Creating a Cleaner Future | Global Conference 2025

Global Climate Trajectory Status

• Pre-Paris Agreement, the world was on a 5°C warming trajectory; current national commitments place the world on a ~3°C trajectory.
• Further progress toward the 1.5°C and 2°C targets is anticipated following the tally of new country commitments later this year.
• Climate impacts are no longer abstract or limited to vulnerable regions; they are now affecting all economies and communities globally.
• Simon Steele (UNFCCC) asserts the 1.5°C target remains scientifically viable, noting that while single-year breaches occur, the long-term target requires accelerated action.
• Action is required across three pillars: mitigation, adaptation, and loss and damage, with adaptation needs accelerating due to immediate impacts.

Geopolitical Shifts and US Policy

• The US withdrawal from the Paris Agreement and perceived lack of urgency under the current administration create a "void" in global leadership.
• Simon Steele notes that 194 countries remain committed to Paris Agreement goals, signaling that other economies will fill the leadership vacuum.
• Majid Al-Sawadi (Altera) states the decarbonization agenda is "locked in" to many major economies due to perceived economic opportunities, regardless of US political fluctuations.
• The panel observes a "backlash" against climate action hype in the West, contrasting with consistent, effective action from other regions like the Middle East.

The UAE's Altera Fund Strategy

• The UAE launched the Altera Fund with a $30 billion mandate, established to channel finance flows to the global south and support climate tech.
• Fund Allocation: $25 billion is designated for acceleration (global investment), while $5 billion is specifically committed to the global south.
• Leverage Targets: The fund aims to mobilize $250 billion of external capital from its $30 billion base (approx. 8:1 leverage).
• Structure: Altera operates on a dual mandate of commercial returns and impact, utilizing a "first-in" capped capital model to catalyze private investment.
• Co-Investments: The fund has seeded two new strategies with Brookfield (CTF fund) and TPG (GSI Global South Initiative), raising 4x to 9x on initial capital.
• Investment Focus: While mitigation investments are more mature, the fund is increasingly targeting adaptation, industrial decarbonization, agricultural water, and sustainable living.
• Pipeline Status: The fund reports being "overwhelmed" by the project pipeline, with energy demand expected to double by 2050 creating a supply-demand gap for clean solutions.

Financial Structures and Blended Finance

• Majid Al-Sawadi emphasizes the need to bridge the gap between concessional development finance and private capital to create blended solutions.
• The panel discusses the World Bank taking a junior risk tranche position to unlock mezzanine investments from private entities.
• Ajay Banga (World Bank President) is cited as a leader in developing innovative financial structures to unlock global finance for the global south.
• Private capital partners (BlackRock, TPG, Brookfield) are actively raising funds against Altera's initial capital, signaling strong market appetite.
• The narrative is shifting from viewing climate action as a cost to prosperity toward viewing it as an opportunity for scalable, cost-competitive clean energy and economic savings.

Moderator Conclusions and Future Outlook

• Despite negative political rhetoric, significant behind-the-scenes action and steady progress continue to advance the climate agenda.
• Innovative financial models and blended finance mechanisms are emerging to address the scale of funding required.
• The 1.5°C target is not dead but remains a goal requiring sustained aspiration and accelerated implementation across all sectors.