Dubai, Dec 1 (IANS) As world leaders gathered for COP28, the UAE on Friday announced a $30 billion commitment to the newly launched catalytic climate vehicle, ALTERRA, that will drive forward international efforts to create a fairer climate finance system, with an emphasis on improving access to funding for the Global South.

With this $30 billion commitment, ALTERRA becomes the world’s largest private investment vehicle for climate change action and will aim to mobilise $250 billion globally by 2030.

It aims to steer private markets towards climate investments and focus on transforming emerging markets and developing economies, where traditional investment has been lacking due to the higher perceived risks across those geographies.

Finance for climate action is not currently available, accessible or affordable enough where it is needed. By 2030, emerging markets and developing economies will require $2.4 trillion every year to address climate change.

That is why COP28 made fixing climate finance a key pillar of its Action Agenda and has worked to deliver ambitious solutions, including mobilising private markets at scale.

The launch of the vehicle was described by COP28 President Sultan Al Jaber as a “defining moment” in the creation of a new era of international climate finance.

Al Jaber, who will chair ALTERRA’s Board, added: “ALTERRA 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.”

Ambassador Majid Al Suwaidi, COP28 Director-General, will serve as ALTERRA’s Chief Executive Officer.

ALTERRA will have a team of specialist climate investment professionals who bring a strong track record of investing in emerging and developing markets.

It has been established by Lunate, an independent global investment manager, and is domiciled in the Abu Dhabi Global Market.

ALTERRA is one of a range of finance-led initiatives launched during COP28 to accelerate the global transition to a low-carbon economy and build climate resilience.

Ambassador Al Suwaidi, said: “ALTERRA 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.”

ALTERRA will have an innovative two-part structure to spur new ideas, incentivise policy and regulatory frameworks, and identify solutions to rapidly deploy capital across the entire value chain of the new climate economy.

It has a dedicated investment focus on supporting four key priorities that underpin COP28’s Action Agenda, namely: Energy Transition, Industrial Decarbonization, Sustainable Living and Climate Technologies.