UAE-backed climate investment platform ALTÉRRA has announced plans to establish a new $1.2 billion climate-focused co-investment fund, marking a significant expansion of its efforts to mobilize private capital for the energy transition. The proposed vehicle will launch with Spain-based lender BBVA as a strategic limited partner, anchoring the fund with a $250 million commitment, subject to regulatory approvals.

Building on a Large-Scale Climate Capital Mandate

ALTÉRRA was created in late 2023 with a $30 billion commitment from the UAE and an ambition to mobilize up to $250 billion in climate investments by 2030. Its mandate is centered on directing private capital toward climate mitigation and resilience projects, with a particular emphasis on improving access to finance in emerging markets. At inception, the platform established ALTÉRRA Acceleration, a $25 billion vehicle designed to act as an anchor and co-investor alongside institutional capital.

The newly proposed fund represents a structural evolution of that strategy. Existing co-investments made through ALTÉRRA Acceleration are expected to be consolidated into a dedicated opportunity fund, managed directly by ALTÉRRA, providing a more focused and scalable structure for future deployments.

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Investment Focus Across Sectors and Regions

The planned fund will target climate-aligned opportunities across infrastructure, private equity, and private credit. Priority themes include the energy transition, industrial decarbonization, climate technology, and sustainable living solutions. Geographically, the strategy is designed to be global in scope, with investments planned across North America, Europe, Latin America, and other growth markets where climate-related capital needs are accelerating.

This diversified approach reflects a broader shift in climate finance away from single-asset or single-region strategies toward multi-sector platforms capable of deploying capital across different stages of maturity and risk profiles.

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Strategic Alignment With BBVA’s Sustainable Finance Goals

For BBVA, the partnership supports the bank’s expanding sustainable finance strategy and its growing interest in the Middle East as a climate finance hub. In 2025, the bank set a target to channel €700 billion in sustainable finance between 2025 and 2029, with a focus on climate action and natural capital themes such as water, agriculture, and the circular economy, alongside social initiatives.

By acting as a cornerstone investor in the new fund, BBVA is positioning itself to gain exposure to a pipeline of climate investments while reinforcing its stated ambition to make sustainability a driver of long-term growth and international expansion.

Positioning for the Next Phase of Climate Capital Deployment

According to ALTÉRRA, the opportunity fund is intended to deepen its ability to mobilize and deploy global capital at scale, moving the platform into its next phase of growth. The partnership with BBVA is framed as a step toward strengthening cross-border collaboration in clean energy, sustainable infrastructure, and climate-related technologies.

If approved and launched as planned, the $1.2 billion fund would add to a growing ecosystem of large, sovereign-backed climate investment vehicles seeking to crowd in private capital. Its success will likely be judged not only by capital raised, but by how effectively it converts institutional commitments into deployed assets that deliver measurable climate impact alongside long-term financial returns.

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