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.
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
Climate Change
“Next year is too late for regulations”: Beetaloo Energy’s 2GW gas-powered AI data centre a “disaster proposal” destined to cause climate chaos
SYDNEY, Wednesday 22 July 2026 — Beetaloo Energy has secured land from the NT Government for a massive $40 billion “hyperscale” AI data centre near Darwin, which would be powered by 2 gigawatts (GW) of gas power fracked directly from the Beetaloo basin, prompting calls from Greenpeace for urgent federal legislation.
The proposal marks a dangerous escalation in the AI data centre industry’s expansion, which threatens to entrench fossil fuel infrastructure for decades and put immense pressure on the region’s fragile water resources — while continuing to be unregulated.
Joe Rafalowicz, Head of Climate and Energy at Greenpeace Australia Pacific, said: “This disaster proposal for a 2GW gas-powered AI data centre in the NT is a shocking example of the unchecked expansion of hyperscale data centres in Australia. It is also, critically, more evidence for the urgent need for a moratorium on all new data centres until strong, binding regulations are put in place to protect our communities and climate.
“This proposal mirrors the frenzied, unchecked expansion currently wreaking havoc on communities in the US. We are seeing cowboy data centre operators treat Australia like a playground, steam-rolling ahead with projects that would lock down precious water resources and spike emissions, despite the overwhelming community opposition.
“Every day, more councils, communities and environmental groups are joining Greenpeace’s call for a moratorium on data centres, yet as of today there is still no system of safeguards or rules in place to regulate these companies.
“While Beetaloo Energy and the NT Government prepare to bulldoze ahead with this climate and water disaster, the Prime Minister is asleep at the wheel, promising to legislate a vague set of standards next year.
“Next year is too late, and anything less than mandating data centres cover their own energy demand, and then some, with new renewable energy is not enough.”
-ENDS-
Media contact
Lucy Keller on 0491 135 308 or lucy.keller@greenpeace.org
Climate Change
Allegations of harms at China-backed transition minerals projects rise
Reports of human rights and environmental abuses linked to Chinese companies’ overseas investments in the mining and refining of minerals needed for the clean energy transition are on the rise, research by a monitoring group has found.
The number of recorded allegations of harm at projects tied to Chinese firms have increased every year since 2021, rising to 148 in 2025, according to the Business and Human Rights Centre (BHRC). On Wednesday it released new data showing that a total of 434 allegations of abuse were made against Chinese-backed projects over the five-year period in projects across the world.
The world’s top cleantech manufacturer, China is also the leading financier of critical minerals projects worldwide. The country has committed more than $120 billion in foreign direct investment into mineral mining and processing since 2023, Australian think-tank Climate Energy Finance recently found.
“China plays a central role in global transition mineral supply chains, and as such has a unique opportunity to raise the bar on human rights and community engagement at every stage of mining,” said Michael Clements, BHRC’s executive director.
“While there have been encouraging developments, from stronger regulations to more company engagement, there remains a gap between human rights commitment and action,” he said.
The report comes as communities affected by Chinese-backed mineral projects have filed the first two cases to a Beijing-based mediation mechanism intended to bring willing Chinese companies to the discussion table with affected communities.
Allegations of harms on the rise
BHRC’s latest analysis – including data for the period 2023-2025 – covered mining, smelting and refining projects for 11 minerals considered key to manufacturing clean energy technologies such as batteries, EVs and solar panels needed to move away from climate-heating fossil fuels.
The highest number of abuses was recorded in Indonesia, the world’s largest producer of nickel, which is used to make EV batteries. After the Indonesian government banned exports of raw nickel, Chinese firms invested billions of dollars to develop a large-scale nickel smelting and processing industry in the Southeast Asian country, largely powered by coal.
Other countries with a high number of recorded harms include the Democratic Republic of Congo, where Chinese firms dominate cobalt and copper production; Myanmar, where unregulated rare earths mining has caused widespread environmental destruction; Serbia, where Chinese-backed mining of some of Europe’s most significant copper and gold deposits is swallowing land and homes, and Zimbabwe, where Chinese investments have turned the nation into Africa’s top lithium producer.
