ABIDJAN, July 1, 2025 - In a move poised to reshape sustainable development financing in Africa, Côte d'Ivoire today announced the launch of its innovative Sustainability-Linked Finance (SLF) Framework. Developed in collaboration with the World Bank Group, this directly ties the Côte d'Ivoire's cost f borrowing to its ambitious environmental and climate targets, setting a new standard for accountability and incentivizing transformative policy actions.
"Côte d'Ivoire has firmly established itself as a leader of sustainable finance innovation in Africa" said Marie-Chantal Uwanyiligira, World Bank Division Director for Côte d'Ivoire, Benin, Guinea, and Togo. "This new approach not only incentivizes the achievement of ambitious sustainability commitments but also empowers Côte d'Ivoire to drive transformative change that will benefit generations to come. The World Bank is immensely proud to support this initiative, fostering accountability and resilience, in the face of global challenges".
Ambitious Targets, Key Indicators, and Potential for Job Creation
The SLF Framework lays out ambitious, quantifiable targets in two critical sectors: renewable energy and forestry. These goals are central for Côte d'Ivoire's sustainable development agenda, enhancing its resilience to climate change, and, crucially, are expected to create more jobs and opportunities in a diversifying economy. By 2030, the country aims to increase the share of renewable energy, excluding hydropower, in its total installed electricity capacity from 1% in 2023 to at least 11%. This expansion is projected to create a surge in new employment opportunities in renewable energy installation, maintenance, and technological innovation. In the vital forestry sector, Côte d'Ivoire is committing to stringent deforestation controls, ensuring forest cover losses do not exceed 300,000 hectares between 2025 and 2030.
Simultaneously, the country plans an ambitious reforestation effort, converting 1 million hectares of land into forest cover by 2030. These initiatives are designed to foster new "green jobs" in sustainable forest management, conservation, and reforestation efforts, significantly contributing to both environmental sustainability and economic resilience.
How Does Financing Linked to Sustainability Targets Work?
Sustainability-linked financing instruments do not require issuers to use the proceeds for certain desired investment objectives but instead tie the cost of the financing raised to the achievement of predetermined "ambitious and relevant" sustainability goals. The Framework introduces a two-way pricing mechanism for borrowing, offering an interest rate reduction (step-down) if Côte d'Ivoire surpasses its ambitious targets, and an increase (step-up) if targets are not met.
Robust reporting and verification mechanisms support this Framework, ensuring transparency, accuracy, and credibility. Côte d'Ivoire Ministry of Finance and Budget will publish annual progress reports on each target, utilizing advanced technologies, such as remote sensing and nationwide geospatial monitoring.
First Time Use of the World Bank's New Methodology for Target Setting
To ensure the credibility and impact of these targets, the framework has implemented the World Bank's Feasibility and Ambitiousness Assessment (FAB) methodology. This rigorous analysis evaluates the feasibility and ambitiousness of the sustainability performance targets, ensuring they are aligned with Côte d'Ivoire's national commitments and international standards. The World Bank's FAB methodology is available as a free tool on the Sovereign ESG Data Portal, highlighting the commitment from the World Bank Group to help financial transactions underpinned by transparent, robust, and high-quality sustainability targets, increasing investors' confidence, and ensuring tangible social and environmental impacts.
World Bank Group's Role
With the support of the Joint Capital Market Program (JCAP) donors*, The World Bank Group has provided technical assistance in the development of this Framework, ensuring that it aligns with international best practices and supports Côte d'Ivoire's ambitious sustainability goals.
The World Bank remains committed to supporting Côte d'Ivoire in its journey towards sustainable development, ensuring that financial strategies are aligned with environmental performance and tangible results.
Setting the Stage for the First Sustainability-Linked Loan Operation
The independent research, ratings, and analytics firm, and Second Party Opinion provider Sustainalytics, favorably evaluated the SLF Framework and confirmed its alignment with the sustainability-linked bond and loan principles. Through the SLF Framework, the government aims to secure a Sustainability-Linked Loan (SLL) from commercial lenders supported by a credit enhancement from the World Bank Group guarantee platform in the coming months. This inaugural Sustainability-Linked Loan will encompass an additional layer of financial innovation, as it will be the first use of the combination of IBRD and MIGA guarantee products, under a first loss / second-loss mechanism. This operation will mark a new strategic step in Côte d'Ivoire's blended finance roadmap, unlocking additional capital at significantly reduced cost.
* JCAP is a joint program between the World Bank and IFC and is made possible in WEAMU from the support of the government of Germany, and globally with support from the governments of Switzerland, Germany, Norway, Luxembourg, Japan, Australia and the Netherlands.
