Global investment in low-carbon energy technologies is growing rapidly, in line with rapidly declining costs. But, to reach net zero emissions by 2050, annual clean energy investment worldwide will need to more than triple by 2030 to around $4 trillion. To achieve this, most of the low-carbon investment required in both developed and developing countries will need to come from private sources, but governments and the international public finance sector must also play a role.
Building on traditional and innovative new development finance tools, the sector can mobilise climate investment opportunities in the most cost-effective way, by providing more up-to-date information, offering capacity-building, providing targeted incentives, and implementing policies that reduce investment risk.
UNEP – with the support of its bilateral and multilateral funding partners – drives the financial community’s investment in low-carbon development and sustainable energy. Through a range of projects, UNEP engages with governments, private sector and financial institutions to leverage private sector financing and provide turnkey and cost-efficient solutions that accelerate the transition to a more sustainable world and support governments in achieving their national low-carbon development ambitions.
UNEP is committed to promoting environmentally sustainable and climate-resilient economies and countries by prioritizing sustainable natural resource management and biodiversity conservation, sustainable consumption and production patterns, water security, climate resilience and renewable energy use.
Key elements of UNEP’s Energy Finance Work include:
Innovative Financing: Identification and negotiation with financial partners to raise private financing for projects, along with the development and implementation of innovative financial mechanisms – such as interest rate subsidies, discounted credit lines, and guarantees – to enable the de-risking of investments and thereby increasing uptake of sustainable energy technologies.
Technical assistance: Technical support for project development and implementation, including the elaboration of feasibility studies, environmental and social impact assessments, and risk management, with a focus on renewable energy and digital technologies, and energy efficiency.
Capacity building: Empowerment of local partners and both public and private stakeholders through capacity building to implement clean energy projects. This includes training programs, workshops, coaching in project and financial management, technical skill development, and partnership development with community-based organizations and local financial institutions to drive a paradigm shift in sustainable energy finance.
Communications and Knowledge Management: Development of knowledge platforms for stakeholders, along with communications and outreach strategies to raise awareness of clean energy technology projects, highlighting both their fiscal and environmental benefits.
UNEP has a project portfolio of more than 50 countries, working with both public and private sector, including financial institutions. It has leveraged more than US$ 6 billion towards clean energy technologies, demonstrating their fiscal and energy saving potential.
