Energy Transition

Our work areas

Energy transition

73%

of global greenhouse emissions come from the energy sector.

$4 trillion

are needed to reaching net-zero emissions by 2050 — meaning that annual clean energy investments worldwide have to more than triple by 2030.

30 million

jobs could be created by the energy transition.

70%

Annual energy-related CO2 emissions need to decline 70% below today's levels by 2050 to set the world on a pathway toward meeting the climate goals. Renewables, energy efficiency and substantial electrification can provide over 90% of the necessary reduction.

$423 billion

are spent every year by governments to subsidise fossil fuels. Repurposing these subsidies could pay three times over the annual amount required to ‘eradicate’ extreme poverty as measured with the PPP$1.90 a day poverty line.

We work with countries to promote energy for development, and build the resilient, equitable, sustainable energy systems of tomorrow through just energy transitions.

The intensifying climate emergency, ongoing energy crisis and increasing political uncertainties around the world must be the turning point to accelerate the energy transition.

The energy transition is a continuing process requiring long-term energy strategies and planning, with a country-tailored focus on applying appropriated energy technologies to reach net-zero emissions. We know that a net-zero emissions pathway will be more successful if trade-offs in energy supply and demand are acknowledged and mitigated. This means an integrated, people-centred approach, in which all available energy technologies play their important role in transforming local and national energy systems.

UNDP is committed to working with developing countries to realize a net-zero energy transition, in a manner that leaves no one behind. Therefore, UNDP’s agenda on the energy transition integrates increased action on governance, social protection and gender equality as nexus area to technological innovation and financial requirements.

Our focus

In partnership with others - governments, multilateral agencies, donor community, the private sector, philanthropy and civil society - we build capacity to support interventions with a clear potential to accelerate the achievement of the SDG7 and that are aligned with the Paris Agreement and NDCs targets.

To do so, we work with countries to modernize their energy infrastructure, through innovation and new business models. This will be accompanied by suitable financial mechanisms and policy de-risking approaches to channel public and private climate finance where it is most needed and impactful, and offering a platform for honest dialogues and advice.

Key areas of support

While technology and innovation, finance and economy are paramount in the energy transition process, UNDP's Sustainable Energy Hub has an integrated and people-centered approach that will focus on the following nexus areas: governance, social protection and gender equality.

Technology and Innovation

The energy transition is especially important in fast-growing developing regions where future industrialization and development will be concentrated. From a technological perspective, all renewable and low-emissions energy technologies will play a role in regional and national energy transitions.

A technician walks among solar panels against a blue sky.

Finance

Public and private investments are required to finance hard and social infrastructure. This process will take time, needs to be aligned with nexus areas of development, and will affect national economies. To enable the energy transition, global and national long-term sustainable funding is required.

Economy

We support local economies to realize a just energy transition where the benefits of the transition are distributed evenly across people and society, and the potential negative impacts of the transition are minimized for the poorest and most vulnerable communities.

Governance

Conventional governance is falling short in addressing today’s complex energy challenges. We need to pay attention to the broader system that may span across sectors and levels. Countries will require governance frameworks to work together to support and address these energy challenges.

Social Protection

Ensuring strong social protection systems for energy transition is critical for delivering on UNDP’s energy ambition. UNDP’s significant intersectional expertise will be critical to bridge the silos by finding non-traditional pathways to tackle the complex energy challenges of our member countries.

Women training to be solar engineers in Peru

Gender Equality

Gender equality is a precondition to advance human development, create inclusive and sustainable economies and reach a fair and just energy transition.

Featured projects

Algeria

We support the Algerian Government on an energy transition framework law, initially by providing indications on an energy transition roadmap by elaborating key milestones in the process.

UNDP in Algeria

Mauritania

We help to the government of Mauritania to develop an approach on green hydrogen and global public-private partnership to address the challenge of energy transition.

UNDP in Mauritania

Iraq

We work with the government of Iraq to design and implement de-risking and innovative financial mechanisms for loan financing from the Central Bank of Iraq to implement renewable energy projects in the context of a just energy transition.

UNDP in Iraq

Resources and tools

DREI: Derisking Renewable Energy Investment Framework

The Derisking Renewable Energy Investment (DREI) Framework is an innovative, quantitative framework to assist policymakers in developing countries to cost-effectively promote and scale-up private sector investment in renewable energy.

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Cimate Promise

The Climate Promise supports 120 countries to reduce their greenhouse gas emissions and meet the challenges of climate change.

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Don't Choose Extinction

UNDP's campaign calling to reform fossil fuel subsidies.

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Carbon Payment for Development

This new facility aims to incentivise private investments into countries' Nationally Determined Contribution targets and development objectives.

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High-Level Dialogue on Energy Theme Report on Energy Transition (2021)

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Our work areas