COP28: UAE commits $30 billion to developing nations for climate projects  

The United Arab Emirates has announced a $30 billion investment fund designed to inject more capital into climate-related projects in developing nations.   

In partnership with private contributors, the UAE aimed to mobilize $250 billion by 2030. 

This fund is dedicated to supporting initiatives that drive the transition to green energy and the advancement of new technologies geared towards addressing the challenges of the climate crisis. 

The UAE announced that the Gulf country hosts the UN Climate Change Conference, COP28, in Dubai. 

ALTÉRRA, the initiative, will be the largest private investment commitment for climate change. The investment will aim to aid emerging markets with climate change funding by mobilizing $250 billion by 2030. The initiative plans to accelerate the global shift to net zero and decarbonize more efficiently. 

 COP28 President Dr. Sultan Al Jaber, who chairs ALTÉRRA’s board, stated:  

  • “ALTÉRRA provides a transformational solution for attracting private capital. Its scale and structure will create a multiplier effect in climate-focused investment, making it a vehicle like no other. Its launch reflects the COP Presidency’s Action Agenda and the UAE’s efforts to make climate finance available, accessible and affordable.” 

ALTÉRRA ACCELERATION and ALTÉRRA TRANSFORMATION form essential components of the broader ALTÉRRA initiative.

While the former concentrates on fortifying climate resilience through funding for decarbonization and climate strategies, the latter alleviates capital shortages in the Global South, opening avenues for new opportunities and investment attraction. 

Speaking on the initiative, Ambassador Al Suwaidi, said: 

  • “ALTÉRRA is a critical element in the UAE’s efforts to create a global green finance ecosystem that stimulates and empowers the growth of a new climate economy. It will build a vibrant climate investment landscape which further catalyzes investment into the Global South.”  

IMF Hints Debt-For-Climate Swap Deal 

In another place, the International Monetary Fund is pondering the creation of a debt-for-climate exchange initiative to help nations grappling with debt, such as Nigeria, in lessening their fiscal challenges and bolstering ecological conservation endeavours. 

Kristalina Georgieva, the Managing Director of the IMF, shared in an interview at COP28 that the organization has not yet settled on a conclusive mechanism for the debt-for-climate swap initiative. 

  • “Decarbonization poses significant challenges for nations with substantial debt burdens. Climate change and debt are two interrelated issues confronting these countries. Debt-for-climate swaps hold great promise for us,” Georgieva stated on the sidelines of the ongoing COP28 conference. 
  • “Our objective is to develop key performance indicators (KPIs) that will enable countries to forecast their climate actions and qualify for debt relief to finance those actions. 
  • “We haven’t reached that stage yet, but we’re actively considering it,” she added. 

 


Download Nairametrics App for breaking news and market intelligence.