UNCDF offers an array of solutions for LDCs and other developing countries in the specific areas of climate finance, clean energy, and biodiversity finance.

Climate Finance: UNCDF aims to deliver accelerated and enhanced volumes of financing and support for climate adaptation of vulnerable communities in LDCs. This would include a greater focus on supporting nature- based climate solutions and promoting green economies. By 2025, LoCAL is projected to expand across eligible countries and at least double the volume of finance mobilized, in particular through direct access to international climate finance. UNCDF will help to develop innovative structures that can increase finance flows for climate-related emergencies, e.g., risk insurance such as the Pacific Insurance and Climate Adaptation Programme and for climate-resilient green and smart cities. UNCDF is launching a global climate exchange-traded fund with the Global Investors for Sustainable Development Alliance.

Clean Energy: UNCDF aims to increase resilience in LDCs by supporting an energy transition agenda that emphasizes decentralized, renewable and clean energy projects and products that drive green growth. Net-zero emissions energy solutions that expand energy access and value addition are key elements of this approach. UNCDF promotes access to finance across energy value chains, from customer to enterprise to larger investments. UNCDF helps fill the energy SME financing gap through use of its financial instruments. It increasingly supports both solar and improved cooking business models with digital and other technologies to increase their bankability and to reach excluded populations. By 2025, UNCDF aims to support investments that allow 6 million people in at least 10 countries to access and benefit from clean energy. UNCDF investments are designed to contribute to wider energy market development, with an increased focus on productive use and local economic resilience and with strong connections to other key sectors.

Biodiversity Finance: Although nature provides up to 38 per cent of climate mitigation solutions, nature- based climate solutions receive only 3 per cent of global climate finance. UNCDF will look to support innovative initiatives that catalyse finance for integrating biodiversity conservation into business models and economic development. This includes the blended finance Global Fund for Coral Reefs, which supports business approaches to marine biodiversity protection. UNCDF will support instruments such as nature performance bonds or debt-for-nature swaps, including through blue or green blended finance schemes that leverage additional financing. UNCDF will continue to work closely with UNDP in defining, piloting and scaling up these types of biodiversity and ecosystem-based financing solutions. UNCDF will engage closely with UNDP and the wider United Nations development system to provide financing expertise and innovative solutions as part of integrated United Nations approaches to environmental crises, including to address the “triple planetary crisis” - the interlinked and cascading effects of climate change, biodiversity loss and pollution, as called for by the Secretary- General in “Our Common Agenda”.