Growing risks for people and nature
Allegations tracked by BHRC included negative impacts on local livelihoods, health and land rights, workers’ health and safety and work-related deaths, as well as water pollution and environmental contamination. In addition, 18 people were attacked for raising concerns about Chinese transition mineral projects between 2023 and 2025.
The report shows that 10 Chinese companies, including Zijin Mining, Tsingshan Group and Zhejiang Huayou Cobalt, accounted for nearly two-thirds of all allegations recorded in the last five years. It found that some Chinese companies “still appear to turn a blind eye to these issues” but noted that several others have been more responsive to allegations of abuse. However, even among companies with human rights policies, implementation remains a challenge, BHRC warned.
Zijin Mining and Zhejiang Huayou Cobalt repeatedly responded to the allegations of harm by saying they take environmental and social risks seriously and adhere to international standards. Tsingshan Group never responded to BHRC’s requests for comment.
Platform for dialogue between communities and Chinese firms
At the same time, Chinese authorities have made “significant progress” on introducing a more specific framework for managing environmental and social risks in overseas investment, BHRC said.
This includes global consultation on a draft Sustainable Mining Code, adherence to UN guiding principles on business and human rights, and greater emphasis on oversight of companies operating overseas.
The China Chamber of Commerce of Metals, Minerals & Chemicals Importers & Exporters (CCCMC) set up a mediation and consultation mechanism intended to provide a platform for dialogue between affected communities or civil society groups that have raised concerns and Chinese companies.
More than three years since its launch, the mechanism has now received its first two complaints from local communities and many more are considering filing a case, Margaux Day, executive director at the nonprofit Accountability Counsel, told an event hosted by Climate Home News last month.
“This is incredibly exciting in that it fills a governance and accountability gap where often communities who are seeking to protect their rights and the environment can’t reach someone who will respond to them,” she told the panel discussion at London Climate Action Week.
Climate Home News understands that the complaints were filed by communities in Latin America and Southeast Asia over labour rights and resettlement issues. No information about the cases has yet been made public. The mechanism’s secretariat did not respond to Climate Home News’ questions.
The mechanism was set up after the Chinese regulator for banks and insurers called on investor-level institutions to establish complaints bodies to hear from communities outside of China. But whether the new initiative will prove effective in tackling grievances remains an open question.
“Real potential” for better mining practices
Participation in the mechanism is voluntary for Chinese firms and it doesn’t have a fact-finding function, nor can it impose provisions for compensation or compliance with human rights standards.
But Day told Climate Home News that, if successful, it could bring companies to negotiate an outcome that is better for people and the planet and leads to more sustainable mining practice.
Chen Yu, an independent China advisor for campaign group Global Witness, agreed that the mechanism holds “real potential”.
“There exists nothing else at a similar level to promote dialogue between communities and Chinese mining companies in particular,” she said.
For companies, the mechanism opens “a channel for problem-solving and dialogue with communities”, she added, as “Chinese companies often remain cautious of approaching affected communities directly, afraid of making the problem bigger”.
However, Chen said the mechanism remains at an early stage of development, faces resourcing challenges and is not yet sufficiently understood by communities in mining areas or Chinese firms.
To help it address some of these challenges, the secretariat is currently seeking technical support from a range of organisations, including civil society groups. But, Chen said, “it will take time for the mechanism to show its value”.
The post Allegations of harms at China-backed transition minerals projects rise appeared first on Climate Home News.
Allegations of harms at China-backed transition minerals projects rise
Climate Change
Energy transition policymaking must evolve to fit an age of rupture
Andreas Sieber is head of political strategy at 350.0g. Cat Abreu is director of the International Climate Politics Hub.
From the US abduction of Venezuela’s president at the start of this year to the Iran war which rumbles on, disruption is the new normal for global geopolitics, more often than not linked to conflict over supplies of oil and gas.
Events so far in 2026 – driven largely by the desire of the Trump administration to grab control of fossil fuels around the world – show that the climate community’s approach to energy diplomacy will have to evolve if we are to operate effectively and push for climate action in such a volatile landscape.
