Carbon finance and the MDGs

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Climate change risks to development

Climate change has emerged as one of the most important issues facing the global community in the 21st century. It poses a serious threat to development and poverty reduction, and its effects are most strongly by the poorest people in the least developed countries, who rely on the natural environment for their livelihoods.

Climate change threatens to significantly undermine efforts to achieve the Millennium Development Goals (MDGs). The Millennium Development Goals are eight targets agreed to by UN member states for diminishing global poverty and achieving, by 2015, major advances in health, education, environment and equality. The MDGs represent an unprecedented commitment by the UN's member states to comprehensively address poverty in its many forms.

Linking carbon finance to the MDGs

Linking carbon finance to the MDGs

MDG Carbon’s projects reduce greenhouse gas emissions while providing direct contributions to the MDGs. Many emission reduction projects have significant community benefits that are intrinsically tied to the project type. For example, energy-related projects in low income countries may reduce the need for collecting firewood — an activity often performed by women or girls — and thereby contribute to MDG Three, "Promote Gender Equality and Empower Women."


Goal 1: Eradicate extreme poverty and hunger Energy for local enterprises; lighting to facilitate income generation; employment opportunities
Goal 2: Achieve universal primary education Reduce time spent by children on energy provision; lighting for reading; energy for educational media
Goal 3: Promote gender equality and empower women Modern energy services free girls and women's time spent on energy provision
Goal 4: Reduce child mortality Energy supply for health clinics; reduced air pollution from traditional fuels
Goal 5: Improve maternal health Energy supply for health clinics; reduced air pollution from traditional fuels
Goal 6: Combat HIV/AIDS, malaria, and other diseases Energy supply for health clinics; cooling of vaccines and medicines
Goal 7: Ensure environmental sustainability Substitution of non-renewable biomass; waste management; afforestation and/or reforestation

In Focus
NAMA on Rural Electrification in Vanuatu

The Ministry of Climate Change and Natural Disasters and UNDP MDG Carbon have issued the Nationally Appropriate Mitigation Action (NAMA) on Rural Electrification in Vanuatu.   

The overall target of the NAMA is to support Vanuatu in achieving the goal defined in the National Energy Road Map (NERM), namely to provide access to electricity to all households in Vanuatu. The NAMA will reduce GHG emissions through the replacement of fossil fuels with renewable energies. The NAMA will also contribute to Sustainable Development (SD) benefits, such as improvement of the situation of groups with specific vulnerabilities, women and the poor.

Finance Structure and its Management for a Rural Electrification NAMA
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