Global Environment Facility (GEF), UNEP/DTIE and UNEP/DGEF are jointly responsible for the implementation of the project. The GEF has recognized the importance of its support for risk mitigation instruments for renewable energy projects since increased funding availability for renewable energy investments to leverage private finance is one of the GEF's strategic priorities.
Accordingly, the GEF has provided support in various types of contingent finance mechanisms, including contingent loans and grants to mitigate the risks of investments and the high costs of project development. Thus, given the few relevant commercial activities in this area and a variety of possible modalities of potential risk management instruments where the GEF could intervene effectively, the GEF decided to support this project which aims at assessing such options and providing the GEF with key proposals on appropriate financial risk management instruments. Therefore this project may impact future GEF decision making, considering that significant financial resources are required to create financial risk management instruments. The GEF secretariat is member of the project's Steering Committee and Advisory Group.
BASE's mission is to promote and facilitate investment in energy efficiency and renewable energy to accelerate worldwide commercialization of sustainable energy and to contribute to global climate protection, poverty mitigation, and conflict prevention. In March 2001, the Canton of Basel-Stadt (Switzerland) and the United Nations Environment Programme (UNEP) established BASE as a UNEP Collaborating Centre with the function of supporting UNEP's energy programme, particularly in the area of promoting new approaches to financing sustainable energy in developing countries. BASE is a partner in this project but also in the UNEP Sustainable Energy Finance Initiative (SEFI), in other projects of UNEP Energy Branch and in UNEP Finance Initiative.
Over the last two decades, the World Bank (WB) Group has been helping its partner countries take advantage of opportunities to improve the use of renewable energy and energy efficiency.
This project is in connection with the WB's work on tools for risk management in clean technology investment which focuses on Carbon Development Mechanisms (CDM) and Joint Implementation (JI) projects including renewable energy. The on-going WB/GEF projects "the Geothermal Development Fund for the Europe Central Asia Region (GeoFund) and the Russia Renewable Energy Programme (RREP) were the basis of collaboration between the WB and UNEP. The WB is closely involved in the consultation, discussions and peer-reviews of the assessment results. WB is member of the project's Steering Committee.
UNDP-GEF's contribution to the project includes participation in discussions and consultations with industry stakeholders and collaboration through offering UNDP-GEF project case studies. UNDP is also member of the project's steering committee.