UAE announces $30-billion fund for global climate solutions at COP28

Sheikh Mohamed said the launch is aimed at bridging the climate financing gap and facilitating access to it at an affordable cost

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Published: Fri 1 Dec 2023, 1:22 PM

Last updated: Fri 1 Dec 2023, 11:31 PM

The UAE has announced a $30-billion fund for global climate solutions on the second day of COP28.

The UAE President, His Highness Sheikh Mohamed bin Zayed Al Nahyan took to X to make the announcement.

"When we committed to hosting COP28, we committed to bringing the world together to provide practical solutions to the challenge of climate change. Given that one of the biggest obstacles to global climate action is the lack of financing in an accessible and affordable manner, today during the World Climate Action Summit we announced the establishment of a $30 billion fund for climate solutions worldwide, to bridge the climate financing gap and facilitate access to it at an affordable cost."

With this US$30 billion commitment, the UAE's 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.

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