Staff Climate Notes

Climate Change and Select Financial Instruments:An Overview of Opportunities and Challenges for Sub-Saharan Africa

Author/Editor:

Anna Belianska ; Nadja Bohme ; Kailhao Cai ; Yoro Diallo ; Saanya Jain ; Giovanni Melina ; Pritha Mitra ; Marcos Poplawski Ribeiro ; Solo Zerbo

Publication Date:

November 1, 2022

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

Summary:

Sub-Saharan Africa (SSA) is the region in the world most vulnerable to climate change despite its cumulatively emitting the least amount of greenhouse gases. Substantial financing is urgently needed across the economy—for governments, businesses, and households—to support climate change adaptation and mitigation, which are critical for advancing resilient and green economic development as well as meeting commitments under the Paris Agreement. Given the immensity of SSA’s other development needs, this financing must be in addition to existing commitments on development finance. There are many potential ways to raise financing to meet adaptation and mitigation needs, spanning from domestic revenue mobilization to various forms of international private financing. Against this backdrop, SSA policymakers and stakeholders are exploring sources of financing for climate action that countries may not have used substantially in the past. This Staff Climate Note presents some basic information on opportunities and challenges associated with these financing instruments.

Series:

Staff Climate Note No 2022/009

Subject:

Economic sectors Environment Financial crises Financial institutions

Frequency:

occasional