Climate action offers an opportunity to safeguard development gains and accompany the ambitious transformation Senegal is embarking on to achieve its objective of reaching middle income status in the next decade. While the country was among the fastest growing economies in Sub-Saharan Africa (SSA), poverty reduction was slow, vulnerabilities persisted, and inequalities increased. In addition, overall productivity remained low, with lagging structural transformation, high informality, and low job creation. To attain its middle-income goal, Senegal must initiate a series of reforms for a productive, sustainable, and inclusive growth model, with climate considerations at the center given the country’s high vulnerability. Senegal’s high climate vulnerability is caused by the country’s coastal exposure and reliance on natural resources for food, jobs, and growth (partly a consequence of its slow structural transformation). With temperatures soaring, precipitation expected to decrease, and erosion threatening 75 percent of the coastline at term, Senegal’s population and assets are under high risk. The poorest are particularly vulnerable, with 55 percent of total households teetering on the edge of poverty because of recurrent shocks. Without action, annual economic losses could reach 3-4 percent of Gross Domestic Product (GDP) as soon as 2030 and further increase to 9.4 percent by 2050, wiping years of per capita income growth and eroding any potential human capital accumulation. Overall, climate change could push two more million Senegalese in poverty by mid-century. Building resilience and leveraging the low-carbon economy will help Senegal realizing its growth ambitions, contributing to a more productive, sustainable, and inclusive development pathway. The macro-economic analysis for this CCDR finds that adaptation measures in selected sectors could bring GDP gains of about 2 percent by 2030, and between 0.5 and 1 percent afterwards (for climate financing needs of about 0.9 percent of GDP in the period to 2030 and 0.1 percent afterwards). Adaptation could also reduce poverty headcount, with 40 percent less people pushed into poverty by climate change compared to no adaptation action. In addition, emission reductions could reach 20MtCO2e per year over the period to 2050, from interventions in forestry, improved cooking services, urban transport, waste management, and energy production. The energy transition provides an opportunity to meet both development and climate objectives, exceeding NDC targets and putting the country well on track for net zero by 2050, but significant downside risks remain, linked to delays in the deployment and financing availability for renewable generation and domestic gas. Senegal’s formidable renewable energy potential (chiefly around solar) offers the lowest cost generation option to meet rising energy demand while accelerating decarbonization. At term, the country could play a leading role in decarbonizing the region though export opportunities and bolster resilience across the regional grid. In the short term, given constraints to the fast deployment of renewables, the transitional use of domestic gas will help phase out expensive and high-emitting coal and Heavy Fuel Oil (HFO) generation, while balancing the electricity system and lowering the cost of electricity. Climate action will require a financing of US$8.2 billion over 2025-30 (in present value, at 6 percent per year), or 4.5 percent of discounted cumulative GDP over the same period, and US$10.6 billion over 2031-50 (in present value terms), or 2.0 percent of discounted cumulative GDP over the same period. Water security, sustainable (urban) transport, and the energy transition account for the largest share. Importantly, climate action is expected to bring significant benefits over time, beyond climate adaptation and mitigation – including health or jobs, (as in the primary sector, with 155,000 jobs created, of which 80 percent in agriculture). Many benefits could not be properly estimated, implying that the returns from climate action might well be underestimated.
Authors
- Citation
- “ World Bank Group . 2024 . Senegal Country Climate and Development Report . CCDR Series . © Washington, DC: World Bank . http://hdl.handle.net/10986/42364 License: CC BY-NC-ND 3.0 IGO . ”
- Collection(s)
- Country Climate and Development Reports (CCDRs) French PDFs Available
- DOI
- https://doi.org/10.1596/42364
- Identifier externaldocumentum
- 34417978
- Identifier internaldocumentum
- 34417978
- Pages
- 24
- Published in
- United States of America
- Region country
