ALTÉRRA

United Arab Emirates (UAE) recently announced a $30 billion climate fund, ALTÉRRA that aims to attract $250 billion of investment by the end of the decade.

About ALTÉRRA:

• It was announced in collaboration with global asset managers BlackRock, Brookfield and TPG.
• ALTÉRRA was established by Lunate, a newly set up Abu Dhabi-based alternative investment manager with over $50 billion in assets.
• Aim: To steer private markets towards climate investments and focus on transforming emerging markets and developing economies (EMDE) with higher perceived risks.
• Focus areas: Energy Transition, Industrial decarbonization, Sustainable living and Climate technologies.
• Significance: It will steer institutional investors towards climate investments at scale and work to stimulate innovation, multiply private capital and reduce barriers to investment.
  • This would be beneficial for under-invested markets, including the Least Developed Countries (LDCs) and Small Island Developing States (SIDs).

Funding under ALTÉRRA:

• $25 billion to climate strategies, $5 billion to incentivize investment into the Global South and $6.5 billion to climate-dedicated funds for global investments.
• $1 billion into its Climate Transition-Oriented Private Debt strategy, and $1 billion to invest in infrastructure equity business.
• A Catalytic Transition Fund would be launched by private players to focus exclusively on developing countries, with up to $1 billion of ALTÉRRA cash.

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