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Political risk insurance – key trends
PRI is a type of guarantee that specifically safeguards investment abroad against political risk either directly covering losses on international equity investments or insuring investors who have provided loans to finance international projects.
Introduction
The investment gap to achieve the SDGs in developing countries by 2030 has widened from $2.5 trillion to approximately $4 trillion per year between 2014 and 2023 (UNCTAD 2023a).
Way forward and policy recommendations
This report explored key trends and challenges in PRI and examined how PRI providers can address emerging risks (including those related to climate change supply chain disruptions and geopolitical tensions) while fostering investment aligned with the SDGs.
Acknowledgments
This report was prepared under the overall guidance of Nan Li Collins Director of the UNCTAD Division on Investment and Enterprise (DIAE) by a report team under the supervision of Massimo Meloni and comprised of Mathilde Closset and Andreas Klasen (UNCTAD consultant). Research support and inputs were provided by Dafina Atanasova Madden Hall (intern) Heemin Kang Guoyong Liang Abraham Negash Changbum Son (secondee) Christiane Stepanek and Astrit Sulstarova.
Note
Under its overall mandate on trade and development the United Nations Conference on Trade and Development (UNCTAD) serves as the focal point within the United Nations Secretariat for all matters related to foreign direct investment (FDI). Its work is carried out through intergovernmental deliberations research and analysis and technical assistance activities as well as seminars workshops and conferences.
Derisking Investment for the Sustainable Development Goals
The Role of Political Risk Insurance
This report explores the role and significance of political risk insurance (PRI) in fostering FDI in developing countries particularly in LDCs. It examines the main challenges and opportunities faced by PRI providers and highlights five policy recommendations to enhance the role of PRI to contribute more effectively to the SDGs.
Acknowledgements
The present compendium of case studies on digitalization in energy in the United Nations Economic Commission for Europe (UNECE) region is the outcome of the activities of the Task Force on Digitalization in Energy in 2023–2024 under a dedicated research track that envisaged the development of national case studies.
Conclusions and recommendations
The theoretical background provided in the publication and the analysis of case studies lead to the following conclusions.
Introduction
United Nations Economic Commission for Europe (UNECE) recognizes that digital solutions not only optimize energy systems but also enhance transparency efficiency and resilience all of which are critical for addressing the contemporary energy challenges and accelerating the transition to more sustainable energy systems.
Compendium of Case Studies on Digitalization in Energy in the UNECE Region
This publication offers an exploration into examples of the transformative power of digital technologies within the energy sector across the UNECE member states and beyond. Aiming to cover the whole energy value chain it showcases how digitalization is reshaping the energy landscape worldwide driving efficiency and sustainability of the energy systems. From smart grids and energy management systems to predictive analytics and blockchain applications the case studies discuss benefits and challenges of integrating digital technologies into energy systems and highlight lessons learned from such transformations. With contributions from leading experts in the area this publication synthesizes insights from a range of contexts. It is designed to facilitate informed decision-making and to serve as a knowledge hub for stakeholders who seek to navigate the complexities of digital transformation in the energy sector in the UNECE region and beyond.
Foreword
The increasing complexity of the energy sector due to growing decentralized intermittent generation the influx of electric vehicles and other smart assets at the grid edge requires a combination of digital innovations to manage it.
Grid management architecture: Interoperability and resilience
This case study addresses the challenge of distributed energy resources (DERs) integration to support grid resilience identifying key infrastructure requirements assessing policy developments and deriving recommendations.