Development Account Projects
Promoting Energy Efficiency Investments for Climate Change Mitigation and Sustainable Development
Developing countries and countries with economies in transition face serious challenges in attracting private investments in energy efficiency. There are several reasons for this as well as possible solutions. First, dedicated sources of financing for energy efficiency are lacking and local banks are generally unfamiliar with such investments. This requires the creation of opportunities for banks and commercial companies to invest in energy efficiency and renewable energy projects through the development of dedicated public-private partnership investment funds.
Secondly, local experts lack adequate knowledge and experience in identifying and formulating energy efficiency investment project proposals. There is a need to develop skills in the private and public sectors at the local level to identify, formulate and implement energy efficiency and renewable energy investment projects. Thirdly, in the absence of policy and institutional support, private investors are not motivated to finance energy efficiency projects. This requires specific assistance to municipal authorities and national Governments to introduce reforms needed to support these investments.
A number of countries worldwide have expressed their interest in adopting energy efficiency measures in sectors with high carbon dioxide emission levels. For this project, each United Nations regional commission would select pilot countries that are (a) considering energy efficiency challenges as a priority of their national policies and services and (b) seeking to participate in the project (these will be countries with developing energy efficiency markets and products). A regional approach to the project will optimize resources, create synergies and enable the building of a partnership among regional and international experts. Additional resources would have to be leveraged to replicate this project in other countries, in different parts of the world. Cooperation among all United Nations regional commissions and with UN-Energy is essential. While the project includes activities on policy reforms, the main focus will be capacity-building in the development of energy efficiency investment projects.The proposed project will be led by ECE and jointly implemented with other United Nations regional commissions and the Department of Economic and Social Affairs within the UN-Energy framework.
Strengthen capacities of developing countries and countries with economies in transition to attract investments in energy efficiency projects in the context of climate change mitigation and sustainable development
Improved capacity of national project developers, energy experts and middle level managers in developing countries and countries with economies in transition to develop energy efficiency investment projects in private and public sectors
Improved regulatory and institutional framework for promotion of new financing mechanisms for energy efficiency projects
Increased financing for investments in energy efficiency projects, including through the innovative financing mechanisms.