As world leaders gathered in Dubai at the start of COP28 last December, the United Arab Emirates dropped a surprise headline-grabbing announcement. The host nation of the UN talks promised to put $30 billion into a new climate fund aimed at speeding up the energy transition and building climate resilience, especially in the Global South.
ALTÉRRA was billed as the world’s largest private investment vehicle to “focus entirely on climate solutions”. COP28 President Sultan Al-Jaber hailed its launch as “a defining moment” for creating a new era of international climate finance.
Yet four months later, one of the initial funds ALTÉRRA backed with a $300-million commitment agreed to buy a major fossil gas pipeline in North America, Climate Home has discovered.
In March, BlackRock’s “Global Infrastructure Fund IV” acquired half of the 475 km-long Portland Natural Gas Transmission System, with Morgan Stanley taking the rest in a deal worth $1.14 billion overall.
That acquisition would not have come as a surprise to the fund’s investors.
When US-based BlackRock pitched it to the State of Connecticut’s Investment Advisory Council back in 2022, the world’s biggest asset manager gave a flavour of where their money would likely end up. Its presentation – seen by Climate Home – featured a list of “indicative investments” including highly-polluting sectors such as gas power plants and transportation networks, liquefied natural gas (LNG), airports, terminals and shipping.
Climate Home does not know whether ALTÉRRA saw the same presentation, nor did the UAE firm respond directly to a question asking if it was aware before the COP28 announcement that the BlackRock fund might invest in those sectors.
An ALTÉRRA spokesperson told Climate Home its “investments seek to build the energy systems of tomorrow, while supporting the transition of existing energy infrastructure towards a just and managed clean energy ecosystem”.
In addition to the gas pipeline, BlackRock’s infrastructure fund has so far invested in carbon capture, waste management, utilities maintenance services, telecom infrastructure, data centres and the production of industrial gases, according to regulatory filings, a BlackRock job advertisement and press reports accessed by Climate Home.
A BlackRock spokesperson said its global infrastructure fund franchise “targets investments in solutions across the energy transition value chain, driven by the long-term trends of decarbonization, decentralization, and digitalization to support the stability and affordability of energy supply around the world”.
Andreas Sieber, associate director of global policy and campaigns at climate advocacy group 350.org, said Climate Home’s findings “confirm our worst fears”. “The ALTÉRRA fund uses a masquerade of green progress while funnelling investment into fossil fuel pipelines and gas projects, which are the biggest causes of the climate crisis,” he told Climate Home.
Climate finance is a hot topic at UN negotiations, with countries expected to set a new global goal at COP29 in Baku, Azerbaijan, this November, amid persistent calls for higher amounts to help poorer nations boost clean energy production.
The COP28 presidency said last year that ALTÉRRA would “drive forward international efforts to create a fairer climate finance system, with an emphasis on improving access to funding for the Global South”. Al-Jaber added that “its launch reflects… the UAE’s efforts to make climate finance available, accessible and affordable”.
But the sparse details provided at the time prompted climate justice activists to question the real impact it would have in countries that most need financial support to adopt clean energy and adapt to a warming world. Only about a sixth of the fund – $5 billion – was earmarked as “capital to incentivize investment into the Global South”.
Follow the money
ALTÉRRA is a so-called ‘fund of funds’. Instead of directly investing money in individual companies or assets, it puts its cash into a series of funds run by other investment firms. At COP28, it committed a total of $6.5 billion to funds managed by BlackRock, Brookfield and TPG, without setting out how the remaining $23.5 billion would be spent.
Since then, ALTÉRRA has not announced any further investments. Its chief executive, Majid Al Suwaidi, told Bloomberg this month that the fund is “actively planning the next phase of allocations”, without giving further details.
The launch of #ALTÉRRA marks the start of three unique alliances with global asset managers, @Brookfield, @BlackRock, and @tpg.
Together, we share the same vision, to bridge the climate investment gap and finance a new climate economy. pic.twitter.com/7yEXOyZqpK
— ALTÉRRA (@Alterrafund) December 1, 2023
Most of the funds picked by ALTÉRRA remain at an early stage and have yet to announce completed transactions or are still trying to raise more capital from investors. The most notable exception is BlackRock’s fourth Global Infrastructure Fund. By the time it won the $300-million commitment from ALTÉRRA in Dubai, the vehicle was ready to deploy its money.
ALTÉRRA told Climate Home its investment in the BlackRock vehicle is in line with its goals of getting climate finance “flowing quickly and at scale” and of partnering “with funds that invest in the energy transition and accelerate pathways to net-zero”.
Announcing its first $4.5-billion closing in October 2022, BlackRock said the fund would “continue to target investments in climate solutions, while also supporting the infrastructure needed to ensure a stable, affordable energy supply during the transition”.
