By Pita Ligaiula at COP28 in Dubai, UAE

At COP28, the UAE made a groundbreaking announcement, committing US$30 billion to Alterra, a revolutionary climate-focused investment vehicle.

The initiative, described as a “defining moment” by COP28 President Dr Sultan Al Jaber, aims to reshape international climate finance, prioritizing accessibility for the Global South.

“With Alterra, we are creating a multiplier effect in climate-focused investment, making it a vehicle like no other,” said Dr Al Jaber, who will also chair Alterra’s Board.

The vehicle, designed to be the world’s largest private investment initiative for climate action, seeks to mobilise a staggering US$250 billion globally by 2030.

Ambassador Majid Al Suwaidi, COP28 Director-General and Alterra’s Chief executive officer, emphasised its role in stimulating a global green finance ecosystem.

Alterra,, established by Lunate, an independent global investment manager, is set to contribute to COP28’s Action Agenda by accelerating the transition to a low-carbon economy and promoting climate resilience.

Alterra’s two-part structure, comprising Alterra acceleration (US$25 billion) and Alterra transformation (US$5 billion), is aligned with COP28’s priorities: Energy Transition, Industrial Decarbonisation, Sustainable Living, and Climate Technologies.

Alterra, acceleration aims to steer institutional capital toward climate investments on a large scale, serving as an anchor investor and co-investor in high-impact projects globally.

Alterra transformation, on the other hand, will provide risk mitigation capital to incentivize climate investment in the Global South, fostering inclusivity and leveraging concessional finance for Least Developed Countries (LDCs) and Small Island Developing States (SIDS).

In collaboration with launch partners BlackRock, Brookfield, and TPG, Alterra, has committed US$6.5 billion to climate-dedicated funds for global investments, including the Global South. The partners, renowned entities in the financial sector, are expected to mobilize additional capital from institutional investors.

Alterra,’s commitment to immediate capital investment includes the development of over 6.0 GW of new clean energy capacity in India, with plans for wind and solar projects producing clean power by 2025.

The vehicle and its partners are actively exploring other impactful opportunities, such as an African development platform and a rural electrification platform in Latin America.

Alterra,is set to establish a Climate Impact Framework to ensure positive climate transformation, aligning with international best practices, accountability, and transparency. Ambassador Al Suwaidi emphasized the vehicle’s role in driving a new climate economy, marking a significant step towards addressing climate challenges on a global scale.