PC: Business Wire
This fund, starting at the COP28, targets funding sustainable energy projects in almost all regions. The target for private capital is $250 billion by 2030.
A climate-focussed investment fund backed by Altérra, a $30bn UAE-based climate investment firm, has announced it raised $2.4bn. The fund that was unveiled at last year’s COP28 at Dubai is designed to invest in clean energy projects in emerging markets. This is almost half the amount targeted.
Altérra has provided a cornerstone commitment of $1 billion to launch the fund. Besides Altérra’s commitment, several big global investors have come forward to support the initiative, including NYSE-listed Brookfield Asset Management, which has committed 10% of the fund’s target. Other key partners include Canada’s Caisse de dépôt et placement du Québec, Singapore’s sovereign wealth fund GIC, Temasek, and Prudential, among others.
Focus on Emerging Markets
The fund will ensure acceleration in developing clean energy and other transition assets within the emerging markets, which include the Middle East, South and Central America, South and Southeast Asia, and Eastern Europe. Such focus on these regions should notably contribute to the global transition towards renewable energy and sustainable practices.
Investments from the fund are expected to start later this year. The firm will achieve a traditional first close by early 2025, which is a critical milestone in the timeline of the operations of the fund.
Capital Ambitions
In his February edition, Majid Al Suwaidi of Altérra detailed the ambitious target to bring in $250 billion in private capital investments by 2030, affording an unusually long-term vision in scaling up climate-related investments. In broad terms, such a bold objective underscores the initiative and potential investments from the private sector to kick-start changes in the battle against climate change, specifically in developing regions where clean energy infrastructure is still in its development stage.
Altérra has made effective use of securing mighty global investors, which solidifies its strong foundational investment into the cause. In these circumstances, the fund is well-positioned to steer long-lasting and meaningful effects on global clean energy initiatives. By investing big money in this field, Altérra will focus on transformative initiatives which may pave the way for the transition toward renewable sources of energy as well as contribute to long-term sustainability in locations where the clean energy sector is still under development. The fund’s methodology promises an ambitious approach toward climate action influence and strengthening, on the back of the private sector, shaping its role within the context of global clean energy.
