Credit By: Gulf News
UAE President Sheikh Mohammed Bin Zayed made a historic announcement at the UN’s COP28 conference in Dubai: a $30 billion climate-financing fund. This fund is designated to assist ALTÉRRA, the world’s largest private investment vehicle for climate change action, which was founded as a catalytic climate vehicle. With a bold objective, ALTÉRRA hopes to raise $250 billion globally by 2030, concentrating on encouraging private markets to make climate investments, especially in developing and rising nations.
ALTÉRRA: Equitable Climate Finance Catalyst
Leading international initiatives to create a fairer climate finance system that is more accessible to the Global South is ALTÉRRA’s primary goal. Because of the perceived higher risks, traditional investments have lagged in these locations. This project aims to close the crucial funding gap for climate change, predicted to cost $2.4 trillion a year by 2030 in rising markets and developing nations.
A Defining Moment for Climate Finance
“I am happy to announce the establishment of a $30 billion fund for global climate solutions,” said President Sheikh Mohammed Bin Zayed. This fund aims to close the financing gap for climate change. The critical need to solve funding gaps in climate efforts has been highlighted by COP28, which has designated mending climate finance as a central pillar of its action agenda.
ALTÉRRA’s Transformative Solution
COP28 President Dr. Sultan al-Jaber hailed the launch of ALTÉRRA as a “defining moment” that marked the beginning of a new era in international climate finance. Dr. al-Jaber, who will be the organization’s chair, emphasized that ALTÉRRA offers a game-changing way to draw in private investment and boost climate-focused projects. The launch aligns with the Action Agenda of the COP Presidency and the UAE’s dedication to ensuring that climate funding is readily available, affordable, and accessible.
Accelerating the Shift to a Low-Carbon Economy
At COP28, several finance-led initiatives, such as ALTÉRRA, were unveiled to strengthen climate resilience and quicken the transition of the world economy to a low-carbon one. As COP28 Director-General Ambassador Majid Al Suwaidi takes on the post of Chief Executive Officer of ALTÉRRA, highlighting the organization’s vital role in establishing a worldwide green finance ecosystem and promoting the development of a new climate economy. With its ability to create a dynamic climate investment landscape, ALTÉRRA has the potential to stimulate investment in the Global South.
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