We help to design, promote and implement innovative business models and financial mechanisms to address market barriers to the scale-up of sustainable energy solutions. 

Access to finance is critical to enabling sustainable energy deployment. The thematic debt market is already enabling trillions to be channeled towards the green, resilient and inclusive economy of the future globally – yet some barriers to its tremendous potential remain, particularly in emerging markets. Also, existing fossil fuel energy systems are often deeply ingrained, making the transformation difficult, but we are on the cusp of a tipping point for an energy transition. 

To address these barriers, UNDP provides services to support the structuring of innovative business models and financial instruments to accelerate energy transition, including the implementation of innovative energy-as-a service models for the provision of sustainable energy services to health facilities and the design of financial instruments such as payment guarantees, receivable financing, performance/results-based financing, social and development impact bonds. 

By adopting a ‘future-smart’ approach to development – mobilizing innovative financial mechanisms, partnerships with governments and the private sector, as well knowledge and capacity building to advance integrated development outcomes that support progress on multiple SDGs – UNDP aim to harness the great potential of innovative financing and business models to unlock the investment necessary for the widespread adoption of sustainable energy and support countries to facilitate the achievement of reducing emissions, mobilizing private green finance, providing value for money for donors, generating new projects in underserved communities.