Access to climate finance as path to private sector investment in NDC and Green Emergent Plan

The country representative of the Global Green Growth Institute (GGGI) reiterated, on Thursday, the support of this structure to the State of Senegal in the formulation and adoption of policies to increase green investment.

”I would like to recall that within the framework of our mandate and under its strategic objectives, the GGGI supports the State of Senegal in the formulation and adoption of policies to increase investment and access to climate finance,” said Assana Magagi Alio.

Several projects are being implemented around the objectives of the Nationally Determined Contribution (NDC) and the Paris Climate Agreement with the aim of stimulating post-Covid green growth, creating jobs and resilient to the effects of climate change,” she added.

She was speaking at a workshop organised with  the Agricultural Bank (LBA) and the GGGI on “green investment opportunities and climate finance mobilisation in Senegal”.

The objective  of the dialogue was to initiate the structuring of a portfolio of  projects on key sectors relatedto the  adaptation and/or mitigation to climate change and to build partnerships with the national private sector.

In this regard, she pointed to “the attractiveness of Senegal’s green investment which was recently demonstrated in the green growth index applied to the country’s flagship policy framework”.

According to her, “the exercise revealed the existence of opportunities for improvement in terms of social inclusion and green economic opportunities”.

Ms. Alio welcomed the revision of the PPP legal framework n°01/2021 by  which “introduces the adoption of new instruments, facilitating the implementation of private projects and an incentive framework for the participation of the national private sector”.

An attractive business environment for green investment is a key factor in addressing climate change adaptation issues,” the GGGI country director argued.

In this regard, she noted that by the way of an example “the application of energy audit measures and corrective measures for production efficiency could generate a gain of 3 billion CFA francs for rice mills in the Senegal River Valley.

This conclusion of a study in the framework of an audit and capacity building mission for 05 rice mills in the river valley, she quoted, “clearly indicates the important role that each partner here will have to play to achieve the objectives of the NDC, to bring an added value in the value chain that is respectful of the environment”.

She praised “the involvement of the services of the Ministry of Agriculture and Rural Equipment, which accounts for more than 60% of the project portfolio in the country cooperation programme”.

The Director General of the Agricultural Bank (LBA), Malick Ndiaye, stressed on Thursday in Dakar the need to adopt new financing models that will allow to bend the curve of gas emissions and improve the profitability of production tools. “The urgency and magnitude of the challenges require us to adapt to the situation and to be bold in adopting financing models that can bend the curve of gas emissions while improving the profitability of our production equipment,” he said.

The dialogue were held over two (02) days, on 16 and 17 June 2022 at the TERROU BI HOTEL in Dakar,under the chairmanship of the Ministry of the Environment and Sustainable Development accompanied by theMinistry of the Economy, Planning and Cooperation, the Ministry in charge of monitoring the PES and the Ministry ofand the Ministry of Agriculture and Rural Equipment. The workshop gathered together different stakeholders mainly from the national private sector, sectoral ministriessectoral ministries, national financial institutions, producers’ organisations, SMEs, suppliers of resilient solutions andproviders of climate resilient solutions and technologies. Technical and financial partners,sectoral ministries, regional and international financial institutions(BOAD, ADB, IFC,AFD,KFW) and representatives of civil society organisations, etc…