Today’s climate and energy governance must be able to cope with trade wars, genocide, fascism, spiralling inequality and challenges to multilateralism. The increasingly dominant paradigms of economic competitiveness, energy security and green industrialisation can help drive the transition but they also challenge our collective mission to deliver an equitable green shift.
US-China rivalry dominates
Longer-term geopolitical trends that are seeing power move from West to East and North to South have fuelled a US–China “superpower rivalry”, which is pulling the global economy apart and reining in trade.
A key question will be how the fracture “lines” are drawn: by the US and China, or also by other countries or blocs? Many governments will try to remain “in the middle” between the two giants to capture economic gains from both sides. Yet despite the language of “strategic autonomy”, Washington and Beijing may be in a position to force choices via market access, export controls and sanctions.
At first glance, this may not seem particularly relevant for climate and energy politics. But Huawei’s exclusion from 5G operations across the political West and India following the so-called Clean Network Campaign by the US government serves as a warning of what could happen to climate green tech.
And the recent debate to cut out Chinese inverters from European markets follows the same pattern – US security forces perceive a risk and start encouraging their allies to drop Chinese technology.
The new drivers: competition and security
Despite this fracturing geopolitical and economic context, energy transition is still happening. To ensure it is effective and equitable, we need to understand what is driving it and how to adapt climate politics so that it better responds to these drivers.
Put simply, China is supplying the world with low-cost renewables (roughly 60% of critical wind and 80% of solar components), batteries, EVs and other key elements. Other countries now also want their piece of the green tech pie and are forming industrial policies to get it.
It is this new competitiveness-driven logic that will shape the quest for decarbonisation, which has shifted from cooperating around the cost of tackling climate change to rivalry for the benefits of climate action.
Over 90% of new renewables projects are now cheaper than fossil alternatives. Gas-fired power is 3–4 times more expensive than solar and wind. In 2015, most decarbonisation policies were “traditional” emissions-cutting strategies like carbon pricing or net zero dates, whereas green industrial policies now underpin the majority.
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Meanwhile, security has become a central driver of energy politics. We are living through the second major fossil fuel crisis in just four years. Elevated oil and gas prices will impose up to $1 trillion in additional costs on the global economy by the end of the year if disruption continues in the Strait of Hormuz. Fossil fuel supply chains have exposed countries to conflict, coercion and brutal price shocks.
Fossil fuel volatility destabilises whole economies – higher fuel costs drive up food prices, increase political instability, and push millions into poverty and hunger. This incentivises governments to shield themselves from global shocks, especially in countries that are net fossil fuel importers and home to roughly three-quarters of the world’s population.
Yet security fears can cut both ways. The same instability that makes fossil fuel dependence untenable is also sharpening concern over China’s dominance of critical clean technologies and supply chains.
Equity, cooperation and the opportunity for change
Developing countries benefit from the rapid uptake of renewables enabled by low-cost Chinese technologies. But significant fiscal space and public investment is needed for the electricity grids and infrastructure required to fully unleash the energy transition, as well as for green industrialisation to diversify revenue streams.
Despite this, industrial-scale domestic production and ownership often remain out of reach for too many countries that lack the fiscal space to allow green supply chains to flourish and compete with their traditional industrial base. But more just and diversified green tech supply chains could be achieved with concomitant support.
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For the first time in decades, the international order is being substantially reshaped. If within this context, decarbonisation is increasingly driven by green industrial policy, energy security and competitiveness, the climate policy community must better anticipate where these debates are moving. We must speak the same language, and enter the forums where decisions are made, including security, trade and bilateral or trilateral spaces.
We should build on an enlightened self interest recognising that cooperation remains essential and beneficial. This includes using the UN climate process differently: less as an ever-expanding negotiation machine, and more as a space for norm-setting, political alignment and deal-making. In an age of fragmentation, effective cooperation must not only be framed as necessary but thought of as a strategically compelling source of resilience and shared advantage.
The post Energy transition policymaking must evolve to fit an age of rupture appeared first on Climate Home News.
Energy transition policymaking must evolve to fit an age of rupture
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