DAKAR, November 5th, 2024 - A new World Bank Group report highlights the significant economic and social benefits of climate action in Senegal as it pursues its Vision 2050 development plan.
The new Climate Change and Development Report (CCDR) for Senegal underscores the cost of climate inaction, warning that without adaptation, climate impacts could shrink Senegal's GDP by 9.4% by 2050. Conversely, climate action can reverse these impacts, particularly for the most vulnerable, and boost growth. The investment required for climate action is estimated at $1.36 billion per year until 2030 and $530 million annually from 2031 and 2050. Adaptation alone could boost Senegal's GDP by at least 2% by 2030 and reduce climate-induced poverty by 40%.
"Climate action is more than a response to environmental challenges; it's an investment in Senegal's prosperity, and resilience," said Keiko Miwa, World Bank Country Director for Senegal "Through these transformative initiatives, Senegal can enhance human capital, protect ecosystems, and build a robust, sustainable economy for all, supporting long-term growth and aligned with the country's Vision."
The report identifies key priorities to address climate change while maximizing development gains:
- Scaling renewable energy and sustainable transport to mitigate climate change, lower electricity costs, enhance public health, and create jobs. Leveraging Dakar's new electric Bus Rapid Transit (BRT) system, Senegal can further cut air pollution, improve mobility, and drive urban productivity.
- Enhancing natural resource management to foster resilient economic activity and protect livelihoods, with priority given to coastal resilience. Over half of Senegal's population and two-thirds of GDP are concentrated in areas highly vulnerable to climate risks.
- Advancing climate-smart agriculture to help farmers adapt to a changing climate, protect biodiversity, and ensure food security while diversifying the sector and expanding production. This can boost crop yields by 20% and increase farmers' incomes by 26%.
- Strengthening disaster-risk management to reduce the socioeconomic costs of extreme weather events through early warning systems, coordinated planning and disaster risk financing to help communities better prepare and respond to disasters. Investing in equipping young people and women with skills and adaptive health and social safety nets to mitigate the long-term threat of climate change and reduce income inequalities.
- Creating an enabling environment for the private sector to develop and finance climate solutions. At least 40% of the funding needed for climate action will have to come from private investments. Aligning carbon prices, strengthening the domestic financial sector, and piloting innovative financial instruments such as sustainability-linked bonds and loans can support this effort.
"The private sector can play a pivotal role in driving climate resilience and sustainable development in Senegal," said Olivier Buyoya, IFC Regional Director for West Africa. "Providing regulatory and financial support for climate adaptation can allow businesses to incorporate climate adaptation measures, set resilience standards, and promote sustainable practices. In addition, tailored financial products such as low-interest loans, credit guarantees, and targeted tax breaks and subsidies can help businesses invest in critical climate-resilient infrastructure."
The report calls for strategic investments and policy reforms to mobilize resources and create an enabling environment for climate action. Engaging the private sector and leveraging diverse financing sources are essential steps towards achieving Senegal's climate and development goals.