In private conversations with potential investors, the asset manager spelled out more clearly what that meant.
Its presentation to the State of Connecticut in December 2022 showed that the fund would not only invest in things like renewable energy, electrification and battery storage, but also in fossil gas power plants and pipelines, LNG and transportation infrastructure like airports, shipping and terminals.
A slide from BlackRock’s presentation of the Global Infrastructure Fund IV to investors
In line with this strategy, BlackRock agreed a deal this March for its Global Infrastructure Fund IV to acquire half of the Portland Natural Gas Transmission System (PNGT), a fossil gas pipeline stretching from the Canadian border across New England in the United States to Maine and Massachusetts.
When it began operations in 1999, the pipeline helped shift New England’s power generation away from coal and oil, but it has also created a stronger dependency on fossil gas, leaving citizens vulnerable to price spikes. The region is now planning to accelerate the rollout of renewable energy sources.
The PNGT was not the first fossil fuel infrastructure the BlackRock team behind the Global Infrastructure Fund had snapped up. In a written testimony submitted this March to the State of New Hampshire, a senior executive listed a dozen oil and gas pipelines backed by earlier rounds of the fund. They included one operated by ADNOC, the UAE state-owned oil company whose CEO is Sultan Al-Jaber, COP28 president and chair of ALTÉRRA’s board.
Responding to Climate Home’s findings on where ALTÉRRA’s money is going, Mohamed Adow, director of Nairobi-based think-tank Power Shift Africa, said it is “extremely concerning to see a fund hailed by a COP president as a solution to the climate crisis investing in fossil fuels”.
“This needs to be a wake-up call to the world that these funds created by COP hosts are little more than PR stunts designed to greenwash the activities of fossil fuel-producing nations,” he added.
Oil-backed carbon capture
BlackRock does not disclose the infrastructure fund’s complete portfolio, but it has invested another $550 million in Stratos, the world’s biggest direct air capture (DAC) project being developed in a joint venture with oil giant Occidental. The plant under construction in Texas promises to suck as much as 500,000 tonnes of carbon dioxide out of the atmosphere annually and bury it underground.
Its proponents see DAC as a key technology to balance out emissions in the race to achieve net zero by 2050, although so far it remains expensive and largely unproven at scale. Stratos won a grant from the US government to fast-track the construction of the facility, and it has struck deals to sell carbon offsets generated in future from the plant with corporate giants like Amazon.
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When the DAC partnership was announced last November, BlackRock CEO Larry Fink said Stratos “represents an incredible investment opportunity for BlackRock’s clients… and underscores the critical role of American energy companies in climate technology innovation”.
But Stratos’ critics have questioned Occidental’s motivations and dismissed its DAC investments as a greenwashing ploy to keep pumping oil and slow down the transition away from fossil fuels.
“We believe that our direct capture technology is going to be the technology that helps to preserve our industry over time,” Vicki Hollub, Occidental’s chief executive, told the CERAWeek energy industry conference last year. “This gives our industry a license to continue to operate for the 60, 70, 80 years that I think it’s going to be very much needed.”
Call for safeguards
While BlackRock’s infrastructure fund deploys its cash largely in the Global North, ALTÉRRA’s promised investments in developing countries are still taking shape.
Brookfield in June launched a new “Catalytic Transition Fund” backed by ALTÉRRA with a $1-billion commitment. The fund’s stated focus is “directing capital into clean energy and transition assets in emerging economies”.
Climate Home asked ALTÉRRA if it had adopted any exclusion policies that would, for example, rule out investment in certain types of fossil fuels.
The UAE fund did not respond to the question, but a spokesperson said its investment approach is aligned with the goal “of accelerating the climate transition, with a focus on clean energy, industry decarbonization, sustainable living, and climate technologies”.
Climate activists protest against fossil fuels during COP28 in Dubai in December 2023. REUTERS/Thomas Mukoya
350.org’s Sieber called on Al-Jaber – who was widely criticised by green groups for his dual role as president of COP28 and head of a fossil fuel corporation – to “act swiftly to enforce stringent safeguards” for ALTÉRRA’s investments.
“The UAE is on the brink of losing the little credibility it still has left in addressing the urgency of the climate emergency,” Sieber added. “The world, especially communities who are being hit the hardest by climate impacts every day, cannot afford to have one more cent invested in fossil fuels.”
The key question now is whether Azerbaijan – the host of COP29 and itself a substantial producer and exporter of oil and gas – will do things differently. Last week, it announced a new voluntary fund that it said will invest at least $1 billion for emissions reduction projects in developing countries. Baku is hoping to secure contributions for it from fossil-fuel producing nations and companies.
