Despite emerging as one of the fastest-growing economies in Sub-Saharan Africa over the past decade due to enhanced international competitiveness and favorable external conditions, Senegal has seen limited progress towards achieving inclusive growth, with economic performance characterized by a slow pace of poverty reduction and persistent inequalities. Rising uncertainty, overlapping crises, and exposure to climate risks accentuate existing vulnerabilities and threaten sustainable social and economic development. Senegal's exposure to external shocks has revealed persistent underlying constraints to achieving productive, sustainable, and inclusive growth. The country's coastal exposure and reliance on natural resources for economic activities, jobs, and livelihoods - due to the slow structural transformation of its economy - make it particularly vulnerable to climate change. This Country Climate and Development Report (CCDR) recommends several measures to accelerate climate action and development across natural, built, and human capitals and facilitate the energy transition. The financing requirements for climate action, as evaluated in the CCDR, are relatively small compared to Senegal's economy and are expected to bring significant long-term benefits beyond climate adaptation and mitigation.
Authors
- Disclosure Date
- 2024/11/07
- Disclosure Status
- Disclosed
- Doc Name
- Senegal - Country Climate and Development Report : Executive Summary
- Pages
- 24
- Product Line
- Advisory Services & Analytics
- Published in
- United States of America
- Rel Proj ID
- SN-Senegal Country Climate And Development Report (Ccdr) -- P180943
- Unit Owning
- AFR ENR PM 1 (SAWE1)
- Version Type
- Revised
- Volume No
- 1
Table of Contents
- Country Climate and Development Report 1
- WESTERN AND CENTRAL AFRICA 1
- Country Climate and Development Report 3
- WESTERN AND CENTRAL AFRICA 3
- Climate change is challenging Senegals development aspirations. 6
- Rising uncertainty overlapping crises and exposure to climate risks accentuate existing vulnerabilities and threaten the achievement of sustainable social and economic development. 6
- Senegals exposure to external shocks revealed the persistence of underlying key constraints to achieving productive sustainable and inclusive growth. 6
- Exposed coastal zones. 7
- Natural capital under pressure. 7
- More prevalent natural hazards. 7
- Worsening health status of populations. 7
- Climate change impacts are magnified by high levels of poverty and inequality. 7
- Climate inaction is costly while climate action will bring benefits. 8
- Recent global crises have emphasized the crucial need for accelerating structural change and fostering innovation to reach a more inclusive and resilient growth model. 8
- Figure ES.1. Cost of Inaction over Time Deviation in GDP from the Baseline 9
- The time for action is now. 9
- Climate-resilient low-carbon development growth can reduce annual economic losses and bring significant benefits. 9
- Figure ES.2. Poverty Reduction over Time due to the Implementation of Adaptation Measures Percentage Points Change Relative to a Climate Change Scenario without Adaptation 10
- The CCDR recommendations are prioritized along the sense of urgency 10
- Table ES.1. Recommendations for Climate Action 11
- From a transversal cross-cutting point of view two important conclusions are emerging 12
- The financing requirements of climate action are large but they are relatively small compared to Senegals economy 2.0 to 4.5 percent of cumulative GDP. 12
- Figure ES.3. Net Present Value of CA OPEX of Climate Action and Corresponding Benefits by Sector and Time Frame 12
- Senegals energy sector has experienced tremendous growth in the past decade serving as a catalyst for the countrys economic growth and shaping its role as a regional power hub. 13
- Significant investments will be needed in the short to medium term to ramp up the deployment of renewable energy at scale and implement the gas-to-power strategy which has been delayed. 14
- Improved natural resource management is a priority for resilient economic activities jobs and livelihoods. 15
- Water security in Senegal is threatened by deteriorating water resources and poor management and climate change will further compound these challenges. 16
- Climate change will increase pressure on ecosystems and the services they provide such as forests which are critical to sustaining economic development and livelihoods and mitigating climate change. 16
- Investing in sustainable cities will drive economic growth while increasing resilience and reducing climate impact. 16
- With almost half of its population living in urban areas Senegals level of urbanization 49 percent is higher than the average for SSA 42 percent. 16
- The CCDR underscores the urgency to take swift adaptation and mitigation measures to safeguard cities and regions against climate change. 16
- Digital innovations like smart city solutions integrating the Internet of Things IoT sensors and AI analytics are pivotal for urban climate resilience and sustainability 17
- If no action is taken to safeguard human capital climate change will inflict severe consequences on future generations. 17
- Climate change poses a long-term threat to Senegals young population and exacerbates gender and income inequalities. 18
- The impacts of climate change will also worsen the health status of the Senegalese population. 18
- Investing in human capital is essential for creating jobs that are resilient to the impacts of climate change and that can accompany the transition. 18
- Senegal is a party to the Paris Agreement on climate change and has committed to both adaptation objectives and GHG emissions reduction in its NDC. 19
- Achieving Senegals ambitious NDC goals will require substantial participation by the private sector both in developing climate solutions and participating in their financing. 19
- The CCDR estimates the financing needs of climate action at US1.36 billion per annum over to 2030 in present value discounted at 6 percent per year. 20
- Senegal can avail itself of various financing opportunities to address its joint development and climate needs drawing from a range of fiscal sovereign market and concessional sources as follows 20
- Carbon finance and energy subsidy reform 20
- The domestic financial sector 20
- Short-run priorities for DRF 21
- Senegals Sustainable Financing Framework 21