Summary 

The Accelerating Maldives’ Transition to Renewable Energy Joint Programme supports the Government of Maldives in unlocking scalable, market-based solutions to advance its energy transition and climate commitments. Implemented by UNDP and UNCDF with funding from the Joint SDG Fund, the programme focuses on addressing structural barriers that limit renewable energy deployment, particularly fiscal constraints, weak private sector participation and limited access to innovative financing. By strengthening national financing mechanisms, developing blended finance instruments, and improving institutional readiness, the programme aims to catalyse investment in renewable energy across islands. It contributes directly to national targets under the Maldives Energy Policy and NDCs, while advancing SDGs 7, 11, and 13 and UNSDCF Outcome 3.

Background 

Despite strong political commitment and ambitious targets—most notably achieving 33% renewable energy generation by 2028—the Maldives’ energy transition has progressed slowly. High public debt, limited fiscal space, and reliance on concessional financing have constrained the Government’s ability to scale renewable energy investments, especially in outer islands. While IFIs and development partners have supported individual projects, systemic challenges persist, including a lack of bankable project pipelines, underdeveloped risk-sharing mechanisms, and limited capacity of public trust funds to mobilize private capital. In response, UNDP and UNCDF undertook a joint energy mission in early 2024 to identify structural bottlenecks and opportunities for reform. This JP was designed as a catalytic intervention to shift from project-by-project financing towards sustainable, blended finance approaches that can crowd in private investment and accelerate the energy transition at scale. 

Project Outcomes 

  1. Market-based renewable energy financing options identified 

Innovative instruments are assessed and proposed to support renewable energy expansion under constrained fiscal conditions. 

  1. Strengthened governance and financing role of public trust funds 

National trust funds are supported to evolve towards blended finance and investment mobilisation functions. 

  1. Improved institutional readiness for large-scale climate finance 

Public institutions are better positioned to structure bankable projects and attract private and international financing. 

National Partner: 

Ministry of Tourism and Environment 

Donor and Funding: 

UN Joint Programme 

Total Resource Mobilization 

Project Duration: 2024-2025 


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Download Grievance Redress Mechanism for Energy JP: Accelerating Maldives transition to Renewable Energy (01003751)
Annex 1 - Grievance Redress Registering and Monitoring Form