Alterra And BBVA Launch Climate Fund: USD 250 Million Strategic Commitment

ALTÉRRA and BBVA announce a new climate finance partnership, with BBVA planning to commit $250 million as a strategic limited partner to a climate co-investment vehicle that ALTÉRRA intends to launch, subject to regulatory approvals, strengthening both institutions’ sustainable finance agendas and underlining Abu Dhabi’s growing role as a hub for international climate-focused capital.

The planned ALTÉRRA Opportunity Fund is designed to follow a diversified global strategy, targeting climate-aligned infrastructure, private equity and private credit, with investments in areas such as Energy Transition, Industrial Decarbonisation, Climate Tech and Sustainable Living, spanning North America, Latin America, Europe and other Growth Markets in both advanced and emerging economies.

Once regulatory approvals are secured, the Fund will be domiciled in ADGM and will bring together existing co-investments from ALTÉRRA Acceleration into one dedicated structure, fully managed by ALTÉRRA, which represents an important step in ALTÉRRA’s progression into its next growth phase and its aim to deliver strong risk-adjusted returns alongside measurable climate impact.

The strategic collaboration was presented during Abu Dhabi Sustainability Week by Dr. Sultan Al Jaber, Chairman of ALTÉRRA, and Carlos Torres Vila, Chair of BBVA, highlighting the shared climate finance priorities of both organisations and reinforcing Abu Dhabi’s profile as a convening point for large-scale sustainable investment discussions.

Dr. Al Jaber said, "This fund marks a new chapter for ALTÉRRA as we move into our next stage of growth and deepen our ability to mobilise and deploy global capital toward high-impact investments," Dr Al Jaber said. "Our partnership with BBVA marks an important step in strengthening global collaboration in clean energy, sustainable infrastructure and technology investments, allowing us to continue to back high-quality opportunities delivering long-term value."

Vila stated, "This partnership aligns with BBVA’s strategy to make sustainability a key driver of differential growth globally and to deepen our presence in fast-growing climate finance hubs such as Abu Dhabi." BBVA sees the agreement as consistent with its wider climate objectives and its interest in the Middle East as a strategic region.

BBVA has operated a Representative Office in Abu Dhabi since 2013, underscoring the importance of the Middle East for its Corporate & Investment Banking activity, and the region’s rising influence in global markets and economic transformation has led BBVA to seek closer support for institutional clients and corporations with international operations.

This regional commitment has advanced further after ADGM’s Financial Services Regulatory Authority granted In-Principle Approval for a new BBVA branch in Abu Dhabi, which will allow the bank to expand its wholesale banking services in the region and give BBVA greater capacity to serve corporate and institutional clients locally while linking them to BBVA’s global network.

By acting as an anchor investor in ALTÉRRA’s new climate fund, BBVA strengthens ties with one of the Middle East’s influential investors, advancing its sustainability ambitions while widening its presence and visibility in the region, in parallel with BBVA’s plan to channel €700 billion in sustainable business between 2025 and 2029 after surpassing its earlier €300 billion target ahead of schedule.

In addition to the $250 million planned investment in ALTÉRRA, BBVA has already committed approximately €300 million to other climate funds focused on decarbonisation, indicating that the ALTÉRRA Opportunity Fund fits into a broader global climate strategy as Abu Dhabi’s ADGM develops further as a centre for large-scale climate finance and cross-border sustainable investments.

With inputs from WAM