The United Arab Emirates (UAE), current year COP28 country host, announced a 30 billion dollars 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.

ALTÉRRA will have an innovative two-part structure (ALTÉRRA Acceleration and ALTÉRRA Transformation) 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.

• ALTÉRRA Acceleration (25 billion dollars) 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 Transformation (5 billion dollars) 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.

Investment focus will be on supporting the four key priorities that underpin COP28’s Action Agenda: i) Energy Transition, ii) Industrial Decarbonization, iii) Sustainable Living and iv) Climate Technologies.

ALTÉRRA therefore becomes the world’s largest private investment vehicle for climate change action and will aim to mobilize 250 billion dollars globally by 2030. BlackRock, Brookfield and TPG will be the inaugural launch partners, with a 6.5 billion dollars commitment to climate-dedicated funds for global investments.