WASHINGTON, June 21, 2024 – The World Bank Group (WBG) and International Monetary Fund (IMF) announced that the Enhanced Cooperation Framework for Climate Action is now operational. Madagascar will be the first country to benefit from the Framework under the Resilience and Sustainability Facility (RSF) arrangement approved today by the IMF Executive Board, alongside active WBG engagement on climate change in the country.
Climate change is exacerbating poverty in Madagascar. Through the Framework, WBG-IMF coordinated efforts will strive to further support the country’s resilience in facing climate change, working closely with other development partners.
The Framework aims to support efforts by country authorities to bring together development partners, the private sector, and civil society to address climate change effects. Building on IMF-WBG analytical expertise and financing instruments, both institutions will jointly provide critical support for designing and implementing country authorities’ climate actions through an integrated, country-led approach to policy reforms and climate investments.
Madagascar is the first country to benefit from this Framework, building on analysis such as the WBG's Country Climate and Development Report (CCDR) and the IMF’s Climate Policy Diagnostics and Climate Macroeconomic Assessment Program (CMAP). Examples of coordinated policy synergies and capacity development include promoting green and resilient investments and adaptation interventions that deliver immediate development benefits.
This includes IMF support to improve public investment management while WBG focuses on implementing a new mining code addressing social and environmental impacts. It also covers expanding renewable energy to help close the gap in electricity access in Madagascar. The WBG will support reducing electricity costs and developing renewable energy production, while RSF will help operationalize a dedicated financing vehicle promoting clean energy projects, including in rural areas.
Madagascar will adopt a national climate finance mobilization strategy to strengthen its position as an attractive destination for climate-related investments. The IMF and WBG stand ready to support a country-led platform mobilizing additional programmatic and project climate financing that could be implemented in 2025.