- Senegal
- RelationisPartofseries
- CCDR Series
- Report
- 194531
- Rights
- CC BY-NC-ND 3.0 IGO
- Rights Holder
- World Bank
- Rights URI
- https://creativecommons.org/licenses/by-nc-nd/3.0/igo/
- UNIT
- AFR ENR PM 1 (SAWE1)
- URI
- https://hdl.handle.net/10986/42364
- date disclosure
- 2024-11-05
- region administrative
- Western and Central Africa
- theme
- Inclusive Growth,Mitigation,Gender,Human Development and Gender,Economic Policy,Green Growth,Economic Growth and Planning,Environment and Natural Resource Management,Private Sector Development,Environmental policies and institutions,Climate change,Urban and Rural Development,Adaptation,Flood and Drought Risk Management,Macroeconomic & Structural Policy Modelling,Disaster Risk Management,Public Private Partnerships
Files
Table of Contents
- List of Figures 6
- List of Tables 6
- Acronyms and Abbreviations 8
- Chapter 1: Climate Change and Development 15
- 1.1. Development Context 15
- 1.2. Climate Change Vulnerabilities 17
- 1.3. Greenhouse Gas emissions profiles 27
- Chapter 2: Country Climate Readiness 31
- 2.1. Climate Commitments 31
- 2.1.1. A Focus on Adaptation and Energy Transition 31
- 2.1.2. Incorporating Climate into National and Sectoral Strategies and Plans 31
- 2.2. Climate-Related Legislation and Institutional Coordination Mechanisms 33
- 2.2.1. Climate-Related Legislation 33
- 2.2.2. Institutional Coordination for Climate Change 35
- 2.3. Institutional Readiness for Climate Change Action 37
- 2.3.1. Integration into Investment Instruments and Budget Processes 37
- 2.3.2. Risks to Climate Action Due to Lack of Data Accessibility and Accountability 39
- 2.4. Private Sector Readiness 40
- 2.3.1. Integration into investment instruments and budget processes 40
- Chapter 3: Scaling Up Climate Action Across Natural, Built, and Human Capitals 47
- 3.1. Productive Landscapes 47
- 3.1.1. Food Security 47
- 3.1.2. Water Security 56
- 3.1.3. Forested Landscapes 58
- 3.2. Sustainable Cities 61
- 3.2.1. The Role of Cities in Driving Economic Development in Senegal 61
- 3.2.2. Vulnerability of Cities to Climate Risks 64
- 3.2.3. Investing in Cleaner, More Resilient, and More Productive Cities for Senegal’s Development Goals 66
- 3.3. Resilient Human Capital 70
- 3.3.1. Social Protection 71
- 3.3.2. Human Health 76
- 3.3.3. Education 79
- Chapter 4: Engaging the Energy Transition 83
- 4.1. A Dynamic Sector with Significant Growth and Transformation Potential 83
- 4.2. Senegal’s Vision for the Energy Transition: Balancing Increasing Access to Low-Cost Power with Climate Objectives 85
- 4.2.1. Universal Access 85
- 4.2.2. Energy Transition 86
- 4.2.3. Regional Integration 92
- 4.2.4. Energy Efficiency 93
- 4.2.5. Adaptation and Resilience 93
- Chapter 5: Rationale for a Climate‑Resilient, Low-Carbon Development Trajectory 97
- 5.1. The High Cost of Climate Inaction to Senegal’s Development Aspirations 97
- 5.1.1. Climate Uncertainty and Impact Channe Considerations for Senegal 97
- 5.1.2. The Impact of Climate Inaction on the Pace of Poverty Reduction 100
- 5.2. Benefits of Climate Action Beyond Adaptation and Mitigation 103
- 5.3. Boosting Growth and Poverty Reduction through Adaptation (Modeling in Select Sectors) 107
- 5.4. Opportunities in the New Hydrocarbon Sector 109
- Chapter 6: Financing Climate Action 113
- 6.1. Context: Climate Action Needs and Current Levels of Funding 113
- 6.2. Key Opportunities: Review of Promising Climate Finance Sources and Instruments 114
- 6.2.1. Market-Based Instruments 114
- 6.2.2. Concessional Finance 118
- 6.2.3. Dedicated Instruments 119
- 6.3. Leveraging Sources and Instruments to Mobilize Financing at Scale 122
- 6.3.1. Making the Most of Debt and Derisking Instruments 122
- 6.3.2. Tapping into Disaster Risk Financing 123
- 6.3.3. Aligning (Carbon) Prices 124
- 6.3.4. Strengthening the Role of Local Authorities in Climate Adaptation 126
- Figure B1.1.1. Evolution of Mean Annual Temperature (Left) and Number of Hot Days (Right) in Senegal 18
- Figure 1.2. Senegal’s GHG Emissions (1990–2022) 27
- Figure 1.4.1. Methane Gas Concentrations over Mbeubeuss, the Largest Landfill in West Africa 28
- Figure B2.1.1. Senegal’s Adaptation and Resilience Performance Across All Pillars 32
- Figure 2.1. Proposed Governance Framework for the Climate Change Agenda in Senegal 36
- Figure 2.2. Senegal’s Exposure to Climate Shock 40
- Figure 2.3. Estimated Average Annual Monetary Cost of Damages Caused by Climate Events (in US$ Thousands) 41
- Figure 2.4. Top 6 Channels of Climate Impacts on Enterprises (Share of Firms Affected) 41
