The U.S.-U.A.E. Business Council hosted a conversation on Wednesday, March 20, 2024 with His Excellency Majid Al Suwaidi, Director General of COP28 and CEO-Designate of ALTÉRRA. The discussion was held at the law firm of Paul Hastings at their New York City offices in the Met Life Building. Discussion focused on key outcomes of COP28, including the landmark agreement that has become known as the U.A.E. Consensus, and the U.A.E.’s Presidential Action Agenda. H.E. Al Suwaidi also discussed his new role as CEO-designate of ALTERRA, a $30 billion catalytic climate investment fund charged with mobilizing investment at scale to finance a new climate economy, including a strong focus on solutions for the Global South.

H.E. Al Suwaidi discussed priorities for the remaining period of the U.A.E.’s COP28 Presidency before the transiton to Azerbaijan later this year at COP29. He noted that the main mission of the U.A.E COP Presidency is to now carry forward the outcomes of COP28 and the U.A.E. Consensus, with climate finance and investment continuing to play a central role in the action agenda. H.E. Al Suwaidi outlined the key achievements of the U.A.E. Consensus, including the unprecedented reference to the need to begin a transition from fossil fuels, in a just, orderly and equitable manner in this decade to enable the world to reach net zero emissions by 2050. H.E. Al  Suwaidi highlighted the high level of private sector engagement at COP28, including the oil and gas industry’s “ambitious commitments” to combat the climate crisis. He referenced the launch of the new Industrial Transition Accelerator that will speed up the decarbonization of hard-to-abate industries such as steel, aluminum, and transportation. 

H.E. Al Suwaidi linked the U.A.E. Consensus with broader efforts to promote multilateralism and international climate cooperation. He issued a call to action for industry representatives to build on the successes of COP28 and close the “massive climate investment gap.” He argued that closing this gap will require activating “every source of finance available” including public, multilateral, and private avenues. H.E. Al Suwaidi emphasized the particular need for catalyzing climate investment in the Global South. 

Citing the successful outcomes of COP28 as demonstrative of “U.A.E. diplomacy at its finest,” H.E. Al Suwaidi argued that the U.A.E. has the convening power to bring the Global South and Global North together. H.E. Al Suwaidi mentioned the creation of the COP Presidencies Troika, which unites COP28 with the next two COP Presidencies – Azerbaijan COP29 and Brazil COP30 – to drive ambitious collective climate action. 

Turning to the historic announcement by H.H. President Sheikh Mohammed bin Zayed at COP28, H.E. Al Suwaidi provided an overview of new climate fund ALTERRA, which aims to mobilize investments of $250 billion by the end of the decade, focusing on scaling investment for ‘global climate solutions,’ including in emerging markets and less-developed economies while delivering market returns. The U.A.E. has committed $30 biillion to creating ALTERRA and it will be organized into two components to achieve its mandates. The ALTÉRRA ACCELERATION fund will steer institutional capital towards climate investments at scale that have the greatest potential to accelerate the transition to a net-zero and climate resilient economy. Meanwhile, the ALTÉRRA TRANSFORMATION fund will provide risk mitigation capital to incentivize investment flows into the Global South, directly addressing the challenges that currently limit climate investment. 

H.E. Al Suwaidi provided a timeline of ALTERRA’s upcoming activities, noting that ALTERRA is in part a response to the vexing problem of trying to scale up climate finance investment. He called on development banks to do more to catalyze climate investments. He explained that ALTERRA can provide value in the gap between concessional finance and pure commercial finance. ALTERRA’s funds act that as a catalyst to drive innovation and bolster private sector investment in underdeveloped markets. Given that ALTERRA has partnered with Blackrock, TPG and Brookfield to scale climate investment, including in the Global South, he deemed the fund “already successful.” 

H.E. Al Suwaidi praised the U.S.-U.A.E. Partnership for Accelerating Clean Energy (PACE) as an “unparalleled agreement” that is a testament to the shared commitment of the U.A.E. and the United States to address the climate crisis. He encouraged industry representatives to build on PACE for two reasons: private sector engagement reinforces that there is a “business case” for climate action, and partnerships help deepen bilateral ties. H.E. Al Suwaidi cited successes of PACE to date, including partnerships with Masdar, ENEC, and Emirates Airline announced under PACE in the last year. He noted that PACE can also be seen as a framework that “promotes collaboration between industry partners.” 

H.E. Al Suwaidi predicted that the departure of U.S. Climate Envoy John Kerry will not change the United States’ commitment on climate issues.  He also noted COP28 has helped galvanize support and interest by young people in particular and that will continue to advocate for climate change.

For questions about this event, please contact Mathew Gardell at mgardell@usuaebusiness.org.