Power Shift Africa’s Adow said developing countries need state-backed climate finance from rich nations, negotiated through the UN climate process, and “not just cooked up in voluntary schemes”. That funding “can be used where the need is greatest, not just where it might make most money for some private profit-seeking businesses,” he added.
(Reporting by Matteo Civillini; fact-checking by Sebastián Rodríguez; editing by Megan Rowling and Sebastián Rodríguez)
The post UAE’s ALTÉRRA invests in fund backing fossil gas despite “climate solutions” pledge appeared first on Climate Home News.
UAE’s ALTÉRRA invests in fund backing fossil gas despite “climate solutions” pledge
It’s been less than 20 years since baby food in plastic pouches first appeared on supermarket shelves. Since then, these convenient and popular “squeeze-and-suck” products have become the dominant packaging for baby food, transforming the way that millions of babies are fed around the world. But emerging evidence raises concerns that big food brands are feeding our children plastic pollution with unknown consequences, by selling baby food in flexible plastic packaging.
Testing commissioned by Greenpeace International in 2025 found plastic particles in the baby food products of two global consumer goods companies – Danone and Nestlé. The study suggests a link between the type of plastic the pouches are lined with – polyethylene – and some of the microplastics found. Tests also suggest a range of plastic-associated chemicals in the packaging and food of both products.
Sign the petition for a strong Global Plastics Treaty
Governments around the world are now negotiating a Global Plastics Treaty – an agreement that could solve the planetary crisis brought by runaway plastic production. Let’s end the age of plastic – sign the petition for a strong Global Plastics Treaty now.
Climate Change
U.N. General Assembly Embraces Court Opinion That Says Nations Have a Legal Obligation to Take Climate Action
The U.S. was among eight countries that voted against endorsing the nonbinding ruling that said all nations must take steps to limit temperature rise to 1.5 degrees Celsius.
The United Nations General Assembly on Wednesday voted overwhelmingly in favor of a climate justice resolution championed by the small Pacific Island nation of Vanuatu. The resolution welcomes the historic advisory opinion on climate change issued by the International Court of Justice in July 2025 and calls upon U.N. member states to act upon the court’s unanimous guidance, which clarified that addressing the climate crisis is not optional but rather is a legal duty under multiple sources of international law.
The number of new coal-fired power plants built around the world hit a “10-year high” in 2025, even as the global coal fleet generated less electricity, amid a “widening disconnect” in the sector.
That is according to the latest annual report from Global Energy Monitor (GEM), which finds that the world added nearly 100 gigawatts (GW) of new coal-power capacity in 2025, the equivalent of roughly 100 large coal plants.
It adds that 95% of the new coal plants were built in India and China.
Yet GEM says that the amount of electricity generated with coal fell by 0.6% in 2025 – with sharp drops in both China and India – as the fuel was displaced by record wind and solar output, among other factors.
The report notes that there have been previous dips in output from coal power and there could still be ups – as well as downs – in the near term.
For example, nearly 70% of the coal-fired units scheduled to retire globally in 2025 did not do so, due to postponements triggered by the 2022 energy crisis and policy shifts in the US.
However, GEM says that the underlying dynamics for coal power have now fundamentally shifted, as the cost of renewables has fallen and low usage hits coal profitability.
China and India dominate growth
In 2025, coal-capacity growth hit a 10-year high, with 97 gigawatts (GW) of new power plants being added, according to GEM.
(Capacity refers to the potential maximum power output, as measured in GW, whereas generation refers to power actually generated by the assets over a period of time, measured in gigawatt hours, GWh.)
This is the highest level since 2015 when 107GW began operating, as shown in the chart below. This makes 2025 the second-highest level of additions on record.
The majority of this growth came from China and India, which added 78GW and 10GW, respectively, against 9GW from all other countries.
Yet GEM points out that, even as coal capacity in China grew by 6%, the output from coal-fired power plants actually fell 1.2%. This means that each power plant would have been running less often, eroding its profitability. Similarly, capacity in India grew by 3.8%, while generation fell by 2.9%.
China and India had accounted for 87% of new coal-power capacity that came into operation in the first half of 2025. The shift up to 95% in the year as a whole highlights how increasingly just those two countries dominate the sector, GEM says.
Christine Shearer, project manager of GEM’s global coal plant tracker, said in a statement:
“In 2025, the world built more coal and used it less. Development has grown more concentrated, too – 95% of coal plant construction is now in China and India, and even they are building solar and wind fast enough to displace it.”
Both China and India saw solar and wind meet most or all of the growth in electricity demand last year.
Analysis for Carbon Brief last year showed that, in the first six months of 2025 alone, a record 212GW of solar was added in China, helping to make it the nation’s single-largest source of clean-power generation, for example.
However, the country continues to propose new coal plants. In 2025, a record 162GW of capacity was newly proposed for development or reactivated, according to GEM. This brought the overall capacity under development in the country to more than 500GW.
