The UNECE region remains a significant source of global greenhouse gas (GHG) emissions, contributing to 34% of the world’s CO2 emissions from fossil fuel combustion. Infrastructure alone is responsible for a staggering 79% of all GHG emissions worldwide.
Sustainable and climate finance in infrastructure is crucial for the Sustainable Development Goals (SDGs). Public-Private Partnerships (PPPs) are an essential mechanism for countries to bridge the SDG-financing gap. Meeting the energy transition targets set by the Paris Agreement requires an annual investment of USD 5 trillion by 2030 in the energy sector alone.
To ensure PPP and infrastructure projects are aligned with the SDGs, the UNECE “PPPs for the SDGs” approach emphasizes creating value for people and value for the planet, focusing on the most vulnerable. UNECE’s flagship PIERS methodology assists governments, private companies, and financial actors in aligning their PPP and infrastructure projects with the SDGs, integrating climate change mitigation and adaptation measures in its evaluation and scoring process.
As part of the Regional Platform for Climate Projects, supported by UN Climate Change High-Level Champions and COP Presidencies, UNECE mapped 250 energy transition initiatives as part of the Sustainable Finance Forum 2024. From these, 10 projects from the Central Asia and the Western Balkans seeking financing of USD 15 billion, were shortlisted for showcasing at COP29.
Selected projects benefited from training on the PIERS methodology recently organized by UNECE, helping to strengthen their accountability, transparency and investor readiness. This training aimed to make these infrastructure projects more sustainable and attractive to investors, thus catalyzing capital to accelerate climate action and build resilient infrastructure for a sustainable future.
One notable project from Kyrgyzstan’s renewable energy pipeline was assessed using the PIERS methodology in May 2023. The newly PIERS-enhanced project attracted sustainable financing, and the project company selected to implement it has since been trained in using the PIERS methodology to ensure that the sustainability benefits deriving from PIERS continue throughout the project lifecycle.
Since its launch in 2022, the PIERS methodology has been applied to over 220 projects across 50 countries, covering sectors such as renewable energy, transport, waste management, smart cities, water and sanitation, education and healthcare. UNECE will continue to disseminate the PIERS methodology within UNECE and beyond, through demand-driven capacity building and policy advisory services to its member States.