COP28: UAE tackles climate crisis with $30bn investment

The United Arab Emirates (UAE) has promised to inject $30 billion into projects to tackle climate-related crises in developing nations.

The UAE President, Mohammad bin Zayed, who announced this at the opening ceremony of the United Nations’ COP 28 Climate Summit on Friday, said the $30bn donation would bridge current gaps in climate finance and help stimulate private investment.

The figure, in addition to private contributions, will rise to $250 billion by 2030 and is dedicated to funding initiatives that drive the transition to green energy and the advancement of new technologies to address the challenges arising from climate change.

Bin Zayed said: “The lack of affordable available climate finance has long been one of the biggest obstacles in advancing climate action.

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“The UAE fund dubbed Alterra will be designed to ensure availability and accessibility, as well as affordability at scale. The fund aims to stimulate investment of around $250bn by 2030.”

“About $25 billion will be allocated to steer institutional capital towards climate investments at scale while $5bn will provide risk mitigation capital to incentivise investment flows for developing countries, according to the UAE.”

“It will also create opportunities to leverage concessional finance to further attract climate investment to Least Developed Countries (LDCs) and Small Island Developing States (SIDS).

“The fund has been launched with US investment group Blackrock, Canada-based asset management firm Brookfield, and Californian asset management company TPG as initial partners, with $5.6 billion already earmarked for climate-dedicated funds for developing countries.”

By: Babajide Okeowo

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