Discover ALTÉRRA’s Unexpected Gas Investment Amid Urgent Climate Promises

ALTÉRRA’s Controversial Investment Amid Climate Pledges

At last December’s COP28 in Dubai, leaders were taken aback as the UAE announced a $30 billion climate fund. This fund, dubbed ALTÉRRA, was introduced as the world’s largest private investment dedicated solely to climate solutions. However, only months after this ambitious declaration, questions arose about the fund’s true intentions.

ALTÉRRA’s focus on climate solutions was praised globally. COP28 President Sultan Al-Jaber called it a “defining moment” for climate finance. But, just four months later, a $300-million commitment from ALTÉRRA went towards acquiring a major fossil gas pipeline in North America, raising eyebrows and concerns among climate advocates.

March saw BlackRock’s “Global Infrastructure Fund IV” acquire half of the Portland Natural Gas Transmission System, a deal valued at $1.14 billion. This acquisition was not entirely unexpected for those familiar with the fund’s history, as BlackRock had previously indicated investments in high-pollution sectors.

Despite ALTÉRRA’s initial promises, there was no clear indication of whether the UAE firm knew about these potentially controversial investments. An ALTÉRRA spokesperson stated that their investments aim to support the transition to a clean energy ecosystem, but skepticism remains.

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Questionable Climate Commitments

BlackRock’s infrastructure fund has not solely focused on fossil fuels. Regulatory filings reveal investments in:

• Carbon capture projects
• Waste management services
• Telecom infrastructure

Despite these diverse investments, the fund’s involvement in fossil fuel infrastructure remains a significant concern. A spokesperson from BlackRock emphasized their focus on investments supporting decarbonization, decentralization, and digitalization.

Andreas Sieber of climate advocacy group 350.org voiced strong criticisms, stating that the ALTÉRRA fund is misusing green progress as a facade while funneling investments into fossil fuel projects. The findings have confirmed the worst fears of climate activists, highlighting the ongoing financial support for fossil fuel infrastructure.

During UN negotiations, climate finance remains a hot topic. With COP29 in Baku, Azerbaijan on the horizon, there are persistent calls for increased financial support to help poorer nations transition to clean energy.

ALTÉRRA’s initial commitment of $6.5 billion to funds managed by major investment firms, including BlackRock, has raised questions about the remaining $23.5 billion. The lack of transparency and details on future investments has led to skepticism among climate justice advocates.

BlackRock’s Dual Role in Climate and Fossil Fuels

BlackRock’s involvement in carbon capture through the Stratos project, a joint venture with Occidental, showcases an attempt to balance emissions by capturing and storing CO2. The project, located in Texas, aims to remove 500,000 tonnes of carbon dioxide annually, yet remains expensive and largely unproven at scale.

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Critics argue that such projects are more about greenwashing than genuine climate solutions. Occidental’s CEO has stated that their direct capture technology aims to sustain the oil industry for decades, raising concerns about the true motivations behind these investments.

BlackRock CEO Larry Fink highlighted the importance of American energy companies in climate technology innovation. However, Stratos’ critics question the authenticity of these green investments, viewing them as a strategy to continue fossil fuel operations under the guise of climate action.

As BlackRock’s infrastructure fund continues to invest in the Global North, ALTÉRRA’s promised investments in developing countries are still materializing. The focus remains on clean energy and transition assets in emerging economies, but the effectiveness and transparency of these efforts are under scrutiny.

The Call for Genuine Climate Finance

ALTÉRRA’s investment in fossil fuels has sparked calls for stricter safeguards. Climate activists demand that ALTÉRRA enforce stringent safeguards to ensure true climate progress and prevent further investments in fossil fuel projects.

Mohamed Adow from Power Shift Africa expressed concerns over ALTÉRRA’s investments, urging the fund to align its actions with the urgency of the climate crisis. The credibility of ALTÉRRA and the UAE is at stake as the world watches their next moves in climate finance.

With COP29 approaching, the role of Azerbaijan, a major oil and gas producer, comes into the spotlight. There are hopes for a new voluntary fund to support emissions reduction in developing countries, but skepticism remains about the effectiveness of such initiatives.

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Adow emphasized that developing countries need state-backed climate finance from rich nations through the UN climate process, not just voluntary schemes. Such funding is crucial for addressing the needs of the most vulnerable communities affected by climate change, ensuring that financial support reaches where it’s needed most.