Context:
Both public and, above all, private capital are needed if we are to achieve the UN Sustainable Development Goals (SDGs) and meet international climate targets. Overall, Senegal alone needs USD 13 billion between 2020 and 2030 in order to deliver its nationally determined contributions (NDCs) to the Paris Agreement. Financial markets have a key role to play by ensuring that public and private capital flows into socially and environmentally positive investments and measures that protect us against social, environmental and climate risks. Against this background, the challenge is to create a green financial market and a corresponding regulatory framework that can mobilise the investment needed to drive the environmentally and socially equitable transition of the Senegalese economy. Senegal’s financial markets lack the expertise required to identify the risks and harness the opportunities of green and socially equitable financing. At the same time, its strategic and regulatory frameworks are not sufficiently developed to manage environmental and social risks in financial markets or to direct capital into green projects on a large scale.
Objective:
Sustainable financing models are more firmly embedded in Senegal’s financial sector.
Approach:
The project works with the country's financial institutions to advise and develop the skills of policymakers. In this way, the project is helping to create a more enabling environment for a green and socially equitable financial market in Senegal. It also supports the efforts of partners in the financial sector to develop and use innovative and sustainable financing mechanisms.
Examples of project measures
• The project works with stakeholders to develop a strategy for sustainable financing.
• It supports the development of a classification system (taxonomy) for green economic activities and investments.
• The project also promotes and disseminates sustainable financing approaches in collaboration with financial institutions.