scale.
ALTÉRRA and its partners are committed to the rapid deployment of capital in high-impact
projects, particularly in emerging markets. From the vehicle’s initial commitment, immediate
capital investment has been earmarked for the development of over 6.0 GW of new clean
energy capacity in India. This includes the construction of 1,200 MW of wind and solar
projects that will begin producing clean power by 2025.
The vehicle and its launch partners are actively exploring a range of additional investment
opportunities, including an African development platform with a pipeline of 5GW+ of
onshore wind and solar PV energy projects and a rural electrification platform in Latin
America that will provide electricity to over 1 million people in remote rural areas and with
growth potential.
ALTÉRRA will put in place a Climate Impact Framework to ensure it is driving positive
climate transformation towards collective climate objectives, aligning with international best
practices to safeguard the vehicle’s climate mandate, and ensuring accountability and
transparency.
Notes to Editors COP28 UAE:
- COP28 UAE will take place at Expo City Dubai from November 30-December 12,
2023. The Conference is expected to convene over 70,000 participants, including
heads of state, government officials, international industry leaders, private sector
representatives, academics, experts, youth, and non-state actors.
- As mandated by the Paris Climate Agreement, COP28 UAE will deliver the first ever
Global Stocktake - a comprehensive evaluation of progress against climate goals.
- The UAE will lead a process for all parties to agree upon a clear roadmap to
accelerate progress through a pragmatic global energy transition and a “leave no
one behind” approach to inclusive climate action.
About Lunate
Lunate is a Abu Dhabi-based independent global alternative investment management
company with more than 150 employees. Lunate invests across the entire private market
spectrum including buyouts, growth equity, early and late-stage venture capital, private
credit, real assets, and public equities and public credit. Lunate aims to be one of the
world’s leading private markets solutions providers through SMA’s and multi-asset class
funds, seeking to generate best-in-class risk-adjusted returns for its clients