Climate Change and Select Financial Instruments:An Overview of Opportunities and Challenges for Sub-Saharan Africa
Staff Climate Notes, November 1, 2022
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- Climate Change and Select Financial Instruments:An Overview of Opportunities and Challenges for Sub-Saharan Africa
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Bibliographic details
- Authors: Anna Belianska, Nadja Bohme, Yoro Diallo, Saanya Jain, Giovanni Melina, Pritha Mitra, Marcos Poplawski Ribeiro, Solo Zerbo
- Published: November 1, 2022
- Series: Staff Climate Notes
- DOI: https://doi.org/10.5089/9798400225208.066
Overview and context
- Sub-Saharan Africa (SSA) is described as 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.
- Adaptation and mitigation financing are presented as critical for advancing resilient and green economic development and for meeting commitments under the Paris Agreement.
- Given SSA’s other development needs, this financing must be in addition to existing commitments on development finance.
- The note focuses on potential ways to raise financing, spanning from domestic revenue mobilization to various forms of international private financing.
- Purpose: present basic information on opportunities and challenges associated with select financing instruments that SSA policymakers and stakeholders may not have used substantially in the past.
Key findings and messages
- Vulnerability and emissions:
- SSA: most vulnerable to climate change and cumulatively emits the least amount of greenhouse gases.
- Financing needs and priorities:
- Financing must cover governments, businesses, and households for both adaptation and mitigation.
- Financing for climate action should be additional to existing development finance commitments.
- Range of financing instruments:
- Instruments discussed include domestic revenue mobilization and international private financing, among others.
- Specific instrument terms appearing in the source’s metadata and keywords: blue bonds, carbon credits, climate funds, climate insurance, concessional finance, crowding out SSA project, debt for climate swaps, forest conservation, green bonds, green development, sustainability bonds.
- Objective of the Staff Climate Note:
- Provide basic information on opportunities and challenges associated with these financing instruments for SSA policymakers and stakeholders.
Subject areas and keywords
- Subject: Economic sectors, Environment, Financial crises, Financial institutions
- Keywords: adaptation, Africa, blue bonds, carbon credits, climate change, Climate finance, climate funds, climate insurance, Climate policy, concessional finance, crowding out SSA project, debt for climate swaps, forest conservation, Global, green bonds, green development, Greenhouse gas emissions, IMF staff Climate note, IMF staff Climate Note 2022/009, Insurance, mitigation, solo Zerbo, SSA government, SSA policymaker, sub-Saharan Africa, sustainability bonds
This summary is based on "Climate Change and Select Financial Instruments:An Overview of Opportunities and Challenges for Sub-Saharan Africa", Staff Climate Notes 2022, 009 (2022), authored by Anna Belianska et al., published November 1, 2022.
Content in this bundle
- IMF Staff Climate Note 2022/009