Environment and Climate Finance

A word from the Chairman

Around two decades ago, the Bank introduced its first instruments for the environmental and social management of its projects. These were the beginnings of a reaffirmed ambition for sustainable, integrated and resilient development in the face of environmental problems such as the accelerating loss of biodiversity, land degradation and climate change.

In 2020, the Bank adopted a new strategy, « The Environment and Climate Strategy 2021-2025 (SEC II) », which echoes one of the main missions entrusted to it by its founding fathers some fifty years ago, namely to facilitate the balanced development of WAEMU member states. SEC II is consistent with the orientations of Axis III of the DJOLIBA Plan, namely « strengthening resilience to climate change ».

In light of the large financing gap and the urgent need for stronger climate action with lasting and systematic impacts, I have committed to devote 25% of the Bank’s financing to low-carbon and climate-resilient projects. In addition, BOAD will strengthen its Environmental and Social Management System (ESMS). It will also take steps to provide concrete responses to gender-related issues in all its operations to promote sustainable development.

Leadership, dialogue and ongoing collaboration with our technical and financial partners will have a more significant impact on our actions in the coming years to protect the environment and combat climate change.

I am convinced that this new strategy will place the WADB at the heart of climate action for the sustainable development of the WAEMU. This vision, which will guide our actions, is a responsibility to support the urgent and imminent needs of our member states, which we measure, and to which we are prepared to respond.

SERGE EKUE
President of BOAD

Basilica of Our Lady of Peace, Yamoussoukro

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Environment and Climate Strategy 2021-2025

UEMOA countries are among the most vulnerable to climate change, with consequences that include higher temperatures, changes in rainfall patterns, more frequent and intense occurrence of extreme weather events, accelerated loss of biodiversity, land degradation, rising sea levels and more. These climatic shocks are devastating and threaten the development prospects of countries.

According to projections for 2050, a temperature rise of 1.5°C would lead to a 15-20% drop in GDP per capita in all WAEMU countries, compared to a scenario without climate change. Over the same time horizon, the drop in GDP per capita due to a 3°C temperature rise would be around 30% in several WAEMU countries.

The implementation of BOAD’s 2015-2019 Environment and Climate Strategy has had a positive impact on the fight against climate change in WAEMU countries. During this period, BOAD’s commitments to climate finance are estimated at FCFA 228 billion, including FCFA 152 billion for mitigation, FCFA 32 billion for adaptation, FCFA 34 billion for the environment and FCFA 10 billion for mitigation-adaptation projects.

The Bank’s efforts to direct financial flows towards environmental and climate issues in the UEMOA zone have also progressed thanks to the strategic partnerships developed with the Global Environment Facility (GEF), the Green Climate Fund (GCF) and the Adaptation Fund (AF), from which the WADB has mobilized CFAF 136 billion as at 07/31/2023.

In the context of the Paris Agreement and its implementation, the eight UEMOA member countries presented their Nationally Determined Contributions (NDCs), representing their commitments to reduce national emissions and adapt to the impacts of climate change.

The cost of the actions programmed in these NDCs is estimated at around US$100 billion for UEMOA countries by 2030. With less than ten years left to achieve the Sustainable Development Goals (SDGs) and NDC commitments, it is imperative that UEMOA member countries accelerate the implementation of actions aimed at adaptation and resilience to climate change.

In light of the context and issues raised, the vision of the new Environment and Climate Strategy 2021-2025 (SEC II) is to position the WADB at the heart of climate action for sustainable development in the WAEMU. SEC II reflects the Bank’s commitment through (05) strategic areas of intervention, including three operational areas and two cross-functional areas:

The three operational priorities are as follows:

  • BOAD’s commitment to devote 25% of its financing to projects with a direct beneficial impact on the climate.
  • Better integration of systemic risks linked to climate change into operations.
  • Strengthening the environmental and social management system, integrating gender, and updating policies and procedures in this area.

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