The funds are being created to help the best-in-class climate focused tech startups. That's the best way to come up with the solutions for Net Zero. Image Credit: Shutterstock

As COP28 concluded, the global community was left to ponder over the commitments made and the challenges that lie ahead.

The conference achieved a historic pledge to transition away from fossil fuels, aiming for Net Zero by 2050. It also highlighted the necessity for more advanced global strategies to combat climate change.

According to UNDP research, meeting the 1.5 degree centigrade target of the Paris Agreement requires a 40 per cent reduction in global greenhouse gas emissions by 2030, with a significant portion relying on technologies not yet commercially viable.

Faced with this, it’s crucial for governments – particularly those with significant convening power like the UAE – to pursue more ambitious strategies to facilitate worldwide innovation in climate technology. History shows that groundbreaking innovations flourish under conditions of clear, long-term policy commitments, supportive ecosystems for talent, and substantial financial support from leading entities.

These are crucial for accelerating the development and deployment of climate technologies, vital for achieving net-zero goals. All of these raise a critical question: how can such transformative innovation – potentially the most consequential of our generation – take root?

Financial infrastructure

A key element in fostering innovation, particularly in the field of climate technology, is strategic long-term commitment from government and policymakers. To do this, policymakers must go beyond a mere vision and utilize their most updated Nationally Determined Contributions (NDCs) to craft concrete, pragmatic action plans, guiding innovators.

This sets a direction and provides the stability and certainty needed for risk-taking and exploration.

While government commitment is essential, access to capital is equally crucial for innovators, particularly in climate technology, where new ventures often require significant early investment. COP28 bridged this gap, aligning entrepreneurial talent with necessary financial mechanisms to scale climate-tech innovation.

The establishment of the UAE’s ALTÉRRA fund is a prime example of this synergy in action. It should direct considerable financial resources to climate technologies, especially in emerging markets most affected by climate change, thus bridging strategic commitment with actionable investment.

The fund's collaboration with world-leading investment firms such as TPG - known for its success in nurturing high-growth tech businesses - indicates that it is well-positioned to identify and scale up groundbreaking climate tech ventures.

Initiatives like this signal the vital global leadership roles that countries like the UAE, with their strong financial capabilities and strategic long-term commitment to climate action, can play in catalyzing the growth of the most innovative climate ventures worldwide.

Building robust ecosystems

AI, still in its early stages, cannot yet replace the creativity and audacity needed to develop new mathematics or physics. Humans therefore retain a monopoly on these elements, which are fundamental to innovation and underpin the technological breakthroughs essential in our collective fight against climate challenges.

The growth and flourishing of tech startups do not occur in isolation. It thrives in a networked environment where ideas, resources, and expertise converge. Incubators like Abu Dhabi's Hub 71, and NEX COP28 Climate Tech Startup Accelerator, are instrumental in fostering this type of ingenuity and knowledge sharing.

In a world increasingly fraught with geopolitical tensions, the necessity for cross-border efforts in climate tech research and development is more urgent than ever. In this context, the UAE’s robust, positive relationships with key international stakeholders and strong convening power, position it as an ideal hub for technological advancements.

The success of COP28 marks a significant milestone, but it also highlights the need to enhance our strategies in addressing climate change. Central to this is fostering technological innovation, requiring synergies between investment, capital, and talented minds in climate research.

By supporting their efforts to explore, create, and take bold steps, we can pave the way for significant progress in this field.

The UAE has the opportunity to cement COP28's legacy by becoming a leader in climate tech innovation. Investing in climate solutions and uniting global talents, the UAE can lead the development of technologies crucial for a sustainable, habitable planet for future generations.