Uruguay

Challenge

Although the energy power matrix is "clean" in Uruguay, the country's primary energy matrix is still about 37% fossil fuel based. The industry and transportation sectors are still largely reliant on fossil fuels, emit a significant amount of carbon dioxide, and need a second energy transition to become clean industries. In this new decade, the Government of Uruguay aims to implement a second energy transition, which is seen as an opportunity and driver to achieve further economic and social development goals. The challenges are decarbonizing key economic sectors and improving the efficiency of the power system by accessing innovative technologies and affordable capital.

Innovation

The Programme seeks to support Uruguay’s 2nd energy transition by decarbonizing the industry and transportation sectors, securing universal access to renewable energy, and spurring innovation and competitiveness in the energy sector. The Renewable Energy Innovation Fund is a blended finance window for green transition projects coupled with a technical assistance facility. A Technical Assistance facility will also be created to support companies as they validate second energy transition technologies and innovative business models. Beyond Uruguay, this program will have a strong demonstrative effect on innovative financing for developing countries.

SDG Impact

This programme will improve Uruguay's environmental  sustainability by helping  deploy  low  carbon  technologies  and decarbonizing the industry and transportation sectors. It will also promote social and gender inclusivity, through increasing vulnerable groups' access to energy by improving connections, and  women's participation in the renewable energy economy. Targets of the programme include: 101,122 GHG emissions reduced; achievement of 545% NDC commitments on electric buses and 91% in electric utility fleet; 5% energy-cost reduction in invested assets; 10% increase of women in managerial positions in invested assets; 99.9% of population with access to electricity; and 63% of renewable energy share in energy consumption.

Brief Description

Uruguay has recently put in place a number of sectoral and intersectoral strategies that contribute towards SDG implementation, although an official planning framework linking to the SDGs is yet to be developed. The main goal of the Joint Programme is to create an ecosystem that allows the private, public and international cooperation sectors finance and implement together transformative strategies for SDG acceleration. To achieve this, the programme will work on four key interlinked areas, each one contributing to the development of an Integrated National Financing Framework that helps organize the actors, capacities and governance of a development financing ecosystem.

Approach

The four interlinked areas to ensure the objectives of the programme are: (i) awareness raising and capacity building essential to shifting perceptions; (ii) creation of the dialogue spaces to enable a shift in culture, attitudes and the collaborative definition of Uruguay’s sustainable development agenda; (iii) development and testing of investment vehicles that address the financing needs, levels of risk, size and investment periods of both investors and projects alike; and (iv) developing and agreeing on a common reporting and accounting framework and data management protocols adapted to internationally approved standards, for the monitoring, and reporting of impact and progress towards the SDGs in Uruguay that will enable evidence- based policy making and investment allocation.