In a move amid COP28 the United Nations Climate Summit, the United Arab Emirates is poised to unveil a monumental $30 billion climate-focused investment fund, as disclosed by three sources with insights into the matter, reported Reuters.
The UAE will primarily fund this initiative, with support from major investors such as BlackRock, TPG, and Brookfield. Lunate Capital, an investor backed by the UAE, is anticipated to oversee the majority of the funds.
Lunate Capital aims to mobilize additional capital for investments specifically targeting climate-related ventures. BlackRock, TPG, and Brookfield intend to redirect funds from existing portfolios to contribute to the UAE’s climate-focused initiative. Discussions surrounding this colossal fund commenced post-summer and extended into October.
UAE’s Dual Agenda: Investment and Climate Action
As the hosts of the COP28 climate conference in Dubai, UAE’s strategy to expand oil and gas production has been met with criticism amid global efforts to mitigate carbon emissions, prompting the nation to promote increased financial commitments towards climate change solutions.
The unveiling of the $30 billion investment fund aligns with the UAE’s broader aim to encourage the finance and business sectors to intensify their contributions to combat climate change. This announcement, anticipated to occur during the two-week COP28 event, is expected to bolster the UAE’s position as a proactive advocate for climate action on the global stage.
The ambitious investment fund launch stands as a notable initiative, poised to complement discussions and negotiations at COP28, underscoring the UAE’s commitment to spearheading climate-focused initiatives while addressing its energy production plans in parallel.