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
Proposal for ‘Hyperscale’ data centre in remote Northern Territory demonstrates need for urgent moratorium
SYDNEY, Wednesday 1 July 2026 — The proposal for the ‘Project Ares’ data centre in remote Northern Territory, which would be powered by off-grid gas and renewables, has prompted renewed calls from Greenpeace for an urgent moratorium, citing serious concerns about emissions and environmental harm.
The application for the project under the EPBC Act reveals the gas-fired generation for the project would be approximately 1,038MW at full build-out, which would more than double the NT’s current gas-fired generating capacity.
A recent report by Greenpeace Australia Pacific and independent expert Ketan Joshi, Energy Vampires: the AI data centres draining Australia, revealed how the frenzied rollout of AI data centres in Australia is set to derail the renewable energy transition, entrench gas and turbocharge climate pollution.
Solaye Snider, Campaigner at Greenpeace Australia Pacific, said: “Proposals like Project Ares, which would have significant off-grid gas powered generation and emissions, should not be moving along while there are still zero binding regulations to limit the impacts of AI data centres on our communities and environment.
“This hyperscale project proposes massive new off-grid gas infrastructure, making a mockery of the Federal Government’s unenforceable ‘expectations’ that data centres will cover their own power use with renewables. Communities will pay the price for the data centre industry’s endless hunger for energy at any cost.
“This proposal also raises serious questions about where this new gas would come from. Could it come from fracking the Beetaloo? Communities deserve to have the full picture before this project is approved.
“The Australian Government is asleep at the wheel when it comes to the rapid roll-out of AI data centres. We need an urgent moratorium on the construction and approval of new data centres, so our government can take appropriate time to legislate the regulations and safeguards we so desperately need.”
-ENDS-
Media contact
Lucy Keller on 0491 135 308 or lucy.keller@greenpeace.org
Climate Change
Can giant batteries unlock Africa’s green industrial future?
When Tropical Storm Ana made landfall in Malawi in 2022, it hit the landlocked country’s electricity system hard, destroying a third of its hydropower capacity and causing nationwide system shutdowns.
Even before the storm, Malawi’s power supply – generated mostly from renewables including solar and hydro – had been unreliable for many years, suffering from persistent outages.
The Malawian government is now hoping to improve the stability of its grid power with the construction of a battery energy storage system (BESS) in its capital that will charge up with surplus electricity generated when the sun is shining and hydropower dams are running, and release it when needed.
More than 80% of Malawi’s electricity comes from renewables and the country has been expanding capacity by adding more solar power while decommissioning 78 megawatts (MW) of diesel generation. But climatic impacts such as cyclones disrupt the grid and threaten to reverse energy transition gains.
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To ensure a more stable supply, Malawi is building the 20 MW/30 megawatt hour (MWh) battery storage system in Lilongwe with support from the Global Energy Alliance (GEA), under Mission 300 – an initiative led by development banks and their partners to connect 300 million Africans to electricity by 2030.
The project in Malawi aims to stabilise the country’s grid, smooth its intermittent power supply, and reduce its reliance on diesel generators, as well as averting about 10,000 tonnes of carbon emissions per year.
Battery energy storage systems act like giant power banks, absorbing clean electricity during periods of lower demand and releasing it for use when demand is high or generation drops. A typical BESS includes battery packs, inverters that allow electricity to flow between the batteries and the grid, transformers, and cooling and safety systems.
Damola Omole, director of the ‘Grids of the Future, Africa’ programme at the GEA, a philanthropic organisation, said BESS offers the “flexibility needed to smoothly integrate high levels of variable renewables” into the power grid. In doing so, it can reduce reliance on expensive diesel generation and protect consumers and industries from rising energy costs, he added.
Can BESS drive Africa’s industrialisation?
As calls to develop local green industries grow louder in Africa, Omole said there is a need to prioritise upgrading national grids with BESS so they can “transmit reliable, cost-reflective power directly to commercial clusters”.
While financiers previously doubted that intermittent solar and wind could meet the needs of industrial production, utility-scale BESS has demonstrated that renewables can deliver “predictable, steady output just like traditional fossil-fuel baseload power”, he added.

In recent years, African leaders, including William Ruto of Kenya, Felix Tshisekedi of the Democratic Republic of Congo (DRC) and Emmerson Mnangagwa of Zimbabwe, have called for the continent to use the energy transition to drive green industrialisation and create value from its resources at home.
