In Montevideo’s bustling port, trucks are beginning to run on cleaner power, while across Uruguay, engineers are testing the country’s first autonomous charging station for heavy vehicles and laying the foundations for a pilot green hydrogen plant. These initiatives signal a significant transformation in how Uruguay is powering its future, reflecting the country’s commitment to a cleaner, more sustainable energy system.
This transition is supported in part by the Joint SDG Fund, which has committed over US$10.9 million to Uruguay through two major programmes. The first programme helped the government design an Integrated National Financing Framework, a unified plan to mobilize resources and track progress across all Sustainable Development Goals. The second programme focuses on creating an innovative financing vehicle to accelerate Uruguay’s Second Energy Transition, aiming to drive systemic change in clean energy adoption.
Central to this effort is the Renewable Energy Innovation Fund (REIF), a blended finance facility launched with support from UNIDO, UNDP, and UN Women. By combining concessional funds with private sector financing, the Fund creates a platform that shares risk and expands opportunities. Seven commercial banks, including BBVA, HSBC, Santander, and local institutions like Banco República, are part of this coalition, offering new credit lines to businesses working on electric transport, energy storage, waste management, and other clean energy solutions.
For entrepreneurs, the REIF provides loans and guarantees ranging from US$100,000 to US$1 million, supporting projects that advance Uruguay’s decarbonization goals. Already, the Fund has backed initiatives such as next-generation charging stations and green hydrogen production for cargo trucks. By 2025, the REIF is expected to mobilize an additional US$50 million in capital through banks and international financiers, amplifying the impact of its initial investments.
The Fund’s long-term vision aims to unlock between US$240 million and US$320 million in clean energy investment, transforming Uruguay’s economy and labor market. By integrating climate action with employment opportunities and gender-responsive financing, the initiative ensures that the benefits of the transition are widely shared, providing vulnerable populations with better access to clean energy, affordable transport, and new jobs in a low-carbon economy.
Uruguay is already a global leader in renewable energy, with over 90 percent of its electricity generated from clean sources. The Second Energy Transition seeks to go further by decarbonizing transport and industry, enhancing energy storage, and establishing Uruguay as a regional green hydrogen hub.
The Joint SDG Fund’s contribution extends beyond finance—it creates tangible human impact. This is evident in cleaner air for children in Montevideo, new opportunities for small businesses in green technology, and stronger community resilience in the face of climate change.
Related Posts