- Figure 2.5. Share of Firms Using Climate Solutions, by Sector 42
- Figure 2.6. Types of Climate Solutions in Use 42
- Figure 2.7. Main Motivations for Use of Energy Efficiency Measures 43
- Figure 2.8. Main Reasons for Not Using Energy Efficiency Measures 43
- Figure 3.1. Climate Change Impact on Yields in the Nioro Region of Senegal (2050s) 48
- Figure B3.2.1: Level of Readiness for Agriculture and Food Security 50
- Figure B3.3.1: Map of Senegal Highlighting Areas Suitable for Naatangue Farming 51
- Figure B3.7.1. Observed and Predicted Presence of Dense Humid Forests in Senegal under SSP5-8.5 for the Period 2041–60 60
- Figure B3.8.1. Level of Readiness for Coastal Zone Management 63
- Figure 3.2. Overview of GHG Emissions by Sector and Subsector in the City of Dakar. 65
- Figure 3.3. Contribution (%) of Each Type of Vehicle to Road Transport GHG Emissions in Dakar 65
- Figure 3.4. National Social Protection Programs Contributing to Climate Adaptation in Senegal 72
- Figure 4.1. Production Schedule for Oil and Gas Fields (Government’s Estimates) 87
- Figure 4.2. Capacity Mix in Senegal (2022, Installed Capacity 1.7 GW ) 89
- Figure 4.3. Installed Capacity in 2022 and 2050 under the Base Case and the Low Emissions Scenarios 90
- Figure 4.4. CO2 Emissions under the Base Case and the Low Emissions Scenarios 91
- Figure 4.5. Cumulative Investment Needs 2022–50 in Billion US$ (Discounted at 6%) 91
- Figure 4.6. Average Production Cost (US$c/kWh) 91
- Figure 5.1. Figure ES.1. Cost of Inaction over Time (% Deviation in GDP from the Baseline) 98
- Figure 5.2. GDP Losses in Dry/Hot and Wet/Warm Climate Scenario, by Impact Channel 99
- Figure 5.3. The Effects of Climate Change on the Livelihoods of the Poor and Vulnerable 101
- Figure 5.4. The Impact of Poverty on Structural Change and Wages 102
- Figure 5.5. Adverse Impacts of Climate Change on Both Urban and Rural Populations 103
- Figure 5.6. CA/OPEX of Climate Action and Corresponding Emission Reductions 104
- Figure 5.7. Net Present Value of CA/OPEX of Climate Action and Corresponding Benefits 104
- Figure 5.8. Expected Public/Private Shares in Costs, by Sector 106
- Figure 5.9. A Snapshot of Potential Gains from Adaptation Action 108
- Figure 5.10. The Impacts of Adaptation Measures on Poverty Reduction Over Time 109
- Figure 6.1. Inefficiencies in How Energy Subsidies are Targeted 114
- Figure 6.2. Evaluating the Ambition of Senegal’s Sustainability Targets 116
- Figure 6.3. Evaluating the Feasibility of Senegal’s Sustainability Targets 116
- Figure 6.4. Stronger Compensation Measures to Mitigate the Short-Term Effects on Poverty 121
- Table 2.1. Awareness of Climate Exposure by Sector 40
- Table 2.3. Awareness and Adoption of GHG Reduction Measures by the Senegalese Private Sector over the Past Three Years 44
- Table 3.1. Carbon Dioxide Mitigation Potential for Climate-Smart Agriculture Interventions 53
- Table 4.1. Scenarios and Parameters for the Energy Transition Deep Dive 88
- Table 5.1. Climate Action Cost and Benefits by 2030 and 2050 105
- Table 6.1. Existing DRF Instruments in Senegal 120
- Box 1.1. Ongoing Climate Change and Current Impacts in Senegal 18
- Box 1.2. Values of Select Ecosystem Services in Senegal and West Africa 21
- Box 1.3. Climate Change and Migration 24
- Box 1.4. Precision Emission Surveys for Landfill and Gas Management in Senegal 28
- Box 2.1. What is Senegal’s Adaptation and Resilience Readiness? 32
- Box 2.2. Senegal’s 2024–26 Multiyear Budget and Economic Programming Document 37
- Box 2.3. Senegal’s Budget for 2024 38
- Box 2.4. Ten Policy Responses to Accelerate Climate Adaptation by the Private Sector in Senegal 45
- Box 3.1. Enhancing Adaptation Outcomes by Strengthening Women’s Land Rights 48
- Box 3.2. Key Insights from the Adaptation and R Diagnostic on Agriculture and Food Security 50
- Box 3.3. Assessing the Potential for Agroforestry in Senegal 51
- Box 3.4. Agriculture Sector Development in Senegal 52
- Box 3.5. Mangroves and Sea Grass Beds are Key for Coastal Adaptation and Mitigation 54
- Box 3.6. Promoting the Private Sector’s Role in Climate-Smart Tourism in Senegal 58
- Box 3.7. Climate Change Impact on Forest Cover and Carbon Stocks in Senegal (Mid-Century) 59
- Box 3.8. Key Insights from Adaptation and Resilience Diagnostic on Coastal Zone Management 63
- Box 3.9. Nature-Based Solutions (NBS) for Adaptation in Dakar 69
- Box 3.10. Job Creation Opportunities for Climate Action in Senegal 75
- Box 3.11. Key Insights from Adaptation and Resilience Diagnostic on Human Health 76
- Box 4.1. Key Insights from Adaptation and Resilience Diagnostic on Energy 94