Projects

Our activities in Senegal are part of the Global Project Sustainable Economic Transformation and Sustainable Finance and the bilateral project Strengthening Sustainable Finance in Senegal

With the NDCs and the signing of the Just Energy Transition Partnership (JETP) in mid-2023, Senegal has set itself ambitious goals and concrete strategies to achieve sustainable economic growth. Senegal is also a pilot country of the Global Shield against Climate Risks and is a member of the International Platform for Sustainable Finance initiated by the EU. To achieve the ambitious goals set in these initiatives, Senegal requires a large-scale mobilisation of public and, above all, private capital. The financing requirements for the NDCs total USD 13 billion and could increase further after the 2025 revision. The mobilisation of financial resources via a resilient, green financial system is the basic prerequisite for the successful implementation of development and climate goals.

In 2023, Senegal further strengthened its sustainable finance architecture through the adoption of its Sustainable Financing Framework. The Framework aims to align national financing with sustainable development goals (SDGs) and enhance transparency in sovereign bond issuance by establishing criteria for eligible expenditures across various sectors, including health, education, and climate adaptation.

Despite these initiatives and growing political momentum, further efforts are needed to establish enabling framework conditions for sustainable finance across the financial sector. In particular, greater clarity on which economic activities can be considered environmentally sustainable, more systematic integration of sustainability considerations into financial decision-making and improved sustainability-related information would help financial institutions and investors identify credible sustainable investments and mobilise additional private capital.

Against this background, Senegal has laid the foundations for further developing its sustainable finance ecosystem, led by the Ministry of Finance and the Ministry of Environment. A central element is the development of a national Green Taxonomy to provide a clear and science-based classification of activities that contribute to climate change mitigation and adaptation.

Support the development of a national green finance taxonomy

• Continuous advisory for decision-making bodies throughout the development process of the taxonomy
• Sectorial studies to identify and classify sustainable economic activities
• Capacity building for technical expert groups and government officials on taxonomy development
• Support in the organization of the public consultation process

• The Senegal Green Finance Taxonomy