📋 Tender Overview
A new World Bank Group report highlights the significant economic and social benefits of climate action in Senegal as it implements its Vision 2050 development plan. The new Country Climate and Development Report (CCDR) for Senegal highlights the cost of climate inaction, warning that without adaptation, the impacts of climate change could reduce Senegals GDP by 9.4 percent by 2050. Conversely, climate action can reverse these impacts, especially for the most vulnerable, and boost growth. The investments needed for climate action are estimated at $1.36 billion per year through 2030 and $530 million per year between 2031 and 2050. Adaptation alone could increase Senegals 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 is an investment in Senegals prosperity and resilience, said Keiko Miwa, World Bank Country Director for Senegal. Through these transformative initiatives, Senegal can strengthen its human capital, protect its ecosystems, and build a robust and sustainable economy for all, supporting long-term growth and in line with the countrys vision.
The report identifies key priorities for tackling climate change while maximizing development gains:
Expand renewable energy and sustainable transport to mitigate climate change, reduce electricity costs, improve public health, and create jobs. Building on Dakars new electric bus rapid transit (BRT) system, Senegal can further reduce air pollution, improve mobility, and boost urban productivity.
Improve natural resource management to foster resilient economic activity and protect livelihoods, prioritizing coastal resilience. More than half of Senegals population and two-thirds of GDP are concentrated in areas highly vulnerable to climate risks.
Promote climate-smart agriculture to help farmers adapt to climate change, protect biodiversity, and ensure food security while diversifying the sector and increasing production. This can increase agricultural yields by 20% and farmers incomes by 26%.
Strengthen 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 for and respond to disasters. Invest in skills and adaptive health and social safety nets for youth and women to mitigate the long-term threat of climate change and reduce income inequality.
Create an enabling environment for the private sector to develop and finance climate solutions. At least 40% of climate finance will need to come from private investment. Aligning carbon prices, strengthening the domestic financial sector, and experimenting with innovative financial instruments such as sustainability-linked bonds and loans can support this effort.
The private sector can play a central role in strengthening climate resilience and sustainable development in Senegal, said Olivier Buyoya, IFC Regional Director for West Africa. Providing regulatory and financial support for climate change adaptation can enable businesses to integrate climate change adaptation measures, establish 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 mobilizing diverse sources of financing are essential steps to achieve Senegals climate and development goals.
