LONDON, June 13 (Reuters) - Brookfield Asset Management ( BAM )

is looking to raise $5 billion for a fund backed by the United

Arab Emirates (UAE) that aims to scale up climate finance in

emerging markets, the Canadian company said on Thursday.

The fund, dubbed the Catalytic Transition Fund (CTF), was

announced at the COP28 climate talks in Dubai last December, but

this is the first time Brookfield has confirmed its target

size.

Anchored by a $1 billion commitment from the $30 billion

UAE-based ALTÉRRA fund, the first close of the CTF is expected

by the end of 2024, Brookfield said in a statement.

The first close of a fund refers to when it has secured

enough commitments to start making investments.

Excluding China, developing economies get less than 15% of

the world's clean energy dollars despite being responsible for

nearly a third of global emissions, and as a result investments

there can often have a bigger impact, Brookfield said.

Returns to the ALTÉRRA fund will be capped at an unspecified

amount, allowing other investors to secure better risk-adjusted

returns. At least 10% of the fund's capital will be provided by

Brookfield, which manages $925 billion in assets.

"The Catalytic Transition Fund is a private market solution

to the global challenge of delivering transition investment to

emerging markets," said Mark Carney, Chair and Head of

Transition Investing at Brookfield Asset Management ( BAM ).

ALTÉRRA Chief Executive Majid Al-Suwaidi said the world

needed to pick up the pace "significantly" on addressing climate

change and its investment in the CTF would "supercharge

investment in emerging markets".