UAE takes bold move to combat climate change

COP28, held in the UAE, marked a notable moment with the launch of Alterra, a groundbreaking $30 billion climate finance fund.

In the global race against climate change, governments are urgently accelerating the transition to renewable energy, with wind power standing out as a key pillar of hope, Caliber.Az reports citing the foreign media.

However, the industry has faced significant challenges, including rising costs, supply chain disruptions, and regulatory delays. Recent setbacks, like debris from a failed wind turbine washing ashore in Nantucket, have also dented public perception of wind energy.

Despite these obstacles, Vestas Wind Systems A/S, a longstanding leader in the wind sector, has navigated these macro-level challenges with resilience. Meanwhile, the managing partner of Copenhagen Infrastructure Partners, an offshore wind specialist, remains notably optimistic about the future of the industry. The key to advancing the energy transition may lie in engaging emerging markets more effectively.

In the 1980s, focusing on wind energy might have seemed like a radical move, but Vestas committed to the idea with unwavering dedication. Over the decades, the Danish company rose to become a leading name in wind turbines, yet its journey has been fraught with challenges. When Henrik Andersen joined Vestas' board a decade ago, the company was reeling from its largest loss ever. Despite guiding the company back to stability and assuming the role of CEO in 2019, Andersen faced a new crisis that led to an unprecedented decision: raising wind turbine prices. In the latest episode of Bloomberg Green’s Zero podcast, Andersen reveals the strategies used to convince shareholders to endure short-term losses and his stance on the term “subsidy.”

Meanwhile, Copenhagen Infrastructure Partners (CIP), a hybrid entity that blends investment fund and energy company functions, plays a pivotal role in the offshore wind sector. Co-founder Jakob Baruël Poulsen, a veteran of the industry, has overseen CIP’s growth, leveraging significant investments from pension funds and insurance companies to develop major offshore projects, including North America’s first commercial-scale offshore wind farm. At the World Economic Forum in Davos, Poulsen discussed CIP’s ambitious plans to build artificial islands at sea to accelerate offshore wind deployment, although this conversation predated the recent incident involving a wind turbine at a Nantucket offshore farm, where CIP is a key developer.

In a rare early triumph at COP28, the United Arab Emirates, host of the conference, unveiled a major commitment on its very first day: a $30 billion pledge to launch Alterra, a new climate finance fund. Among those set to channel this substantial investment is Canada’s Brookfield Asset Management. With approximately 10% of its assets devoted to renewables and climate transition, Brookfield’s renewables arm, Brookfield Renewable Partners, introduced the world’s largest private climate fund, the $15 billion Global Transition Fund, in 2021. Connor Teskey, CEO of Brookfield Renewable Partners, discusses the anticipated growth of this sector and highlights three emerging markets poised for significant opportunity in the latest episode of the Zero podcast.

Artificial intelligence (AI) is also positioned to play a pivotal role in the climate fight, though its future impact is a subject of debate. AI's advanced data analysis capabilities could revolutionize energy management and efficiency, yet its own substantial energy consumption raises concerns. Priya Donti, MIT professor and founder of Climate Change AI, established the organization to explore AI’s potential in climate solutions. Her initiative brings together scientists to address sustainable agriculture, optimized heating and cooling systems, and other critical areas. Donti joins Zero host Akshat Rathi to discuss Climate Change AI’s latest projects and the importance of guiding AI’s development to ensure it benefits the climate agenda.