The REIF aims to decarbonize the industry and transport sectors, ensure universal access to renewable energy, and boost the energy sector's innovation and competitiveness by reducing costs and increasing women's participation in the clean energy economy. The program has a significant demonstration effect on innovative financing for developing countries beyond Uruguay. The REIF introduces an innovative financial mechanism to leverage public-private financing and providing funding for new and emerging renewable energy technologies, ventures, and activities aligned with its objectives. Uruguay’s Renewable Energy Innovation Fund is central to driving these goals forward.
Innovative finance supports Uruguay’s transition to clean energy
Renewable Energy Innovation Fund (REIF)
Overview
Approach
The REIF trust fund’s comprehensive approach to sustainable investment is exemplified through its robust impact framework and strategic banking sector collaborations, aimed at driving significant progress towards the Sustainable Development Goals (SDGs).
REIF trust fund has developed an investment policy and impact strategy, including a detailed impact assessment methodology and tools. Building on an impact framework, the fund includes social and gender-related indicators.
Cooperation agreements set the foundation for collaboration in identifying, evaluating, and co-financing energy transition projects that contribute to SDG achievements. Seven cooperation agreements have been signed with major commercial banks in Uruguay, including BBVA, Heritage, Santander, Itau, HSBC, BROU, and Scotiabank.
4 years
Uruguay, Latin America and the Caribbean
Impact
The JP aims to decarbonize industry and transport, secure universal renewable energy access, and enhance energy sector innovation, reducing costs and boosting women's participation in the clean energy economy.
Key Indicators
SDGs:
UNIDO Priorities:
Thematic Area(s):
REIF is a model that generates success and one we want to see multiplied. It aligns global and national objectives of decarbonization, with the objective of private businesses to survive, grow, and be profitable, all while targeting triple impact; environmental, social, and economic.
Omar Paganini
Minister of Industry, Energy, and Mining of Uruguay
The REIF was envisaged to catalyze triple impact private financing and break with the traditional cooperation model that is no longer applicable to middle and high-income countries like Uruguay. It is a new way of creating public-private partnerships for development financing.
Manuel Albaladejo
Representative of UNIDO's office for the Southern Cone countries
Uruguay is an important country for us. UN agencies consider it for experimental projects due to its strong institutional setting stability, and reputation as a serious country.
Pablo Ruiz Hiebra
UN Resident Coordinator in Uruguay
Technology Used
REIF funds projects across four technological vertical: energy storage, electric mobility, power-to-X, and waste management
Catalytic Outlook
The REIF aims to sustain long-term investments in energy transition technologies by enhancing regulations, developing technological capacities. It fosters SDG-aligned financing, with strong replication potential in other countries and SDG areas.
Unique Solution Characteristics
It’s a financing window combining private capital and UN funds to support energy transition projects, with technical assistance to validate technologies and business models, driving Uruguay’s second energy transition by enhancing efficiency, sustainability, and decarbonization across key sectors.
N/A
Trainings, capacity building, technical assistance, knowledge transfer, financing
Related Links
- REIF Website
- Joint SDG website: Supporting Uruguay's second energy transition through blende…
- Joint SDG website: Catalytic Investment to Leverage Private Capital is the New …
- Joint SDG website: Innovative Finance for Clean Tech Solutions in Uruguay
- Joint SDG website: US$1 million to drive the Second Energy Transition in Uruguay
- UNIDO: Supporting Uruguay's second energy transition through blended finance: f…
- UNIDO: Renewable Energy Innovation Fund in Uruguay approves one million dollars…
- Relevant Media press release: “El País (Uruguay)” - July 2023
