UAE fund targets US renewables as Trump rolls back incentives

• Trump prioritising fossil fuels
• Halting clean energy tax credits
• $30bn Altérra aims to fill the gap

A $30 billion UAE climate fund is ready to increase investment in US renewables as Republicans move to unwind parts of Joe Biden’s signature climate legislation.

Majid Al Suwaidi, CEO of Altérra, the world’s largest private climate investment platform, said it was prepared to fill the gap wherever US federal incentives for clean energy are rolled back.

“This creates opportunity for investors like us who are ready to step in,” he told the World Utilities Congress in Abu Dhabi on Tuesday.

“As that sector changes, as the policy changes, this is where we’re very well placed to take advantage.”

Al Suwaidi’s comments come after Republicans in the House of Representatives passed the “One Big Beautiful Bill” on May 22. The wide-ranging legislation advances much of President Donald Trump‘s domestic agenda, including the elimination of nearly all the clean energy tax credits introduced under Biden’s Inflation Reduction Act. 

The bill, which nevertheless keeps more favourable terms for advanced nuclear energy, is now headed to the Senate, where Republicans hold a narrow majority.

Trump is prioritising fossil fuel production during his second term, with a “Drill, baby, drill” mandate aimed at increasing US oil and gas output.

The repeal of the Biden incentives, including those targeting solar, wind and electric vehicle infrastructure, could disrupt capital flows into the US renewables sector, analysts have warned. 

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According to a 2023 report from consultancy Rystad Energy, clean energy projects in the US were forecast to add more than $270 billion to the tally in additional investments by the end of the decade, with developers taking advantage of tax credits.

Launched at Cop28 in Dubai, Altérra aims to mobilise $250 billion in public and private climate capital by 2030, working in emerging markets and advanced economies alike.

Altérra is managed by Abu Dhabi-based Lunate, an alternative investment manager with $110 billion of assets under management. 

Lunate in turn is co-owned by Chimera Investments, which operates under the umbrella of Royal Group. Sheikh Tahnoun bin Zayed Al Nahyan, a member of the Abu Dhabi royal family and the UAE’s national security adviser, is chairman of Royal Group.

Altérra is working with global investment companies Brookfield, TPG and Blackrock, deploying $6.5 billion in capital.

“Today we have a huge pipeline of deals,” said Al Suwaidi. “We are moving to a more co-investment phase.”