The UAE is repositioning itself as a convenor of climate diplomacy and a direct architect of global green finance, with a strategy designed to bridge climate ambition and financial execution.
Speaking at the Dubai FinTech Summit 2025, HE Dr Amna bint Abdullah Al Dahak, Minister of Climate Change and Environment, laid out a detailed roadmap of how the UAE is leveraging its diplomatic legacy to drive capital flows into the climate economy. From operationalising the Loss and Damage Fund to launching the world’s largest private-sector-led climate investment platform—Altera—the UAE aims to convert multilateral commitments into tangible global outcomes.
“What we’re doing now is turning declarations into delivery,” said the minister. “The groundwork is done. The tools are in place. Now, it’s about execution at scale.”
Loss and Damage Fund
One of the most high-profile deliverables from COP28 in Dubai was the activation of the Loss and Damage Fund, aimed at supporting climate-vulnerable nations that face the worst consequences of extreme weather, rising sea levels, and ecosystem collapse. The UAE kicked off the fund with a $100 million pledge—on Day 1 of COP28. As of March 2025, the fund has received $766 million from 25 contributing countries.
“The infrastructure is now in place,” she said. “Our focus must be converting pledges into disbursements and ensuring rapid, equitable access for the most vulnerable communities.”
The minister detailed the institutional milestones: the appointment of an executive director, the selection of the Philippines as the host country, and a hosting arrangement for the secretariat with the World Bank. These developments followed the third board meeting in Baku, which confirmed the fund’s governance framework and marked the transition from planning to deployment.
Altera Fund
Launched at COP28 with an initial $30 billion from the UAE, the Altera fund aims to crowd in up to $250 billion in climate-related investments by 2030. The fund represents a structural shift in how climate finance is approached—targeting environmental impact and financial returns, particularly in frontier markets of the Global South.
“We want to prove that return on investment and return on environment can go hand in hand,” said the minister. “This is a paradigm shift in how capital is deployed for climate outcomes.”
Unlike traditional climate funds that rely on concessional lending or grants, Altera is structured to operate like a sovereign-backed venture platform. Its first investment—announced two weeks before the Summit—was a $100 million injection into Everen, an Indian clean energy firm. The goal is to catalyse sustainable economic activity in emerging markets through bankable, scalable projects.
The fund targets sectors including renewable energy, sustainable infrastructure, agri-tech, and carbon mitigation technologies—areas where financing gaps remain acute despite global climate urgency.
Countdown to accountability
With COP30 in Brazil on the horizon, the minister emphasised the importance of transparent national climate commitments—known as Nationally Determined Contributions (NDCs)—in tracking progress toward net-zero goals. The UAE was the first country to submit its updated NDC before COP29, reinforcing its commitment to early and verifiable delivery.
The next wave of NDCs, due in September 2025 after an extension by the UNFCCC, will serve as a key benchmark for measuring global progress on emissions reduction, climate adaptation, and financing needs.
“These are not just documents,” she said. “They are investment roadmaps and accountability mechanisms. They must reflect both ambition and practical pathways to net zero.”
First-line action
The UAE’s energy transition strategy is anchored in two pillars: doubling energy efficiency and tripling renewable capacity by 2030. These targets were formalised under the “UAE Consensus” during COP28. The minister highlighted how inefficiencies in energy systems are a key source of unnecessary emissions—leakages that can be addressed through better design and policy reform.
“We’ve gone from ambition to acceleration,” the minister said. “And we’re bringing others with us by investing in scalable solutions abroad.”
In 2023 alone, the UAE increased renewable capacity by 70%. The first of its kind in the region, the Barakah nuclear plant now provides 25% of the nation’s electricity. Combined with large-scale solar and wind investments, the UAE has committed over $50 billion globally in clean energy projects—another $50 billion targeted over the next 10 years.
Financing innovation and de-risking green capital
The minister also underscored the importance of climate financing models that are attractive to institutional investors. Traditional project finance structures often fail to address the risk profiles of climate projects in emerging markets. The solution, she argued, lies in innovation and blended finance—structures that combine public capital, philanthropic contributions, and private equity to de-risk investments.
“Altera is one model, but we need more,” she said. “We need instruments that de-risk climate finance and create appetite for capital to move at scale.”
She called for enhanced international cooperation on financial structuring, multilateral guarantees, and pipeline development to make climate projects viable and attractive.
The Mangrove Alliance
Beyond finance, the UAE champions nature-based solutions through regional and global partnerships. The Mangrove Alliance for Climate—launched at COP27 with Indonesia—now includes 45 countries and represents 60% of global mangrove ecosystems. In Baku, members endorsed the MAC Strategy 2030, which focused on funding mangrove restoration and enabling carbon credit mechanisms under Article 6 of the Paris Agreement.
“Nature must be part of the climate equation,” she said. “It is not just a sink; it is a solution.”
The UAE and Indonesia are jointly establishing a global mangrove research centre, the Mohammed bin Zayed Mangrove Research Institute, to advance science-based policymaking and carbon accounting.
Private sector integration
A defining feature of the UAE’s climate model is deep private-sector integration. Through the National Dialogue for Climate Ambition, the UAE has held 14 rounds of consultation with corporate leaders, encouraging them to build their net-zero roadmaps.
This “whole-of-economy, whole-of-society” approach aims to ensure a transition that balances emissions reduction with economic prosperity.
“Governments cannot do this alone,” she said. “Partnerships with the private sector and civil society are essential. Net zero must be inclusive, not extractive.”
As 2025 is confirmed as the warmest year on record, urgency is no longer abstract. The minister’s message was clear: the architecture is in place—funds, platforms, alliances—and now, it is a matter of deployment, governance, and scalability.
“Climate declarations mean nothing if they don’t translate into financing, infrastructure, and impact on the ground,” she said. “It’s time to turn the page from promises to performance.”
