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.
- Support sustainable charcoal production.
- Strengthen clean energy businesses.
- Improve access to clean energy finance.
- Reduce greenhouse gas emissions.
- Improve health and living conditions.
- 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.
Eligible energy solutions can include:
- Micro-hydropower plants.
- Solar power plants.
- Renewable electricity systems.
- Productive-use energy infrastructure.
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.
Support can include:
- Assembly plants for high-tier clean cookstoves.
- Industrial-scale sustainable charcoal production.
- Clean cooking technology businesses.
- Production and distribution infrastructure.
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 energy for agro-processing enterprises.
- Clean cookstove manufacturing or assembly.
- Sustainable charcoal production.
- Clean energy financing facilities.
- SME financing for clean energy technologies.
- Household clean cooking finance.
- Energy projects in high-deforestation areas.
Projects should demonstrate a credible connection between investment and reduced deforestation, clean energy adoption, or sustainable energy access.
Key Development and Environmental Outcomes
The programme seeks to generate both environmental and socioeconomic benefits.
Expected outcomes include:
- Reduced deforestation.
- Lower consumption of unsustainable wood fuel.
- Increased use of clean cooking technologies.
- Greater access to renewable energy.
- Reduced energy-related emissions.
- Improved household health.
- Increased clean energy investment.
- Stronger clean energy businesses.
- Increased access to finance.
- New economic opportunities for women.
- Greater participation of women in the energy sector.
Focus on Women and Girls
Gender equality is an important dimension of the programme.
Women and girls can be disproportionately affected by traditional household fuel use, including exposure to indoor air pollution and the time burden associated with collecting and using traditional fuels.
The programme therefore seeks not only to improve access to cleaner energy but also to support women’s economic empowerment in the energy sector.
Projects that demonstrate meaningful benefits for women and girls can help advance both energy and gender-related development objectives.
How the Application and Investment Process Works
The programme follows an investment-oriented process rather than a simple grant application model.
Submit an Initial Application
Applicants first provide information about their organisation, project, business model, financing requirements, and expected development impact.
The application should demonstrate clear alignment with the programme’s priority sectors.
Initial Review
UNCDF conducts an initial assessment to determine whether the proposal fits the programme’s objectives and eligibility requirements.
Factors considered can include:
- Sector alignment.
- Business model.
- Investment requirements.
- Development impact.
- Environmental impact.
- Applicant capacity.
- Financial viability.
Due Diligence
Shortlisted applicants undergo a more detailed due diligence process.
This stage can examine the applicant’s:
- Financial position.
- Governance.
- Business model.
- Operational capacity.
- Project feasibility.
- Risk profile.
- Legal status.
- Expected environmental and social impact.
Investment Decision
Following due diligence, UNCDF makes the final investment decision.
The amount and financial instrument are tailored to the project and applicant.
Fund Deployment
Once an investment is approved, funds are deployed according to pre-agreed conditions.
These conditions establish how financing will be used and what requirements the recipient must meet.
Post-Investment Monitoring
UNCDF conducts oversight after deployment to assess whether funds are being used effectively and whether the project is delivering its intended development and environmental results.
How to Prepare a Strong Application
Applicants should demonstrate both commercial viability and measurable development impact.
A strong proposal should clearly explain:
- What energy problem the project addresses.
- How the project will reduce dependence on unsustainable wood fuel.
- Which communities or businesses will benefit.
- How much financing is required.
- Why the requested financial instrument is appropriate.
- How the business will generate sustainable revenue.
- What environmental outcomes are expected.
- What social and economic benefits will be created.
- How women and girls will benefit where relevant.
- How the project will scale.
- What risks could affect implementation.
- How those risks will be managed.
Applicants should avoid presenting the proposal as a conventional donation request. The programme is structured around investment and financial sustainability, so applicants should demonstrate a credible pathway toward long-term operations and impact.
Common Mistakes to Avoid
Applicants should carefully check their proposal before submission.
Common weaknesses may include:
- Proposing activities outside the programme’s three priority investment areas.
- Failing to demonstrate operations or relevance in the DRC.
- Providing insufficient evidence of commercial viability.
- Requesting financing without explaining how the amount was calculated.
- Ignoring the programme’s deforestation-reduction objective.
- Failing to quantify expected environmental or social impact.
- Providing an unrealistic implementation schedule.
- Underestimating regulatory or operational risks.
- Failing to explain how financing will be repaid where debt is proposed.
- Providing incomplete organisational or financial information.
Tips for Applicants
Applicants can improve their proposals by:
- Clearly linking the project to DRC deforestation challenges.
- Quantifying expected clean energy adoption.
- Estimating potential reductions in wood fuel or charcoal consumption.
- Demonstrating demand for the proposed product or service.
- Providing realistic financial projections.
- Explaining the scalability of the business model.
- Showing how the project benefits local communities.
- Integrating gender considerations into the project design.
- Providing a clear risk-management framework.
- Explaining how the investment will remain sustainable after UNCDF support ends.
Frequently Asked Questions
What is the UNCDF Sustainable Energy 2 Program?
It is a 2026–2030 UNCDF investment programme designed to mobilize clean energy finance in the Democratic Republic of Congo and reduce reliance on unsustainable wood fuel and charcoal.
How much funding can applicants request?
Eligible applicants can seek between USD 500,000 and USD 10 million, depending on their investment requirements, business model, development stage, and expected impact.
What types of financial support are available?
Support may include concessional debt, guarantees, reimbursable investment grants, and, in selected cases, non-reimbursable investment grants.
Who can apply?
Eligible applicants include energy projects, SMEs, corporations, financial institutions, and financial intermediaries operating in the DRC and aligned with the programme’s sectoral priorities.
What sectors does the programme prioritise?
The main areas are LPG infrastructure, renewable electrification of agroforestry and agri-food enterprises and communities, and high-tier clean cookstoves and sustainable charcoal production. Support is also available for financial institutions that enable clean energy financing.
How long can programme support last?
Support generally ranges from two to five years. Longer periods may be considered for capital-intensive investments.
Does the programme support clean energy financing for households and businesses?
Yes. The programme can support DRC-based financial institutions and intermediaries that expand lending to SMEs, corporations, and households for clean energy technologies and fuels.
Conclusion
The UNCDF Sustainable Energy 2 Program provides a major financing opportunity for clean energy businesses, energy projects, and financial institutions in the Democratic Republic of Congo. With potential support of USD 500,000 to USD 10 million, the programme is designed to accelerate investment in clean cooking, renewable electricity, sustainable charcoal, and clean energy finance.
The strongest opportunities are likely to come from projects that combine commercial sustainability with measurable climate, environmental, health, and socioeconomic benefits. Applicants should clearly demonstrate how their proposed investment can reduce dependence on unsustainable wood fuel, contribute to lower deforestation, expand clean energy access, and create lasting benefits for communities in the DRC.
