Alterra has unveiled plans for a $1.2bn climate co-investment vehicle alongside BBVA, underscoring the growing role of Gulf capital in financing the global energy transition, according to a report by Bloomberg.

BBVA will commit $250m to the vehicle and act as its strategic limited partner, Alterra said. The fund will be domiciled in Abu Dhabi Global Market and pursue a diversified global strategy spanning climate-aligned infrastructure, private equity, and private credit.

Alterra was launched as one of the world’s largest private climate investment platforms and is backed by a $30bn commitment from the United Arab Emirates. The UAE has said the platform aims to mobilise up to $250bn of climate-related investment by the end of the decade.

The partnership reflects rising demand for large-scale capital pools capable of funding capital-intensive transition assets, particularly in infrastructure and private credit, where banks have become more selective.

BBVA has significant banking operations across Europe and Latin America, while Alterra has been positioning itself as a long-term capital provider able to blend public and private market strategies.

The vehicle adds to a growing pipeline of climate-focused private markets funds being launched from the Gulf, as regional investors seek both financial returns and strategic exposure to energy transition assets.

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