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

  • Ensuring Gender Equity in Climate Change FinancingJan 1, 2010

  • Formulating Climate Change ScenariosFormulating Climate Change ScenariosApr 1, 2011This guidebook builds on a large range of UNDP’s ongoing initiatives to support adaptation to climate change. This series is intended to empower decision makers to take action, and to prepare their territories to adapt, and hopefully thrive, under changing climatic conditions.

  • MDG Carbon Facility BrochureSep 1, 2007To help leverage the potentially significant benefits of carbon finance for the developing world, UNDP established the MDG Carbon Facility, an innovative mechanism for the development and commercialization of emission reduction projects. The brochure outlines the work of the MDG Carbon Facility.