COP28 – UAE president announces $30 bln fund to bridge climate finance gap

DUBAI, Dec 1 (Reuters) – Sheikh Mohammed bin Zayed Al Nahyan, President of the United Arab Emirates, host of the COP28 climate change summit, said on Friday that he would attract $250 billion in investment by the end. announced the establishment of a $30 billion climate change fund to of the 10’s.

According to a statement from the COP28 Presidency, the fund, named ALTÉRRA, will allocate $25 billion for climate change strategies and $5 billion specifically to facilitate investment flows to the Global South.

According to the statement, Altera is partnering with global asset management companies BlackRock (BLK.N) and Brookfield.in partnership with TPG (TPG.O), is committing $6.5 billion to a dedicated climate fund for global investments, including in the Global South.

This measure will “incentivize private markets to invest in climate change and focus on transformation in emerging markets and developing countries, where traditional investments are lacking due to perceived high risks across the region.” That’s the purpose,” he added.

BlackRock said in a statement that Altera has committed $1 billion to a climate-oriented private debt strategy, as well as $1 billion to invest or co-invest in BlackRock’s infrastructure equity business.

Brookfield Asset Management announced it would take up to $1 billion in cash from Altera and launch a new Catalyst Transition Fund focused solely on developing countries. ALTERRA also committed to invest $2 billion in a second Brookfield Global Transition Fund.

ALTERRA was founded by Lunate, a newly formed alternative investment manager based in Abu Dhabi with over $50 billion in assets.

Lunat is owned by its senior management team and Chimera Investment LLC, which is overseen by Sheikh Tahnoun bin Zayed Al Nahyan, UAE National Security Adviser and brother of the President. is part of a business empire.

The UAE has drawn criticism for its plans to expand oil and gas production as the world struggles to curb climate-damaging carbon emissions produced by fossil fuels.

Against this backdrop, the UAE is keen to encourage financial institutions and businesses to put money into climate action more broadly, and is expected to open its own checkbook during the two-week UN climate change summit. was.

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William leads the UK Breaking News team, ensuring Reuters is the first to report on key developments in politics, economics and general news. He previously spent nearly a decade at Westminster as a British political correspondent, and before that covered financial markets during the eurozone debt crisis.