November 14, 2024
PRESS OFFICER: Kwabena Akuamoah-Boateng
Phone: +1 202 623-7100Email: MEDIA@IMF.org
Baku, Azerbaijan: The Government of Madagascar in collaboration with International Financial Institutions (IFIs) and development partners announced today at COP29 in Baku an integrated set of innovative initiatives to catalyze climate finance in Madagascar. These initiatives, such as a climate finance mobilization strategy, a lemur bond, and a results-based grant financing facility for distributed renewable energy will play an instrumental role in mobilizing private and public sector financing for addressing climate-related challenges as well as opportunities for investment.
Madagascar is one of the world’s most vulnerable countries to climate change and is prone to frequent climate-related disasters due to its geographical location and topography. At the same time, it is endowed with abundant natural capital and is recognized as a one of the top five biodiversity hotspots worldwide. To achieve its climate goals and close its Nationally Determined Contributions (NDC) funding gap, Madagascar estimates it will require US$24.4 billion by 2030.
Madagascar is the first pilot country for the IMF-World Bank Enhanced Cooperation Framework for scaled-up climate action. In June 2024, the IMF Executive Board approved a Resilience and Sustainability Facility (RSF) arrangement of US$321 million with reforms to strengthen adaptation to climate change and resilience against natural disasters, support climate change mitigation efforts, enhance the protection of ecosystems, and create conditions for green private sector investment. The RSF is aligned with policy recommendations outlined in the World Bank Group’s Country Climate and Development Report (CCDR). Against this backdrop, a climate finance roundtable was co-convened by the IMF, the World Bank and the authorities in Antananarivo in October 2024 that brought together IFIs, development partners and the private sector. In the discussion, the following workstreams were identified as areas for collaboration:
Policy Reform
Financing
Project Preparation Facility (PPF) for Adaptation
Technical Assistance
"We need significant funding within the framework of the Nationally Determined Contribution - NDC 2, which aims to reduce greenhouse gas emissions by 28% by 2030, and to strengthen the country's resilience to climate change. I welcome the efforts of to crystallize this amount should be carried out through a joint public-private momentum and, with the support of our development partners."
Minister Rindra Hasimbelo Rabarinirinarison, Ministry of Economy and Finance
"The Climate Finance Mobilization Platform marks a pivotal moment for Madagascar’s vision to drive forward transformative reforms that attract climate finance and bridge our critical resource gap. We are deeply grateful to the IMF, World Bank, AfDB, and GEF, and other partners for their trust and partnership. Together, we are setting Madagascar on an ambitious path toward resilience and sustainability, harnessing the power of innovation and collaboration to secure a brighter future for our nation and our ecosystems."
Minister Max Andonirina Fontaine, Ministry of Environment and Sustainable Development
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