UAE set to announce $30 billion climate finance fund at COP28

The United Arab Emirates is preparing to announce a new $30 billion climate-focused investment fund during COP28 with backing from some of the world's biggest investors including BlackRock, three sources with knowledge of the matter told Reuters.

The sources said the UAE would provide the bulk of the money and private equity firm TPG and infrastructure investor Brookfield would also be involved. Two sources said the money would be overseen by UAE-backed investor Lunate Capital.

The news was reported earlier on Thursday by the Financial Times.

One source said Lunate would seek to raise and deploy additional capital in climate-related investments.

A second source said BlackRock, TPG and Brookfield would allocate money currently housed in other funds to the UAE fund and that talks over the fund began after the summer and carried on through October.

BlackRock, Brookfield and TPG declined to comment. Lunate was not immediately available to comment. A spokesperson for the COP28 Presidency was not immediately available to comment.

As hosts of the COP28 climate conference in Dubai that kicked off on Thursday, the UAE has drawn criticism for its plans to expand oil and gas production as the world struggles to rein in the climate-damaging carbon emissions they produce.

Against that backdrop, the UAE has been keen to encourage finance and business more broadly to commit more money to the climate fight and was expected to open its own chequebook throughout the two-week event.