Dubai, 1 December 2023 (WAI): The 28th Summit Conference of the Parties, referring to the annual meeting of countries that are part of the U.N. Framework Convention on Climate Change (UNFCCC), was held in Dubai.
At the U.N.’s COP28 conference, UAE President Sheikh Mohamed bin Zayed promised $30 billion for finance related to climate change. A climate vehicle called ALTÉRRA aims to increase financial accessibility for Global South nations while promoting equality in global climate finance.
“We committed to bringing the world together when we agreed to host COP28,” he said.
But with a $30 billion fund, ALTÉRRA has become the world’s leading private investment organization committed to climate change action. By 2030, the goal will be to mobilize an incredible $250 billion worldwide.
ALTÉRRA’s primary goal is to steer private markets toward climate-related investments, especially in underdeveloped and rising nations.
Traditionally, conventional investment has been scarce in developing regions; ALTÉRRA aims to close this gap by leading innovative projects in these sectors.
At Friday’s COP28, Sheikh Mohamed declared, “I am thrilled to announce the creation of a $30 billion fund for global climate solutions.” “This fund aims to close the financing gap for climate change.”
Where it is needed, financing for climate action is currently insufficiently accessible, affordable, or available. It will cost emerging markets and developing countries $2.4 trillion a year by 2030 to combat climate change.
Fixing climate financing has been prioritized by COP28 as a significant priority item. However, Dr. Sultan al-Jaber, the president of COP28, called the vehicle’s inauguration a “defining moment” that marked the beginning of a new era in global climate financing.
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“ALTÉRRA offers a transformative solution for attracting private capital,” continued Al-Jaber, who will be the organization’s chair. It is a vehicle unlike any other because of its size and structure, which will multiply investments with a focus on climate change.
Its introduction also represents the Action Agenda of the COP Presidency and the UAE’s endeavors to make climate finance easily accessible and reasonably priced.
The goal of ALTÉRRA, which was introduced at COP28, is to improve climate resilience and hasten the transition to a low-carbon economy. According to the COP28 Director-General, creating a global ecosystem for green finance and promoting investment in the Global South is essential.
An International Relations graduate, with a keen interest in diverse areas of IR; diplomacy, global politics & human rights.
