Environmental Finance

Environmental Finance
Photo: Lee Cando

UNDP helps developing countries catalyze investment into the green technologies, practices and enterprises that will make low emission, climate resilient environmentally sustainable development not only possible, but also economically attractive. To achieve this, we help country partners develop their capacity to put in place the right mix of regulatory and financial incentives, remove institutional and policy barriers, and create enabling environments that attract and drive private sector investment into green development. In doing this, UNDP assists partner countries to access, combine and sequence resources from a wide range of funds, and financial instruments and mechanisms. These include:

Global environment trust funds which have their own governance bodies, and programming strategies - such as the Global Environment Facility (GEF), and the Multi Lateral Fund for the Implementation of the Montreal Protocol (MLF)

UNDP established environment facilities which assist countries in accessing new sources of environment market finance – such as the Green Commodities Facility, and the MDG Carbon Facility;

UN/UNDP Multi donor trust funds managed by the UN – such as UN-REDD and the UNDP Environment and Energy Thematic Trust Fund (EE TTF)

Operationally, UNDP works with countries to develop programmes/projects and to access the required non-core resources, around the following six technical areas:

  1. Low Emission Climate Resilient Development Strategies
  2. Communities
  3. Ecosystems and Biodiversity
  4. Water and Oceans Governance
  5. Energy, Infrastructure, Transport and Technology
  6. Chemicals

For more information on Environmental Finance, please contact efs@undp.org.

Related Publications and Resources

  • A Framework for Climate FinanceJul 14, 2010This paper outlines a climate finance framework to assist developing countries to move to low-emissions, climate-resilient growth paths. UNDP is proposing a country-driven, multi-stakeholder climate finance framework to assist developing countries to scale up efforts to address climate change in a way that strengthens and advances national development priorities.

  • Adapting to CC: UNDP-GEF Initiatives Financed by the LDCF, SCCF and SPAApr 1, 2011This Report focuses on principles underlying the UNDP-GEF approach to adaptation programming and the key processes involved in removing barriers to successful adaptation measures.

  • Applying Climate Information for Adaptation Decision-MakingApr 1, 2011This guidance document intends to provide countries with a practical tool on using climate information in their decision-making processes. This guide addresses these issues of adaptation planning under uncertainty of observed and projected climate change.

  • Blending climate finance through national climate fundsSep 13, 2011This guidebook presents a process for designing and establishing an NCF and provides a simple, robust and transparent method for meaningful stakeholder engagement.

  • Catalyzing Climate FinanceCatalyzing Climate FinanceMay 1, 2011This guidebook is offered as a primer to countries to enable them to better assess the level and nature of assistance they will require to catalyze climate capital based on their unique set of national, regional and local circumstances.