Catalyzing financing though market creation/ transformation for sustainable energy programmes

This programme involves catalysing finance by creating the necessary market conditions and capacity for countries to transition to more sustainable energy systems, particularly through renewable energy and energy efficiency initiatives. This work is being done in response to the tremendous need for investments by developing countries in their energy sectors just to keep up with business-as-usual andthe achievement of the MDGs. UNDP’s GEF programme’s grants, together with the leveraged cofunding, represent 80 per cent of UNDP’s total energy-related portfolio in this area of priority, with a heavy geographical concentration in middle-income and emerging economies. While some of this work is related to expanding access to energy, the majority of projects deal with promoting more environmentally sustainable energy systems—through improved energy efficiency and adoption of renewable energy technologies—and addressing climate-related energy challenges. The MDG Carbon Facility, announced in December of 2005, is UNDP’s contribution to making strides in countries’ transition to a more sustainable energy future. Its objective is to bridge the gap between the world of carbon and the world of MDGs. As such, UNDP is working with developing countries and economies in transition to explore carbon financing opportunities that would help them accelerate the transition to low-carbon energy systems.