“Renewables are the only way to ensure our future, bridge the energy access gap, stabilize prices, and guarantee energy security,” asserts António Guterres, United Nations Secretary-General.

Central to the Sustainable Development Goals (SDGs) is a fundamental component: energy.

In 2023, the UN Capital Development Fund (UNCDF) Energy initiative reaffirmed its commitment to advancing clean energy solutions. Through digital solutions and innovative financing mechanisms, UNCDF is ensuring that clean energy and cooking options are both affordable and attainable for the world's most vulnerable communities.

The results so far…

Since 2014, UNCDF Energy has dedicated itself to inclusive energy access, particularly in last-mile communities of Least Developed Countries (LDCs). Through a mix of investment, technical support, and policy engagement, the program boasts significant achievements, including:

• 100 investments in 82 private sector firms across 13 countries
• Over two million clean energy products and services distributed.
• Over 10.5 million individuals benefiting from clean energy.
• 2.8 million tonnes of CO2 emissions offset, and 600,000 tons of firewood saved.

These milestones notably advance SDG7 (Affordable and Clean Energy), SDG5 (Gender Equality), SDG13 (Climate Action), SDG15 (Life on Land), and SDG17 (Partnerships for the Goals).

A year of innovation and impact

The year 2023 has been a testament to impactful strategies and innovative approaches used by UNCDF:

Scaling Impact in Africa

Demonstrating a successful early-stage, risk-tolerant lending strategy, UNCDF effectively mobilized additional private capital for renewable energy businesses, especially small and medium sized enterprises (SMEs), in Africa. This approach has been notably impactful in the Democratic Republic of the Congo (DRC) and Zambia.

Bright Life's Expansion in Uganda

Bright Life, a social enterprise, made significant strides in bringing clean energy to off grid areas in Uganda, particularly in the newly established city of Arua. This has been crucial for communities awaiting electrification.

Safety and Solar Energy in Northern Uganda

The transformative power of solar energy solutions through personal stories, like that of Sandra Suubi in Uganda, highlighted the direct impact of clean energy on improving living conditions and safety in rural areas.

Empowering women in Burkina Faso with clean energy

The UNCDF Renewable Energy Fund for Resilience in Burkina Faso (FERR-BF) initiated activities to empower women via clean energy. These activities encompassed gender inclusion training for small and medium sized enterprises (SMEs) and financial institutions, facilitated by tools such as self-assessment questionnaires, templates for strategic action plans, and coaching sessions. Additionally, the program established a gender inclusion working group dedicated to discussing and developing technical skills programs that can foster a more inclusive clean energy sector.

Expanding Access in the DRC

From state-of-the-art LPG solutions by BBOXX to innovative financial partnerships with MFIs like Coopec AKIBA YETU, 2023 has been an important year in advancing clean energy and clean cooking access in the DRC. This work is part of the Incubation Challenge Fund of the Joint Program on the Sustainable Consumption and Partial Substitution of Wood Energy Program funded by the Central African Forest Initiative (CAFI).

Digital innovations for clean cooking

In 2023, UNCDF, in collaboration with the Clean Cooking Alliance (CCA), launched the Digital Innovation Challenge to boost financing in the clean cooking sector. The initiative fostered innovations that address barriers in finance and data accuracy across the clean cooking supply chain. The winners, announced in July, presented groundbreaking solutions that promise to revolutionize the sector and contribute to achieving universal access to clean cooking.

The end of the beginning…

The completion of Phase 1 of the FERR-BF marked a significant milestone. This innovative financing project, supported by the Grand Duchy of Luxembourg, focused on building an ecosystem of actors to develop sustainable clean energy solutions for vulnerable populations in Burkina Faso. The project has been instrumental in creating economic opportunities and enhancing resilience against climate change and political risks.

ICBD, a company supported by FERR-BF, has been installing solar pumping systems for women's groups, significantly enhancing the irrigation of fruits and vegetables. This innovation has led to a marked increase in agricultural yield, thereby boosting income. A customer shared their experience: "The implementation of drip irrigation using solar pumping has increased agricultural yields by more than 50 percent and reduced the water bill by the same amount. We went from ten tons of onions per hectare to 23 tons.”

Expanding presence and partnerships

2023 saw UNCDF forging and strengthening partnerships critical to its mission, including:

• Collaboration with the Clean Cooking Alliance and the African Guarantee Fund to mobilize US $100 million for clean cooking by 2026.
• Participation in the African Microfinance Week and European Microfinance Week, highlighting the importance of climate investing and sustainable, inclusive finance.
• The Bukavu Fair 2023, under the Central African Forest Initiative, was a significant event promoting sustainable cooking methods as alternatives to wood energy.

Looking ahead to 2024

Looking forward, UNCDF is poised to further its impact. By the end of 2024, the program will support an additional one million people in accessing clean energy solutions. Continuing collaboration with governments and the private sector will be crucial in increasing financial flows to innovative clean energy and cooking solutions. UNCDF's proven financial mechanisms and technical assistance will remain key drivers in attracting local financing and de-risking initial investments, ensuring that the journey towards sustainable energy access leaves no one behind.