The climate investment fund backed by the UAE accelerates its clean energy strategy in Europe with a major push in the Italian renewable market
Alterra teams up with Absolute Energy and I Squared Capital
Alterra, the private climate investment fund launched by the United Arab Emirates, has announced a €50 million commitment to Absolute Energy, an Italian platform focused on renewable energy development. The joint investment, made through Alterra’s Acceleration Fund, also includes U.S.-based I Squared Capital, a Miami-headquartered global infrastructure investor.
The deal targets the development of an initial 1.4 GW pipeline of solar energy and battery storage projects across Italy. The broader goal, however, is to scale up to 6 GW, according to Alterra.
A strategic move from the COP28 climate fund
Launched at COP28 in 2023 with a $30 billion allocation, Alterra has so far deployed just $6.5 billion. Most of its funding has been directed toward climate and energy transition initiatives. To date, Alterra has backed only two major projects: Evren, a renewable energy platform in India, and France’s Neien—each with a $100 million investment.
Commenting on the Italian deal, Alterra CEO Majid Al Suwaidi stated:
“We’re excited to support Absolute Energy in its next phase of growth. With a strong project pipeline and deep sector expertise, the company is well-positioned to shape the future of clean energy in Italy. Alterra invests to accelerate climate transition through innovative partnerships. Working alongside a global leader like I Squared Capital, with its proven experience in platform building and renewables investment, this deal further shows how Alterra collaborates to scale impact across key markets.”
Italy’s clean energy goals in the spotlight
The 1.4 GW pipeline is expected to reduce nearly 380,000 metric tons of CO₂ equivalent annually. The partnership aligns with Italy’s national goal of adding 46 GW of new solar capacity by 2030—an essential step toward reaching net-zero emissions.
In this scenario, Absolute Energy aims to evolve into a next-generation independent power producer (IPP), leveraging opportunities from decarbonization and the energy transition.
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