Launch partners include BlackRock, TPG, Brookfield
The government of the UAE at the Dubai-hosted COP28 climate conference announced the launch of ALTÉRRA, a new investment platform aimed at driving private capital towards climate investments, and on improving access to climate finance in emerging markets, with a particular focus on the Global South.
Launching with a $30 billion commitment from the UAE, the new platform is the largest investment vehicle for climate change action, according to the UAE, adding that it aims to mobilize $250 billion globally by 2030. Launch partners for the new platform include BlackRock, Brookfield and TPG, with ALTÉRRA investing $6.5 billion into climate-focused funds by the fund managers.
According to the UAE, the launch of the new platform is aimed at supporting the creation of “a fairer climate finance system,” noting a need for $2.4 trillion annually in emerging markets and developing economies to address climate change, and fixing climate finance as one of COP28’s key Action Agenda pillars.
The new platform will utilize a two-part structure, including ALTÉRRA ACCELERATION, a $25 billion component that will act as an anchor investor and co-investor in climate strategies to help steer institutional capital towards climate investments at scale that support the net zero transition and climate resilience, and ALTÉRRA TRANSFORMATION, a $5 billion component providing risk capital to incentivize capital flows into the Global South and to leverage concessional finance to attract climate investments to Least Developed Countries (LDCs) and Small Island Developing States (SIDS).
Launch partners BlackRock, Brookfield and TPG will be expected to mobilize capital from other institutional investors and global entities, according to a statement announcing the new platform’s launch. Under the BlackRock partnership, ALTÉRRA Acceleration will commit US$1 billion to BlackRock’s recently launched Climate Transition-Oriented Private Debt strategy, with another $1 billion from ALTÉRRA Acceleration and ALTÉRRA Transformation invested in transition-related infrastructure through BlackRock’s infrastructure equity strategies, and an additional S$350 million will be invested in infrastructure in the Global South. Brookfield has received a commitment of $2 billion from ALTÉRRA Acceleration to its Brookfield Global Transition Fund II to invest in clean energy and transform businesses in carbon-intensive sectors and up to $1 billion from ALTÉRRA Acceleration for the launch of the Catalytic Transition Fund targeting COP28 Action Agenda pillars Energy Transition, Industrial Decarbonization, Sustainable Living and Climate Technologies in emerging and developing markets. ALTÉRRA also committed $1.5 billion to TPG Rise Climate private equity funds, including $500 million to a new Global South Initiative, which will also receive a $1 billion co-investment from TPG Rise Climate II.
Majid Al Suwaidi, Managing Director of Dubai Media City, Dubai Studio City and Dubai Production City for TECOM Group Dubai, and COP28 Director-General, will serve as CEO of ALTÉRRA, and UAE Minister of Industry and Advanced Technology, and COP28 President, Dr. Sultan Ahmed Al Jaber will chair ALTÉRRA’s Board.
Al Jaber said:
“ALTÉRRA provides a transformational solution for attracting private capital. Its scale and structure will create a multiplier effect in climate focused investment, making it a vehicle like no other. Its launch reflects the COP Presidency’s Action Agenda and the UAE’s efforts to make climate finance available, accessible and affordable.”