At a mining investment conference in Nairobi in April, Ruto said Africa had stayed at the bottom of the value chain for too long but would now collaborate to process its minerals within the continent. “We will refine them here and we will manufacture them here,” he told African ministers and business executives.
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However, deploying energy at scale to advance this industrial ambition has long been a problem, while about 600 million Africans still lack access to electricity. BESS could therefore become a critical technology in the continent’s development drive, experts say.
Michael Iwu, West Africa business development manager at Empower New Energy, which finances and co-develops renewable energy, said BESS is challenging the narrative that solar and wind power alone cannot provide enough reliable electricity to run factories and other energy-intensive industries. Modern battery systems can now support business operations for several hours, helping maintain production during grid outages, he added.
For GEA’s Omole, the key question has shifted to how quickly countries can build the battery storage, grid infrastructure and market frameworks needed to unlock the potential of renewables.
BESS to help renewables displace fossil fuels
While BESS is still in its initial stages of deployment in Africa, interest is growing as countries look for ways to make renewable energy more reliable.
South Africa is leading with the largest and first of its kind utility-scale BESS on the continent. With the capacity to discharge up to five uninterrupted hours of power, the system is keeping homes and businesses running in Worcester, a southwestern town of more than 100,000 people.
Egypt is also investing heavily in battery storage. In 2025, the country launched its first utility-scale BESS, a 300-MWh facility integrated with a 500 MW solar plant in the southern city of Aswan. It has also committed more than $1 billion to strengthen its electricity grid and update regulation to support battery storage projects.
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Falling battery prices are helping drive the rapid deployment of energy storage. According to BloombergNEF, battery packs for stationary storage (used in BESS) cost an average of $70 per kilowatt-hour in 2025, down 45% from 2024.
Soon the role of BESS in supporting the grid integration of wind and solar could reduce reliance on fossil fuels and help the world meet ambitious climate goals, according to a GEA report released in April.
Stephen Nicholls, director of South-Africa based energy think-tank African Energy Futures, said the rapid pace of technological development and the falling costs of BESS are attracting growing attention.
He said improvements in storage duration could further strengthen the role of renewables in industrial power systems. While most commercial and utility-scale battery systems currently provide around four to eight hours of storage, Nicholls said researchers are developing units capable of storing electricity for extended periods.
“The cheaper the storage and the longer the storage, the more [BESS] will replace fossil fuels like gas,” he added.


Limited awareness and data
However, significant obstacles to BESS deployment still stand in the way of its massive potential. Iwu of Empower New Energy said limited awareness of utility-scale BESS, as well as concerns about financing and a lack of long-term performance data continue to slow investment across Africa.
Governments and developers need to build more pilot projects and demonstration sites to generate evidence of the technology’s value and benefits and boost confidence among investors and policymakers, he added. To scale BESS, we need to “keep amassing this [evidence] data and keep talking about it and exploring it,” Iwu said.
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To help address those barriers, Omole said a BESS Consortium under the Global Energy Alliance is working with governments, development banks and other technical partners to de-risk the sector for private financiers by generating evidence from early projects, mobilising public finance to attract private capital, and introducing policies that make battery storage commercially viable.
“This coordinated action helps African nations bypass legacy infrastructure constraints, integrate massive volumes of clean energy, and secure the reliable power required for large-scale industrialisation,” Omole explained.
The post Can giant batteries unlock Africa’s green industrial future? appeared first on Climate Home News.
Can giant batteries unlock Africa’s green industrial future?
Climate Change
With extreme heat now a public health crisis, local data can save lives
Eric Mackres is senior manager of urban analytics for the WRI Ross Center for Sustainable Cities and attended London Climate Action Week during the June 2026 heatwave. Usama Bilal is an associate professor of epidemiology and co-director of the Urban Health Collaborative at Drexel University.
As thousands gathered in London for one of the year’s largest climate gatherings last week, Western Europe faced its most severe heatwave ever recorded. The irony was not lost.
Across Europe, over a dozen countries issued urgent heat warnings and Spain registered significant deaths. In London, where air conditioning is rare in buildings and on trains and buses, temperatures soared past 36 degrees Celsius (97F) and schools closed early. The mayor announced the city’s first heat action plan – an important step.
