United Arab Emirates climate fund Alterra has announced plans for a new $1.2 billion climate co-investment vehicle with Spanish bank BBVA as an LP.
BBVA has already committed $250 million to the newly launched Alterra Opportunity Fund, as the lender aims to invest in climate-aligned infrastructure, PE and private credit globally.
The UAE launched Alterra in December 2023 at the COP28 climate conference, with a $30 billion investment, aiming to mobilize $250 billion globally by 2030 to finance the climate economy and accelerate the transition to a low-carbon economy.
According to PitchBook data, Alterra has made at least eight commitments across vehicles managed by TPG, BlackRock and Brookfield Asset Management.
In June last year, Alterra announced a €50 million ($58 million) commitment via its Acceleration Fund to Absolute Energy, an Italian renewable energy platform. In April, it also invested $100 million in the Indian renewable energy company Evren, alongside Brookfield.
The fund has also completed nine direct investments. Six of these were in 2025, including the acquisition of waste management businesses Rupert Disposal, SWR Waste Management and Profusion GNP.
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BBVA said it aimed to channel €700 billion into sustainable businesses between 2025 and 2029, having met its previous €300 billion target a year ahead of schedule.
In addition to this $250 million investment in Alterra, the bank has so far invested about €300 million in climate funds focused on decarbonization, as part of its ongoing global climate strategy.
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