By Abdrahmane Wane and Maguette Kaïré
September 2023
Key message:
Countries in the West African Economic and Monetary Union are among the most vulnerable to climate impacts, while being among the lowest emitters globally. Climate finance flows to the region stood at only $3.5 billion in 2020, while WAEMU’s climate finance needs amount to $7.9 billion annually – leaving a wide gap that needs to be filled. To meet the significant investment in climate adaptation and mitigation needed, this report looks at the gaps in climate finance in the region, and provides recommendations for action to address them.
Key audience: This report is a key resource for donors, national governments in the WAEMU, and researchers and practitioners working in the region.
Countries in the West African Economic and Monetary Union (WAEMU) – including Benin, Burkina Faso, Cote d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo – remain among the most exposed nations to climate change impacts. They are also among the lowest emitters globally.
Significant investments in climate adaptation and mitigation are needed to overcome this structural inequality and to balance the funding required by WAEMU countries with the volumes available and accessible.
Using donor strategies that tend to be closely linked to vulnerability to climate change and state fragility, this report conducted a differentiated analysis of climate finance issues by focusing on three levels: The overall WAEMU region; Coastal countries and Sahelian countries of the WAEMU.
The report processed climate finance data available via national, regional and international databases. It finds that:
· WAEMU’s climate finance needs amount to $7.9 billion annually, representing 35.5% of West Africa’s needs and 3.2% across the continent;
· Climate finance flows to the WAEMU region stood at only $3.5 billion in 2020, leaving a wide gap that needs to be filled;
· To address the gaps in climate finance, WAEMU countries must reach a common understanding of what constitutes adequate support;
· They must also strengthen their institutional and policy frameworks around climate finance, increase domestic resource mobilisation, improve access to international climate finance and implement bankable climate investments.
· They must explore innovative market solutions such as debt-for-nature swaps or debt relief for climate finance to stimulate private-sector investments and concessional financing.
