All recent reviews of progress toward SDGs in the UNECE region show that we are not where we need to be to meet the Paris Agreement by 2030. One of the main obstacles remains the lack of sustainable financing, both in terms of the overall capital flows and access to financing under competitive conditions. Only a small fraction of the investments needed for energy transition (SDG 7) and promotion of decent work and economic growth (SDG 8) have been directed toward the region’s 17 Programme Countries. The main reasons for this shortfall include:
A lack of alignment and mutual understanding between project sponsors and investors.
A perceived high risk of operating in these countries due to political, economic, or commercial reasons.
The complexity of structuring suitable financing solutions in fragmented markets, often characterized by smaller-scale projects.
To address these challenges, UNECE partnered with the United Nations High-Level Climate Champions (Climate Champions) and launched several initiatives over the past three years. The goal was to create a platform for project sponsors and financiers to connect, exchange information, and collaborate on financial solutions for tangible investment projects.
The process began with comprehensive desk research and analysis of key projects in the region, alongside developing a global database of financiers and investors interested in transition sectors. This developed into building a pipeline of projects at various stages of development, each requiring tailored financial solutions—including seed funding, equity capital, loans and insurance products. In collaboration with the Climate Champions, UNECE also strengthened partnerships with major international financial institutions, including with the World Bank, the European Investment Bank, and the European Bank for Reconstruction and Development. Partnerships with regional financial institutions, including with the Asian Development Bank and the Eurasian Development Bank, also strengthened to further advance these objectives.
In 2024, UNECE launched a public call for projects in the 17 Programme Countries, leveraging on diverse communication channels to spark interest across sectors including water treatment, renewable energy, e-mobility, sustainable technology manufacturing and more. This generated substantial interest and resulted in 245 climate projects being identified, filtered and categorized. Each project was assessed based on its unique business model, financial performance, sector relevance, thematic focus, and anticipated climate and SDG impacts. From this pool, three standout projects were selected and presented at the Regional Sustainable Finance Forum, held on October 8th as part of the Hamburg Sustainability Conference. This event brought together over 100 participants, including international policymakers, corporations, and financial institutions including multilateral development banks, development financial institutions, investors and commercial banks.
The three selected projects from the UNECE region have already secured partial funding and are seeking an additional $2.6 billion USD to reach completion. The projects are:
Inobat – Project Lion Battery Factory;
Ni-CAT- Novel Cathode Active Materials;
TGS – a 50MW Solar Power Plant.
Project teasers, detailing SDG contributions and climate impacts, are publicly available for stakeholders and potential investors27.
27 2024 Climate Project Teasers: Regional Platforms for Climate Projects
The projects and their sponsors also underwent training on the UNECE Public-Private Partnerships and Infrastructure Evaluation and Rating System (PIERS) which supports comprehensive assessment of projects’ impact on achieving the SDGs.
Subsequently, the projects and their sponsors were prominently showcased at COP29 in Baku during events with financiers and policymakers. For project sponsors, COP29 offered international visibility, fostering valuable connections and alignment with the global climate agenda. Public communication efforts targeted financiers, parties to the Paris Agreement, and broader stakeholders, and included the “Top of the COP” which had garnered over 13,000 views during COP29.28
28 High-Level Climate Champions
The significance of this Regional Climate Finance Forum was further underscored in the Yearbook of Global Climate Action 2024,29 a document presented by non-state actors to the parties of the Paris Agreement at COP29. Reflecting its critical value, the initiative has received formal endorsements from the COP27, COP28 and COP29 Presidencies and was presented to parties involved in the UNFCCC’s Mitigation Work Programme.
29 Yearbook of Global Climate Action 2024
Over the years, UNECE and the Climate Champions have analyzed over 400 project proposals and supported more than 40 projects with a combined value of approximately 15 billion USD. To date, around 19 projects have successfully reached full or partial financial closing, amounting to nearly 1.9 billion USD.
The collaboration between UNECE and Climate Champions underscores the vital importance of multi-stakeholder cooperation where each actor contributes unique strengths and expertise. This partnership also highlights the effectiveness of a bottom-up approach, focusing on concrete, real-world examples to drive meaningful progress.
As we move forward, UNECE remains hopeful that the financing gap will steadily narrow, enabling us to accelerate the transition toward a sustainable and resilient future in the coming years.
United Nations Economic Commission for Europe
Palais des Nations, Geneva
