Dubbed ALTÉRRA, the fund will allocate $25 billion to climate strategies and $5 billion to incentivize investment flows to countries like Uganda or generally the global South to fight the effects of climate change.
The
United Arab Emirates on Friday announced a $30 billion climate fund that aims
to attract $250 billion of investment by the end of the decade.
Dubbed
ALTÉRRA, the fund will allocate $25 billion to climate strategies and $5
billion to incentivize investment flows to countries like Uganda or generally
the global South to fight the effects of climate change.
Climate change refers to long-term shifts in
temperatures and weather patterns mainly caused by human actions especially
burning fossil fuels like coal, and oil and gas.
The president of the ongoing Climate Change
Conference in Dubai or COP28,Dr.
Sultan Al Jaber said the funds will be delivered under a private climate
financing mechanism known as ALTÉRRA.
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The innovation is part UAE Declaration on a Global
Climate Finance Framework declaration at the World Climate Action Summit (WCAS).
Dr. Sultan Al Jaber, as described it as “innovative
thinking…for financing the new climate economy”
“No single initiative will create the climate
finance system we need. Together, we must build a holistic ecosystem of
solutions.”
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Dr. Al Jaber announced the establishment of “The Global Climate Finance
Centre that will support the delivery of the Declaration by driving fit-for-purpose
financial policies and project pipelines to unlock funds at unprecedented
scale. the Global Climate Finance Centre and the Declaration will champion
.
The Declaration aims to ensure that climate finance
is available, affordable, and accessible.
Dr.Al Jaber said the Declaration focuses on rebuilding
trust, reframing climate investments as economic opportunities on scaling up
climate finance
Some of the leaders from the global South including
Kenya’s President, William Ruto, Ghana’s Nana Akufo-Addo, India's Prime
Minister, Shri
Narendra Modi, and the Prime Minister of Barbados, Mia Amor Mottley welcomed the
innovation as they continued to as for more climate financing.
President
William Ruto is in Dubai to further push the Nairobi Declaration on Climate
change from the Africa Climate Summit.
While
thanking the innovation by UAE, Ruto emphasized that the world is in the
current climate crisis because of fossil fuel energy and that it will get out
of the crisis through renewable energy.
“And
that is why we believe that we are very well positioned to be a part of the
solution to the challenge that we have today. So that no country is left to
make a choice and climate action,” said Ruto
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African
leaders have right from the September 2023 Africa Climate Summit asked for a
reform and IMF. They have complained of high-interest rates on loans from the IMF
and the World Bank.
That is an issue that the President of Ghana, Nana
Akufo-Addo raised again during a panel discussion with UK Prime Minister, Richard
Sunak, William Ruto of Kenya, Mia Amor Mottley of
Barbados, EmmanuelMacron of France, and India’s Prime
Minister, Shri Narendra Modi.
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/ The UAE has also committed an additional $200
million of Special Drawing Rights to the IMF Resilience and Sustainability
Trust to support climate resilience in developing countries.
The Declaration is part of the positive outcomes of COP28
being held in a country that has largely depended on its oil and gas resources
for development.
It follows a $4.5 billion commitment to clean energy
projects in Africa earlier in the year. The Declaration captures the
achievement of other outcomes this year, including the replenishment of the
Green Climate Fund, the expected delivery of the decade-old $100 billion goal
in 2022, and the early capitalization of Loss and Damage.
The UAE also launched the Global Climate Finance
Centre (GCFC), a private-sector-focused think tank that will be a climate
finance center of excellence and the first of its kind in the region. It will
provide research, and capacity building to catalyze low-carbon, high-growth
investments in the region and globally.