Daily Current Affairs : 4-December-2023

In a groundbreaking announcement at the COP28 climate summit in Dubai, UAE President Sheikh Mohammed Bin Zayed Al Nahyan unveiled the creation of the ALTÉRRA climate fund, a significant initiative aimed at addressing the pressing challenges of climate change.

ALTÉRRA’s Ambitious Goals

The ALTÉRRA climate fund has set ambitious targets to attract a substantial $250 billion in investment by the end of the decade. This financial commitment underscores the UAE’s commitment to playing a pivotal role in global climate action.

Allocation of Funds
  • $25 Billion for Climate Strategies: A noteworthy portion of the fund, totaling $25 billion, is earmarked for climate strategies. This allocation emphasizes the fund’s focus on supporting projects and initiatives that directly contribute to mitigating the impacts of climate change.
  • $5 Billion for the Global South: Recognizing the unique challenges faced by developing nations, ALTÉRRA allocates $5 billion to incentivize climate-related investments in the Global South. This move reflects a commitment to fostering sustainable development in regions that are often disproportionately affected by climate change.
Private Sector Engagement

ALTÉRRA’s primary objective is to channel private sector investments into climate-related initiatives. By doing so, the fund aims to create a powerful synergy between public and private entities, leveraging the strengths of both sectors to accelerate progress in combating climate change.

Focus on Emerging Markets and Developing Economies

The ALTÉRRA climate fund explicitly targets emerging markets and developing economies. This strategic focus recognizes the crucial role these regions play in the global fight against climate change and seeks to catalyze transformative investments in areas that need them the most.

Important Points:
  • ALTÉRRA Climate Fund Announcement at COP28:
    • UAE President Sheikh Mohammed Bin Zayed Al Nahyan unveiled the ALTÉRRA climate fund at the COP28 climate summit in Dubai.
  • Fund’s Financial Targets:
    • The ALTÉRRA climate fund aims to attract a significant $250 billion in investment by the end of the decade.
  • Fund Allocation:
    • $25 billion is allocated to climate strategies, emphasizing support for projects directly addressing the impacts of climate change.
    • $5 billion is designated to incentivize climate-related investments in the Global South, recognizing the challenges faced by developing nations.
  • Private Sector Engagement:
    • The fund’s primary goal is to attract private sector investments into climate-related initiatives.
    • The strategy involves creating a synergy between public and private entities to accelerate progress in combating climate change.
  • Focus on Emerging Markets and Developing Economies:
    • ALTÉRRA explicitly targets emerging markets and developing economies.
    • This strategic focus acknowledges the vital role these regions play in the global fight against climate change and aims to catalyze transformative investments where they are most needed.
  • Global Commitment to Climate Action:
    • The creation of ALTÉRRA reflects the UAE’s commitment to playing a pivotal role in global climate action.
    • The fund symbolizes a significant step towards addressing the pressing challenges posed by climate change.
  • Sustainable Development Emphasis:
    • The $5 billion allocation for the Global South underscores a commitment to fostering sustainable development in regions disproportionately affected by climate change.
  • Pivotal Moment for Global Climate Efforts:
    • The ALTÉRRA climate fund marks a pivotal moment in the global effort to combat climate change.
    • With substantial financial commitment, strategic fund allocation, and private sector engagement, ALTÉRRA embodies the UAE’s commitment to a sustainable and resilient future.
Why In News

UAE President Sheikh Mohammed Bin Zayed Al Nahyan, at the COP28 climate summit in Dubai, announced the creation of a $30 billion climate fund named ALTÉRRA, emphasizing the nation’s commitment to fostering international collaboration in addressing climate change and promoting sustainable solutions for a greener future.

MCQs about ALTÉRRA Climate Fund

  1. What does the $25 billion allocation in the ALTÉRRA climate fund specifically target?
    A. Public infrastructure projects
    B. Climate awareness campaigns
    C. Climate strategies
    D. Renewable energy research
    Correct Answer: C. Climate strategies
    Explanation: A significant portion of the fund, totaling $25 billion, is earmarked for climate strategies, emphasizing support for projects directly addressing the impacts of climate change.
  2. What is the primary goal of ALTÉRRA in terms of private sector involvement?
    A. To reduce private sector participation
    B. To encourage private sector investments in climate initiatives
    C. To limit private sector engagement
    D. To focus solely on public sector collaboration
    Correct Answer: B. To encourage private sector investments in climate initiatives
    Explanation: The ALTÉRRA’s primary goal is to channel private sector investments into climate-related initiatives, creating a synergy between public and private entities.
  3. In which geographical areas does the ALTÉRRA climate fund explicitly focus its efforts?
    A. Developed nations
    B. Global North
    C. Emerging markets and developing economies
    D. Arctic region
    Correct Answer: C. Emerging markets and developing economies
    Explanation: The ALTÉRRA explicitly targets emerging markets and developing economies, recognizing their crucial role in the global fight against climate change.

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