The Government of Senegal and the World Bank have signed a partnership agreement to establish carbon markets (PMI) for two years with financing of two million US dollars or over one billion CFA francs to facilitate access to finance and the carbon tax. The Director of Environment and Classified Establishments, Baba Dramé, noted during the project launch workshop that despite progress made in the field of carbon markets, there is still much to be done in terms of ensuring appropriate coverage of Senegal’s needs in this area. To this end, the collaboration between the Government of Senegal and the World Bank has been initiated. Mr. Dramé said that the project would “facilitate better access to finance for stakeholders, the carbon tax, through the improvement of dedicated governance frameworks and the establishment of rules and procedures, the development of technical tools, and the development of prices on the modalities of this approach”. The execution managers of the project were urged to conduct all feasibility studies to inform authorities who will ultimately decide. Mr. Dramé invited political actors, civil society, and the private sector to become involved in proposing the best possible options to carry out the process.
The World Bank’s Director of West African Environment, Maria Sarraf, congratulated Senegal “as a pioneer in the sub-region for mastering certain financial instruments for climate action and for its many advances in climate policies”. She added that the project would enable Senegal to prepare a roadmap for the carbon tax and improve access and participation in international carbon markets. The project is expected to establish a functional carbon market in Senegal, with procedures and a governance framework that corresponds to national priorities. The project’s goals include upgrading the regulatory and policy environment, strengthening monitoring and enforcement, building capacity for the private and public sectors to participate in the carbon market, and establishing an exchange platform.
The project’s success will be measured by increased investment, an improved environment for private sector development and job creation, and an increased flow of technology and know-how. It will also contribute to the reduction of greenhouse gas emissions and increase the country’s climate mitigation efforts. The project is in line with Senegal’s National Planning Document, the Emerging Senegal Plan that emphasises the development of green sectors and the fight against climate change.