|  In developing countries, funding to support the implementation of renewable energy typically comes from a variety of multilateral, bilateral, and private sector development organizations. The World Bank Group, the Global Environment Facility (GEF), and the German Development Finance Group (KfW) provide the majority of this funding, and dozens of other donors and programs provide the rest.
In addition to the direct investment, developing countries receive about US$500 million each year as development assistance grants for renewable energy projects, training, and market support. Much of this assistance has been used to fund policy analysis, economic assessment, market and business development, project feasibility studies, financing mechanisms, technology improvements, and capacity building, and sometimes to cover partial incremental costs of renewable energy projects. The Global Environment Facility (GEF) is one of the largest funding sources for renewable energy. Over the past decade, GEF has provided over a billion dollars for more than 140 renewable energy projects in developing countries. It was established in 1991 to help developing countries fund projects and programs that protect the global environment. GEF grants support projects related to biodiversity, climate change, international waters, land degradation, the ozone layer, and persistent organic pollutants. The GEF provides grants under 15 operational programs (OPs). Four of these deal with climate change, and two deal specifically with renewable energy: - OP6 - Promoting the Adoption of Renewable Energy by Removing Barriers and Reducing Implementation Costs
- OP7 - Reducing the Long-Term Costs of Low Greenhouse Gas Emitting Energy Technologies
In addition to the World Bank Group, the other multilateral development banks include, European Bank for Reconstruction and Development, Asian Development Bank, Inter-American Development Bank, and the African Development Bank. Information on other multilateral development institutions can be found at this WBG link. Several United Nations organizations are active in the promotion of renewable energy. UNDP’s Energy and Environment Practice promotes access to sustainable energy services as an essential development strategy. UNEP's renewable energy activities focus on the needs of developing and transition economies in various facets of renewable energy technology research, development, and commercialization. UNEP’s Sustainable Energy Finance Initiative (SEFI) is a platform providing financiers with the tools, support, and global network needed to conceive and manage investments in the complex and rapidly changing marketplace for clean energy technologies. UNIDO focuses on rural energy for productive use. The United Nations Framework Convention on Climate Change (UNFCCC), signed over a decade ago by most countries, is an international treaty that focuses on what can be done to reduce global warming and to cope with its consequences. The Kyoto Protocol is a legally binding measure under the treaty that requires GHG emission reductions by signatories and authorizes the Clean Development Mechanism (CDM). CDM allows projects in developing countries that reduce greenhouse gas emissions below current practice to qualify for emission reduction credits that can be sold to industrialized countries that have binding reduction targets under the Kyoto Protocol. For more information on CDM, how a project qualifies, how it obtains emission reduction credits, who are the buyers, what it adds to project viability, etc. click here Bilateral development banks and agencies include the following institutions. Several foundations and NGOs provide funds and manage programs directed at promotion of renewable energy, such as the UN Foundation, Shell Foundation, and the Energy Foundation. 
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