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Boost for climate investment

Key partnership to accelerate global climate investments

ABU DHABI, April 18, 2024

In a major boost for climate action, a new partnership was announced to collaborate on scaling up climate investments in emerging and developing economies.

The collaboration between the Global Climate Finance Centre (GCFC), a COP28 legacy initiative focused on catalysing climate investments and solutions globally, and Alterra, the world’s largest climate-focused private investment vehicle, aims at leveraging their combined strengths to drive climate action.

The GCFC, head-quartered in Abu Dhabi Global Market (ADGM), helps to create an ecosystem that enables investments into low-carbon, sustainable and resilient projects by bringing together cutting-edge research, capacity building programs, and leading experts to develop fit-for-purpose financial frameworks.

It aims to address key barriers that deter climate investment flows to help make climate finance available, affordable, and accessible.

The centre serves as the hub for experts, financial institutions, businesses, and governments to collaborate, innovate, and channel capital towards climate solutions, projects, and initiatives that promote sustainable development, with a particular emphasis on emerging and developing markets.

Alterra, the $30 billion catalytic climate investment fund launched at COP28, seeks to bridge the climate financing gap by mobilising up to $250 billion of institutional and private capital by 2030 and driving climate investment to where it is most needed to unlock impact at scale.

It features an innovative two-part structure, designed to both bridge the gap in investment into the solutions needed to keep the world on the 1.5C pathway, and to drive investment into the Global South, and create new investment opportunities and strategies for emerging markets and developing economies (EMDEs).

The GCFC and Alterra will collaborate in several key areas to enhance global capacity and uptake of climate investments:

Impact: collaboratively develop a shared approach to transition frameworks and engage stakeholders to align with Alterra’s evolving climate impact framework.

Innovative Partnerships and Approaches: work together to identify the most effective methods to scaled-up deployment of climate finance into emerging and developing markets. These initiates may involve market research and landscape mappings on institutions that provide de-risking and guarantee instruments, as well as exploring different approaches and partnerships that would help unlock investment and collaboration.

Leadership: co-produce thought leadership and addressing key climate finance topics such as de-risking solutions, investment opportunities across diverse sectors and geographical regions, and the advancement of transition finance solutions.

Integration: both organisations are committed to fostering synergies within the climate finance landscape by collaborating on existing United Arab Emirates' and global climate initiatives. Additionally, the GCFC and Alterra will co-develop and co-host events to facilitate knowledge sharing, partnership building, and the advancement of innovative climate finance solutions.

Ambassador Majid Al Suwaidi, CEO of Alterra, said: “Financing the new climate economy will require unprecedented levels of collaboration, innovative approaches and tools to unlock capital flows at scale into transformative solutions and into developing countries.

“Alterra is committed to this endeavour, and our new partnership with GCFC is an important step towards easing the bottlenecks that impede climate investments and to explore solutions necessary to address the critical challenges we face in advancing the climate transition."

Mercedes Vela Monserrate, CEO of the Global Climate Finance Centre, said: “The partnership between GCFC and Alterra is a significant step forward in accelerating the flow of climate finance to developing economies, where it’s urgently needed.

“By combining our expertise and resources, we can unlock new investment opportunities, drive positive climate impact, and contribute to a more sustainable future for all.” – TradeArabia News Service

 




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