COP28: BlackRock partners with UAE private investment climate vehicle

The asset manager is receiving $2bn to invest in private debt and infrastructure strategies

On day 2 of COP28, the UAE announced a $30bn commitment to a newly launched private investment climate vehicle, ALTÉRRA, with $2bn invested in climate opportunities across BlackRock’s private debt and infrastructure equity strategies.

ALTÉRRA and the asset manager have formed a partnership to create the BlackRock Climate Transition Vehicle. Within this, $1bn will be invested into BlackRock’s Climate Transition-Oriented Private Debt strategy, a new private debt strategy focused on the low-carbon transition. It will finance a range of middle market companies, primarily in Europe and the US, which demonstrate climate transition characteristics.

See all ESG Clarity‘s COP28 coverage here.

A second $1bn will be allocated to transition-related infrastructure through BlackRock’s infrastructure equity strategies. This includes $650m committed to the BlackRock Global Infrastructure Fund IV, which invests in decarbonisation-related infrastructure assets. The other $350m will be invested in infrastructure in the Global South via a public-private finance vehicle focused on investing in climate-related infrastructure in emerging markets.

Described as “the world’s largest private investment vehicle for climate change action”, ALTÉRRA aims to mobilise $250bn globally by 2030

Ambassador Majid Al Suwaidi, COP28 director-general, will serve as ALTÉRRA’s CEO. He said: “ALTÉRRA 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 catalyses investment into the Global South.

“Our partnership with BlackRock is an important moment for ALTÉRRA and reflects our ambition to use this capital to mobilise at least $250bn of overall investment by 2030. BlackRock brings climate and industry-specific expertise and a broad variety of opportunities to invest in climate-related projects at scale. It is a high-calibre business which has committed to further enhancing its on-the-ground presence in the UAE.”

Larry Fink, chairman and CEO at BlackRock, added: “BlackRock is honoured to have been selected to participate in this important initiative, which will shape the way climate finance evolves in the coming years. The launch of ALTÉRRA will itself not only help mobilise much needed capital to support the transition in the Global South, it can also serve as a blueprint for other sovereigns and private sector actors to replicate, partnering to help unleash the trillions of dollars needed in developed and emerging markets. We look forward to bringing our expertise in mobilising private sector capital to enable its success.”


Natalie Kenway

Natalie is editor in chief at MA Financial covering ESG Clarity, Portfolio Adviser and International Adviser. She was previously global head of ESG insight for ESG Clarity and has been an investment journalist...