Climate finance: Alterra, GCFC alliance to benefit emerging economies

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Alterra, the pioneering $30bn climate investment fund launched at COP28, and ADGM-based Global Climate Finance Centre (GCFC), have unveiled their strategic collaboration to amplify climate investments in emerging and developing economies.

Alterra, with its ambitious goal to mobilise up to $250bn of institutional and private capital by 2030, is committed to addressing the climate financing gap.

Its two-part structure not only targets investments crucial for keeping global warming within the 1.5C threshold but also pioneers avenues for directing capital towards the Global South, fostering new investment landscapes in emerging markets and developing economies.

Complementing Alterra’s mission, the GCFC plays a pivotal role in fostering an ecosystem conducive to low-carbon, sustainable and resilient projects through a blend of cutting-edge research, capacity-building programmes, and expert-led financial frameworks.

The new partnership will leverage the combined strengths of both organisations to drive climate action.

Alterra-GCFC partnership to leverage strengths

Ambassador Majid Al Suwaidi, director general of COP28 and CEO of Alterra, emphasised the necessity for unprecedented collaboration, innovative approaches, and tools to unlock capital flows into transformative climate solutions and 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 exploring solutions necessary to address the critical challenges we face in advancing the climate transition,” he said.

Mercedes Vela Monserrate, CEO of GCGC, echoed this sentiment, highlighting the partnership’s significance in accelerating climate finance to developing economies. “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.”

The collaboration will work in several key areas to enhance global capacity and uptake of climate investments. These include a joint effort to develop a cohesive approach to transition frameworks, and engaging stakeholders to align with Alterra’s evolving climate impact framework.

The collaboration aims to identify and implement effective strategies for scaling up climate finance deployment in emerging and developing markets. This may involve comprehensive market research, mapping landscapes of institutions providing de-risking and guarantee instruments, and exploring diverse approaches and partnerships to unlock investment opportunities.

It will also look at the co-creation of thought leadership content, addressing crucial climate finance topics including de-risking solutions, investment opportunities across various sectors and regions, and advancement of transition finance solutions.

Both GCFC and ALTÉRRA will enable synergies within the climate finance landscape by aligning with existing UAE and global climate initiatives. Additionally, both entities will collaborate in organising events to facilitate knowledge sharing, forge partnerships, and advance innovative climate finance solutions.