UAE launches $30B climate fund, working with BlackRock and TPG
Illustration: Annelise Capossela/Axios
The United Arab Emirates is pledging $30 billion for a climate fund, working with BlackRock, TPG and Brookfield as launch partners, the groups announced on Friday at COP28.
Why it matters: UAE officials dubbed the fund, called Alterra, "the world's largest private investment vehicle for climate change action," and it's working with some of the top U.S. financial groups.
Details: Alterra is two vehicles, wrote Ben Geman in Generate.
- The $25B "acceleration" fund will steer capital toward developed and emerging markets. The $5B "transformation" fund will provide risk mitigation finance to areas including least-developed nations and small island states.
- The energy and climate tech fund and its partners are "actively exploring" opportunities like a 5GW+ slate of African wind and solar projects.
- An initial $6.5B commitment includes funds for developing over 6 gigawatts of new "clean energy" capacity in India.
Of note: Climate Tech VC has more on the specific fund projects with BlackRock, TPG and Brookfield.
Yes, but: Controversial COP28 head Sultan Ahmed al-Jaber chairs the fund's board.
Thought bubble: The fund is a major commitment to concessional finance, Andrew Freedman writes, but especially in the least developed countries where energy transition needs are most acute.
- However, the lack of a track record of UAE renewables funding, and the placement of a controversial COP chair atop the masthead, is likely to be met with considerable skepticism.
