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

By Anna Belianska, Nadja Bohme, Kaihao Cai, Yoro Diallo, Saanya Jain, Giovanni Melina, Pritha Mitra, Marcos Poplawski Ribeiro, Solo Zerbo

November 1, 2022

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Anna Belianska, Nadja Bohme, Kaihao Cai, Yoro Diallo, Saanya Jain, Giovanni Melina, Pritha Mitra, Marcos Poplawski Ribeiro, and Solo Zerbo. Climate Change and Select Financial Instruments:An Overview of Opportunities and Challenges for Sub-Saharan Africa, (USA: International Monetary Fund, 2022) accessed November 8, 2024

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.

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

Publication Details

Pages:

43
Volume:

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DOI:

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Issue:

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Series:

Staff Climate Note No 2022/009
Stock No:

CLNEA2022009
ISBN:

9798400225208
ISSN:

2789-0600

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