ALTÉRRA Fund for Climate Investments is launched by the UAE
Context:
As the host of COP-28, the United Arab Emirates has pledged $30 billion to establish ALTÉRRA, a climate investment fund.
ALTÉRRA Fund Overview:
- ALTÉRRA’s primary goal is to mobilize $250 billion globally by 2030, aiming to become the largest fund dedicated to climate investments.
- Its focus lies in fostering the transformation of emerging markets and developing economies through climate-oriented investments.
Clean Energy in India:
An initial segment of the fund has been earmarked for the development of over 6.0 GW of new clean energy capacity in India, encompassing 1,200 MW of wind and solar projects projected to be operational by 2025.
Financial Requirements:
To address climate change, emerging markets and developing economies are estimated to require $2.4 trillion annually by 2030.
Key Verticals:
ALTÉRRA will concentrate on four main areas: Energy Transition, Industrial Decarbonisation, Sustainable Living, and Climate Technologies.
Leadership and Management:
- Sultan Ahmed Al Jaber, the COP-28 President, will serve as the chair of the ALTÉRRA fund.
- Lunate, an independent global investment manager, has established ALTÉRRA, with its domicile situated in the Abu Dhabi Global Market.
Mission and Impact: Positioned as a transformative solution, ALTÉRRA aims to attract private capital into climate-focused investments.
The fund’s scale and structure are anticipated to generate a significant impact in the realm of climate investment.
The launch of ALTÉRRA is in alignment with the UAE’s COP Presidency Action Agenda, reflecting efforts to enhance the availability, accessibility, and affordability of climate finance. |
ALTÉRRA Fund for Climate Investments is launched by the UAE
Context:
The Green Credits Scheme was introduced by India during COP28 in Dubai, with Prime Minister Modi highlighting its departure from the commercial focus of carbon credits, emphasizing a more extensive environmental impact.
Overview of the Green Credits Programme
- Objective: The primary goal is to generate Green Credits by engaging in afforestation activities on degraded wasteland.
- Commencement: Launched in October by the Environment Ministry, the program seeks to incentivize a range of environmentally positive actions.
- Action Areas: Encompassing activities such as tree plantation, water management, sustainable agriculture, waste management, air pollution reduction, mangrove conservation, ecomark label development, and sustainable building.
- Beyond Carbon: Distinguishing itself from existing carbon credit systems, this initiative provides incentives for actions extending beyond carbon emission reductions, including water conservation and soil improvement.
Key Features
- Market-Based Approach: The program’s objective is to establish a market for trading green credits, mirroring carbon credit systems. Companies stand to earn credits for their environmental initiatives, creating a platform for credit exchange.
- Development Stage: The methodologies and standards for measuring and verifying these actions are currently in development, and the credit market is yet to be fully established.
- Potential Buyers: It is anticipated that private companies may be inclined to purchase green credits to fulfill their Corporate Social Responsibility (CSR) commitments.
Inclusive Impact: In contrast to carbon markets, which primarily cater to industries and corporations, the green credit program extends its benefits to individuals and communities.
Green Shipping
Context:
In a workshop on ‘Green Inland Vessels Transition,’ the Ministry of Ports, Shipping, and Waterways (MoPSW) emphasized the importance of Green Shipping, aligning with the goals of ‘MIV 2030’ and ‘Amritkal Vision 2047.’
The government recognizes the maritime sector’s crucial role in achieving Green Sustainable Transportation, with MoPSW initiatives supporting the ‘National Green Hydrogen Mission’ and ‘Harit Sagar Guidelines.’
Environmental Impact of Shipping:
- Shipping is a vital component of the global supply chain but contributes significantly to CO2 and greenhouse gas emissions.
- The maritime sector alone is responsible for emitting 940 million tonnes of CO2, constituting 2.5% of total greenhouse gas emissions.
- Historically, ships have used heavy fuel oil, leading to sulphur emissions harmful to health and causing acid rain.
- Since January 1, 2020, the IMO Sulphur 2020 mandates ships to transition to alternative fuel oils emitting less than 0.50% sulfur, targeting a 77% reduction in SOx emissions.
- Understanding Green Shipping: Green shipping focuses on minimizing resource and energy use in maritime transportation to mitigate environmental pollution.
Strategies for Green Shipping:
- LNG as an Alternative Fuel: This alternative fuel reduces CO2 emissions by 20%, minimizing SOx and NOx emissions. However, safety concerns need to be addressed.
- Slow Steaming: This efficient method reduces emissions by 19% by decreasing ship speed by 10%. It is economically and environmentally beneficial, especially during port calls.
- Reducing Empty Containers: Collaboration among carriers to share containers helps in cutting shipping costs and reducing CO2 emissions from empty containers.
- Water Management: Advanced ballast water management systems, utilizing filtration and electro-chlorination, are adopted to prevent ecological threats.
- Renewable Energy: The harnessing of wind and solar energy to power ships helps in reducing fuel consumption and greenhouse gas emissions.
