COP28 UAE: President Sheikh Mohammed Bin Zayed announces $30bn fund to bridge climate finance gap

COP28 Conference UAE: The President of the United Arab Emirates, Sheikh Mohammed Bin Zayed Al-Nahyan pledged to establish a $30 billion fund for climate financing as world leaders from almost 200 countries gathered in Dubai for the summit.

According to the media reports, UAE President Sheikh Mohammed Bin Zayed made these remarks while addressing the COP28 Conference in Dubai today (Friday, December 1). The fund is intended to help ALTÉRRA, a recently established catalytic climate vehicle that will spearhead worldwide measures to establish a more equitable climate finance framework with an emphasis on increasing funding accessibility for the worldwide South.

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ALTÉRRA has evolved to become the world’s largest private investment vehicle with this $30 billion pledge for climate change action. Furthermore, by 2030, the organization intends to raise $250 billion globally. It aims to drive private markets into climate investments while focusing on undeveloped nations and emerging markets, where traditional investment has lagged due to higher perceived risks.

President Sheikh Mohammed Bin Zayed said, “I am pleased to announce the establishment of a $30 billion fund for global climate solutions. This fund is designed to bridge the climate finance gap.”

With emerging markets and developing countries anticipated to require $2.4 trillion yearly by 2030, the current shortage of climate finance is a big challenge. Fixing climate financing is a fundamental pillar of the COP28 action agenda.

The establishment of the vehicle, according to COP28 President Dr. Sultan al-Jaber, is a watershed event in the formation of a new age of international climate finance. He said, “ALTÉRRA offers a game-changing solution for recruiting private investments. Its size and structure will have a multiplier effect on climate-focused investment, making it a one-of-a-kind vehicle. Its introduction underscores the Action Agenda of the COP Presidency and the UAE’s efforts to make climate finance available, accessible, and cheap.”