China’s 15th “five-year plan”, covering 2026-2030, had pledged to “promote the peaking” of coal use, while a more recent pair of policies introduced stricter controls on local governments’ coal use.
For its part, in India some 28GW of new coal capacity was newly proposed or reactivated last year, bringing the total under development to 107.3GW and under-construction capacity to 23.5GW.
The Indian government is planning to complete 85GW of new coal capacity in the next seven years, even as clean-energy expansion reaches levels that could cover all of the growth in electricity demand.
Outside of China and India, GEM says that just 32 countries have new coal plants under construction or under development, down from 38 in 2024.
Countries that have dropped plans for new coal in 2025 include South Korea, Brazil and Honduras, it says. GEM notes that the latter two mean that Latin America is now free from any new coal-power proposals.
This means that both electricity generation from coal and the construction of new coal-fired power plants are increasingly concentrated in just a few countries, as the chart below shows.
Indonesia’s coal fleet grew by 7% in 2025 to 61GW, with a quarter of the new capacity tied to nickel and aluminium processing, according to GEM.
Turkey – which is gearing up to host the COP31 international climate summit in November – has just one coal-plant proposal remaining, down from 70 in 2015.
The amount of new coal capacity that started to operate in south-east Asia fell for the third year in a row in 2025, according to GEM.
Countries in south Asia that rely on imported energy are increasingly looking to other technologies to protect themselves from fossil-fuel shocks, such as Pakistan, which is rapidly deploying solar, states the GEM report.
In Africa, plans for new coal capacity are concentrated in Zimbabwe and Zambia, the report shows, with the two countries accounting for two-thirds of planned development in the region.
‘Persistence of policies’
While new coal plants are still being built and even more are under development, GEM notes that the global electricity system is undergoing rapid changes.
Crucially, the growth of cheap renewable energy means that new coal plants do not automatically translate into higher electricity generation from coal.
Without rising output from coal power, building new plants simply results in the coal fleet running less often, further eroding its economics relative to wind and solar power.
Indeed, GEM notes that electricity generation from coal fell globally in 2025. Moreover, a recent report by thinktank Ember found that renewable energy overtook coal in 2025 to become the world’s largest source of electricity.
GEM notes that coal generation may fluctuate in the near term, in particular due to potential increases in demand driven by higher gas prices.
It adds that gas price shocks, such as the one triggered by the Iran war, can cause temporary reversals in the longer-term shift away from coal.
According to Carbon Brief analysis, at least eight countries announced plans to either increase their coal use or review plans to transition away from coal in the first month of the Iran war. However, a much-discussed “return to coal” is expected to be limited.
GEM’s report highlights that global fossil-fuel shocks can have an impact on the phase out of coal capacity over several years.
In the EU, for example, 69% of planned retirements did not take place in 2025, due to postponements that began in the 2022-23 energy crisis triggered by the Russian invasion of Ukraine, according to the report. Countries across the bloc chose to retain their coal capacity amid gas supply disruptions and concerns about energy security.
Yet coal-fired power generation in the bloc is now more than 40% below 2022 levels. Again, this highlights that coal capacity does not necessarily translate into electricity generation from coal, with its associated CO2 emissions.
Overall, GEM notes that “repeated exposure to fossil-fuel price volatility is as likely to accelerate the shift toward clean energy as it is to delay it”.
GEM’s Shearer says in a statement:
“The central challenge heading into 2026 is not the availability of alternatives, but the persistence of policies that treat coal as necessary even as power systems move increasingly beyond it.”
In the US, 59% of planned retirements in 2025 did not happen, according to GEM. This was due to government intervention to keep ageing coal plants online.
Five coal-power plants have been told to remain online through federal “emergency” orders, for example, even as the coal fleet continues to face declining competitiveness.
Keeping these plants online has cost hundreds of millions of dollars and helped drive an annual increase in the average US household electricity prices of 7%, according to GEM.
Despite such measures, Trump has overseen a larger fall in coal-fired power capacity than any other US president, according to Carbon Brief analysis.
Meanwhile, according to new figures from the US Energy Information Administration, solar and wind both set new records for energy production in 2025.
Despite challenges with policy and wider fossil-fuel impacts, the underlying dynamic has shifted, says GEM, as “clean energy becomes more competitive and widely deployed” around the world.
It adds that this raises the prospect of “a more sustained decoupling between coal-capacity growth and generation, particularly if clean-energy deployment continues at current rates”.
The post New coal plants hit ‘10-year’ global high in 2025 – but power output still fell appeared first on Carbon Brief.
New coal plants hit ‘10-year’ global high in 2025 – but power output still fell
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U.N. General Assembly Embraces Court Opinion That Says Nations Have a Legal Obligation to Take Climate Action
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