Green Shipping Initiatives in India:
- India has been chosen for the IMO Green Voyage 2050 project, launching the Green Tug Transition Programme (GTTP) and the Centre of Excellence in Green Port & Shipping (NCoEGPS).
- Green Hybrid Tugs, powered by hybrid propulsion systems using non-fossil fuel solutions like Methanol, Ammonia, and Hydrogen, are part of these initiatives.
- India aims to achieve 60% renewable energy in major ports, reducing carbon emissions by 30% per ton of cargo by 2030.
- Paradip Port, Deendayal Port, and V.O. Chidambaram Port are designated Hydrogen Hubs for handling, storing, and generating green hydrogen by 2030.
The Maritime Vision Document 2030 has been launched to ensure a sustainable maritime sector and a vibrant blue economy in India.
PURCHASING MANAGER’S INDEX
Context:
“In recent times, the manufacturing sector has witnessed a surge in activity during November.
This upturn is attributed to increased demand and an alleviation of pricing pressure, as highlighted by the Purchasing Managers Index (PMI) reaching a value of 56, according to the recent survey by S&P Global.
The Purchasing Managers’ Index (PMI):
- Purpose: It serves as an indicator for business activity in both the manufacturing and services sectors.
- It relies on survey-based measures, seeking respondents’ opinions on changes in key business variables from the previous month.
- Components of PMI: The index is based on five major surveys covering New orders, Inventory levels, Production, Supplier deliveries, and Employment.
- PMI Types: It encompasses Manufacturing PMI and Services PMI.
- Calculation: The index is calculated independently for manufacturing and services sectors, followed by the construction of a composite index.
- PMI Scale: Ranging from 0 to 100, a value above 50 signifies expansion in business activity, while anything below 50 indicates contraction.
Global PMI: This is an economic indicator derived from questionnaires sent to manufacturing and services companies across more than 40 countries.”
Global Drought Snapshot
Context:
In the 2022-23 period, a global drought map brought to light that 23 nations had officially declared a state of drought emergency, underscoring the widespread impact of severe drought conditions on a global scale.
Global Drought Emergency Declarations:
- In the fiscal year 2022-23, 23 countries, including India, issued declarations of drought emergencies at either the national or sub-national levels.
- This information is drawn from a comprehensive global drought map compiled by the United Nations.
UNCCD Report Highlights:
- The United Nations Convention to Combat Desertification (UNCCD) released a Global Drought Snapshot report, emphasizing the severe repercussions of drought, which encompass loss of life, economic setbacks, and adverse effects on various sectors.
Drought-Impacted Population:
- Approximately 1.84 billion people were affected by drought, with 4.7% facing severe or extreme drought conditions.
- This data is derived from reports submitted by 101 Parties to the UNCCD.
Regional Emergency Declarations:
- Europe experienced the highest number of emergency declarations (8), with countries such as Spain, Italy, the United Kingdom, Greece, Portugal, Romania, and Serbia making official declarations.
- Extensive drought conditions in 2022 resulted in Europe recording its largest affected area.
Global Drought Trends:
- Droughts expanded both in terms of territory and intensity, impacting countries like the United States and Canada.
Asia witnessed drought emergencies in nations such as India, Sri Lanka, Indonesia, Kazakhstan, and China during the 2022-23 period.
Record-Breaking Heat in 2023:
- Globally, 2023 set multiple heat-related records, surpassing a warming of 2 degrees Celsius on November 17.
- This information is based on preliminary analysis by the European Centre for Medium-Range Weather Forecasts.
Cascading Effects of Drought:
- Droughts trigger a series of consequences, including dwindling reservoir levels, reduced crop yields, loss of biodiversity, famines, and substantial economic repercussions.
- Economic losses are estimated to reach billions of dollars annually.
Global Drought Vulnerability Index 2023:
- Several countries outside conventional drought-prone regions, such as Uruguay, Niger, Djibouti, Cabo Verde, and Mauritania, declared drought emergencies.
- The Horn of Africa faced its most severe drought in 40 years, affecting Ethiopia, Kenya, and Somalia.
Underreported Impact of Human-Induced Droughts:
- The substantial impacts of human-induced droughts are unfolding quietly, often escaping immediate public and political attention.
- Droughts frequently go unnoticed, perpetuating a cycle of neglect.
Research Gap and UNCCD Initiatives:
- Over the past two decades, only 26% of scientific literature has investigated society’s influence on the duration and intensity of drought hazards.
- The UNCCD stresses the necessity for additional research to trace the long-term dynamics between society and drought risk.
Global Drought Vulnerability Statistics:
- A staggering 85% of people affected by droughts reside in low- or middle-income countries.
- In 2022, 98% of the 32.6 million new disaster displacements were a result of weather-related hazards, including storms, floods, and droughts.
International Collaboration and Alliance Launch:
- The report was officially launched during a high-level event in Dubai, accompanied by the introduction of the International Drought Resilience Alliance.
Led by the governments of Senegal and Spain, this alliance focuses on collaborative efforts to enhance drought resilience.
