Alterra has unveiled a $1.2bn climate co-investment vehicle in partnership with BBVA. The Spanish bank will commit $250m and serve as the fund’s strategic limited partner. The vehicle will be domiciled in the Abu Dhabi Global Market and pursue a diversified strategy across climate-aligned infrastructure, private equity, and private credit.

The move highlights the growing influence of Gulf capital in financing the global energy transition. Alterra, backed by a $30bn commitment from the UAE, aims to mobilize up to $250bn in climate investment this decade. This partnership meets rising demand for large-scale capital for infrastructure and private credit assets, areas where traditional banks have pulled back.

BBVA, with its extensive operations in Europe and Latin America, gains a strategic entry point into climate-aligned assets. Alterra positions itself as a long-term capital provider blending public and private market strategies. The vehicle adds to a pipeline of Gulf-backed climate funds, as regional investors seek both financial returns and exposure to the energy transition.