| By Will Kennedy Ever since the UAE was announced as host of COP28, all the emphasis has been on the 3-million-plus barrels of oil produced in the country every day. But there's more to the economy than oil. Dubai's Manhattan-in-the-desert skyline is testament to its emergence as an increasingly important financial center. Money is also big business in the UAE. And money is a big part of COPs. In a speech that put his long engagement with the climate agenda on full display, the UK's King Charles made a full-throated appeal to unlock more capital for the energy transition — even dropping wonky phrases like "first loss risk guarantees."  King Charles III speaks Anwaar-ul-Haq Kakar, Pakistan's prime minister, center, at the COP28 climate conference on Friday. Photographer: Hollie Adams/Bloomberg Perhaps no surprise then that away from the rhetoric-heavy speeches from global leaders in the main hall, the splashiest announcement today was on climate finance. COP28 President Al Jaber announced the UAE will put $30 billion into a climate finance vehicle called Alterra. Al Jaber called it a "vehicle like no other." (Al Jaber will be chairman of the new company, adding another role to a long list of high profile jobs, including CEO of Abu Dhabi National Oil Co. and chairman of renewables firm Masdar.) On the face of it, Alterra does look like a big deal: $30 billion is a sizeable chunk of change and the UAE claims it could eventually unlock $250 billion in investment. And Alterra has already forged partnerships with blue-chip investment firms BlackRock, Brookfield and TPG to invest $6.5 billion, some of it earmarked for solar projects in India. But a closer look raises questions about how much of the cash will find its way into the developing countries most in need of climate finance. Of the $30 billion, $25 billion will go into climate investment at scale. Just $5 billion will be deployed as risk mitigation capital in the Global South — the kind of finance that unlocks meaningful amounts for the poorest nations. Even $5 billion is very welcome in a world where rich countries have consistently failed to live up to even modest pledges on finance, but it's no game changer. | 
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