UNEP is well-positioned to ensure the readiness of target countries for significant clean tech investment. Such early stage support must be closely linked to future investment opportunities. This involves preparing the information required to successfully target investments, and building the local resources needed to effectively manage clean tech finance. UNEP’s approach is to work closely with local Governments and local partners, enabling experience from other countries to be used within the local context, thereby ensuring the efficient implementation of best practice. To offer such services, UNEP can draw upon its own technical experts as well as those of its two collaborating centres—a total of over fifty energy and climate specialists, having worldwide experience with the needs of developing countries.
UNEP also views true partnership with the financial services community as essential for any lasting impact. Combining the environmental expertise of UNEP with the commercial skills and market acumen of the private sector provides a valuable collaborative resource. Links to public financiers at the national and multilateral levels similarly enable effective joint approaches to overcome the fundamental barriers to effective clean tech implementation.
Such assistance aims to help mainstream clean tech investment by showing how such activities can complement, and often benefit, the broader mandates of institutions involved with the commitment and management of financial resources. Key partner groups include:
UNEP engages with the authorities in developing countries and countries in transition that have significant potential to reduce GHG emissions by adopting clean energy technologies, and have a willingness to commit to a clean energy future as part of their transition to a green economy.
Within a participating country UNEP links with a range of different stakeholders, including ministries of energy, finance, industry, employment, environment and agriculture; the UNFCCC climate change focal point; electric utilities; regulatory bodies; technology institutions; banks and development finance institutions (DFIs); civil society organizations; and private sector investors. The exact mix depends upon the specific conditions in the target country.
the Multilateral Development Banks (e.g. World Bank, IFC) and the Regional Development Banks (e.g. African, Asian and Inter-American) all have significant financial resources that can be targeted at Clean Tech applications in developing countries and emerging economies. By working with UNEP, the Banks can benefit from targeted pre-investment services that ensure the greatest impact from the funds committed.
Local financial institutions:
UNEP has a good record of engaging with members of the local financial community at the highest levels, helping them to integrate climate considerations – both opportunities and liabilities – into their operations. By engaging with domestic banks and investors within target countries, UNEP helps to launch financial services and products that bring significant climate benefits.
Impact of Partnership with UNEP
Experience suggests that a carefully-targeted package of support measures from UNEP, though comparatively modest in financial terms, can equip developing countries with the ability to attract significant levels of climate investment. Target countries will also be able to increase the renewable energy share of primary energy supply; become more efficient in the use of energy; enhance energy security; reduce the adverse environmental impacts of conventional energy use; increase employment in the clean energy sector;
An accelerated pace of investment is needed in order to achieve a peak in emissions by 2020, thus averting the worst consequences of climate change. In one scenario, CO2 emissions from the world’s energy infrastructure peak at 30.8 Gigatonnes in 2019 if annual investments rise from $155 billion in 2009 to $500 billion by 2020. Such investments can bring significant benefits to countries. For example at present, the global market volume for environmental products and services, including efficiency, recycling, water sanitation and efficiency, and sustainable transport, runs to about €1,000 billion and may reach €2,200 billion by 2020. Countries partnering with UNEP can therefore increase their participation in the global green jobs market.