The UAE has announced a $30 billion investment vehicle for climate action.

This is a landmark announcement. The vehicle will silence critics who questioned the choice of UAE, a fossil fuel-driven economy, to host COP28.

The US$30 billion ALTÉRRA aims to finance the new climate economy in the region. This is the largest ever climate-focused investment vehicle. It aims to mobilize $250 billion of institutional and private capital into climate action by 2030.

US$5 billion of ALTÉRRA will form the Transformation Fund, dedicated to incentivizing investment flows to developing countries to address critical climate investment needs in the Global South. The focus will be on energy transition, industrial decarbonization, sustainable living, and climate technologies.

Interestingly, the chair of COP28, His Excellency Dr. Sultan Ahmed Al Jaber, is also chairman of ALTERRA.