Apply Now: Energy Investments to Reduce Deforestation (Congo DR)

Deadline: 31-Dec-2026

The Energy Investments for Reducing Deforestation in the DRC/Sustainable Energy 2 Program is a UNCDF initiative supporting clean energy investments in the Democratic Republic of Congo (DRC). Funded by CAFI and FONAREDD, the 2026–2030 programme provides financial support of USD 500,000 to USD 10 million for eligible energy projects, businesses, and financial institutions that can reduce dependence on unsustainable wood fuel and accelerate clean energy adoption. The programme focuses on clean cooking, renewable energy for agroforestry and agri-food activities, sustainable charcoal, and financing mechanisms that help households and businesses adopt cleaner energy technologies.

About the Sustainable Energy 2 Program

The Sustainable Energy 2 Program is the second phase of UNCDF’s work to promote sustainable energy investment and reduce deforestation in the DRC. The programme runs from 2026 to 2030 and builds on results from earlier interventions. Its central objective is to mobilize public and private capital toward energy solutions that can: Reduce reliance on traditional wood fuels. Reduce demand for unsustainable charcoal and firewood. Increase access to clean cooking fuels and technologies. Expand renewable electricity in high-deforestation areas. Create economic opportunities for women and girls. Why the Program Matters The DRC faces significant deforestation pressures associated with the use of wood fuel and charcoal. Traditional cooking fuels can also create serious health and environmental challenges, particularly for women and girls who often carry a disproportionate burden of household energy use. The programme therefore links clean energy investment, forest protection, climate action, health, and economic development. By increasing the availability and affordability of alternative energy sources, the programme aims to reduce pressure on forests while supporting businesses and communities with more sustainable energy solutions. Key Investment Areas The Sustainable Energy 2 Program focuses on three primary investment areas, alongside financing for institutions that can expand clean energy adoption. LPG Infrastructure The programme supports investments in liquefied petroleum gas (LPG) infrastructure that can improve the supply and distribution of cleaner cooking fuel.

Potential investments may contribute to:

Increasing LPG availability. Strengthening LPG supply infrastructure. Improving distribution networks. Supporting clean cooking fuel markets. Reducing dependence on traditional wood-based cooking fuels. The objective is to create more reliable supply conditions that enable households and businesses to shift toward cleaner cooking options. Renewable Energy for Agroforestry and Agri-Food Activities The programme supports the electrification of agroforestry and agri-food enterprises and communities located in areas experiencing high deforestation pressure. These investments can help businesses and communities replace traditional energy sources with cleaner electricity while supporting local economic activity. Clean Cookstoves and Sustainable Charcoal Another priority is the development of businesses and infrastructure for cleaner cooking solutions. The goal is to increase access to cooking technologies and fuels that generate fewer emissions and reduce pressure on forests. Support for Financial Institutions The programme is not limited to direct energy projects. It also supports DRC-based financial institutions and financial intermediaries that can help households and businesses access financing for clean energy technologies and fuels. Financial institutions may use programme support to strengthen their capacity to provide financing to: Small and medium-sized enterprises (SMEs). Corporates. Households. Clean energy businesses. Other eligible energy-sector customers. This financial ecosystem approach is intended to make clean energy investment more scalable and sustainable. Funding Available

Applicants may request between:

Minimum: USD 500,000

Maximum: USD 10 million

The exact amount and type of support will depend on the applicant’s: Stage of development. Business model. Investment requirements. Financial position. Expected environmental impact. Expected development impact. Capacity to implement the proposed investment. The programme is designed to use different financial instruments rather than a single standard grant structure. Types of Financial Support Depending on the project and applicant, support may include: Concessional debt Guarantees Reimbursable investment grants Non-reimbursable investment grants in selected cases The appropriate financial instrument will be determined according to the project’s characteristics, risk profile, development stage, and expected impact. Investment Duration Programme support can generally last between two and five years. Longer financing periods may be considered for capital-intensive projects that require additional time to develop, construct, operate, or achieve their intended impact. Applicants should therefore provide a realistic implementation and investment timeline. Who Is Eligible? The programme is open to eligible organisations and businesses operating in the Democratic Republic of Congo whose activities align with the programme’s clean energy and deforestation-reduction priorities.

Potential applicants include:

Energy projects. SMEs. Corporates. Financial institutions. Financial intermediaries. Clean energy technology businesses. Other eligible entities operating within the programme’s priority sectors. Applicants must demonstrate alignment with at least one of the programme’s investment priorities. What Types of Projects Are a Good Fit? Projects are particularly relevant when they contribute directly to reducing dependence on unsustainable wood fuel.

Examples include:

LPG supply and distribution infrastructure. Solar mini-grids or power plants serving productive activities. Micro-hydropower systems. Renewable e