Extreme heat is now a public health crisis for many of the world’s cities, as the urban heat island effect intensifies dangerous temperatures – and it’s growing worse. Around 500,000 people die from extreme heat every year. As global temperatures rise, and with a severe El Niño getting underway, even more people will die and be hospitalised unless cities act soon.
But most cities are still taking a far too one-sized-fits-all approach to tackling heat, looking only at temperatures and not its local effects on people and their health.
People experience heat differently
How extreme heat affects people’s health can vary widely across a country and city, depending on their environment and demographics. Cities can save far more lives and prevent more hospitalisations by taking a tailored approach, using data to understand who’s most vulnerable and directing solutions toward them.
The good news: better data now exists that enable cities to pinpoint who’s most at risk. And that data can inform customised adaptation strategies to save lives. Indeed, the future of cities will hinge on their ability to deliver solutions to extreme heat tailored to at-risk people and neighborhoods.
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First, cities should start by measuring heat’s risks to people’s health locally. Our work in Brazil and across Latin America shows big differences in what temperatures are dangerous and how quickly risks escalate at higher temperatures. These variations exist between cities, between demographic groups and between neighbourhoods.
But it’s not as simple as finding the hottest places. In temperate Porto Alegre, in southern Brazil, a person’s risk of death increases by 25% at temperatures of 27 degrees Celsius (81F). In tropical Teresina, in northern Brazil, which is hot year-round, the same temperature does not elevate the risk of death. At 32 degrees Celsius (90F), a person’s risk of death increases by a milder 10%.
These differences also exist within cities where the climate is the same. Elderly people, the very young, lower-income communities and those without air-conditioning and shaded green spaces are all more likely to get sick, be hospitalised, or die from heat. Areas with more trees and green spaces usually have lower temperatures, and therefore lower impacts of heat.
Targeted heat alerts
Second, cities can use this data to develop early warning systems and outreach campaigns that give people more targeted heat alerts. Research in the UK found that the elderly, despite being among the most at-risk, often were unable to heed warnings during the 2022 heatwave. Well-designed heat warning systems and city responses strengthen people’s trust in health services. They can change people’s behaviours and better prepare municipal services, helping reduce illness, hospital visits and deaths.
Rio de Janeiro adopted a heat alert system in 2024 with five alert levels based on past heatwaves’ impacts on health and forecasts of when temperature and humidity will hit those dangerous levels again. The alert levels activate services like cooling centres, extra public drinking water, and changes to outdoor events. When a heatwave struck during Carnival in 2025, the city was able to deploy resources to protect and warn people while still allowing events to go on.
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Finally, cities should use local heat data to target cooling solutions to where they can help people the most. Solutions like tree cover, shade structures and cool roofs lower temperatures and can provide targeted relief for the most vulnerable people, like outdoor workers and those who travel by foot, bike or public transit.
In Florianópolis, Brazil, we helped the local government use heat impact modeling to design a green corridor and urban forestry project that will reduce pedestrians’ heat stress up to 7 degrees C. In Hermosillo, Mexico, our researchers worked with the city and found that certain neighbourhoods could feel up to 14 degrees C hotter than the shaded city center. A park is now under construction that will bring better shade and heat relief to one of the city’s most at-risk areas.


Connecting health and climate planning
Momentum to address extreme heat in cities is growing, from both national and local governments. At last year’s UN climate summit in Brazil, the Belém Health Action Plan saw 30 national health ministries commit to build climate-resilient health systems based on local data and evidence-based policies.
And over 160 local governments joined the Beat the Heat initiative, committing to develop urban heat action plans and deliver passive cooling projects to reduce health risks.
But there’s still a disconnect between health, urban and climate officials. Only 23% of World Meteorological Organization member countries integrate weather information into health surveillance systems. Heat-health impact models, though increasingly easy to scale, are not yet built for every city. Some cities still need to collect local data for specific demographics and neighbourhoods – and many need support.
National and local governments will need to partner on this tailored approach. It will require integrating local heat and health data into public health systems, city planning, infrastructure, and disaster preparedness.
We have the data to know who will be most impacted by extreme heat when – and the solutions to keep people alive and out of the hospital. It’s time for governments to use them.
The post With extreme heat now a public health crisis, local data can save lives appeared first on Climate Home News.
With extreme heat now a public health crisis, local data can save lives
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