The Government of Madagascar, in partnership with International Financial Institutions (IFIs) and development partners, has unveiled a series of initiatives aimed at enhancing climate finance in the country. The announcement was made at COP29 in Baku, Azerbaijan. These initiatives include a climate finance mobilization strategy, a lemur bond, and a results-based grant financing facility for distributed renewable energy. The goal is to boost private and public sector investment to tackle climate-related challenges and explore investment opportunities.
Madagascar is highly vulnerable to climate change due to its geographical features but also boasts rich natural resources, being one of the top five biodiversity hotspots globally. To meet its climate objectives and bridge its Nationally Determined Contributions (NDC) funding gap, Madagascar estimates it will need $24.4 billion by 2030.
As the first pilot country under the IMF-World Bank Enhanced Cooperation Framework for increased climate action, Madagascar received approval in June 2024 from the IMF Executive Board for a Resilience and Sustainability Facility (RSF) arrangement worth $321 million. This arrangement aims to bolster adaptation to climate change, improve resilience against natural disasters, support mitigation efforts, protect ecosystems, and foster green private sector investment. The RSF aligns with policy recommendations from the World Bank Group’s Country Climate and Development Report (CCDR). A roundtable on climate finance was co-hosted by the IMF, World Bank, and local authorities in Antananarivo in October 2024. It gathered IFIs, development partners, and private sector representatives who identified key collaboration areas: policy reform, financing project preparation facility for adaptation, and technical assistance.
Minister Rindra Hasimbelo Rabarinirinarison from the Ministry of Economy and Finance emphasized the need for substantial funding within the NDC framework to reduce greenhouse gas emissions by 28% by 2030 while strengthening resilience to climate change: "We need significant funding within the framework of the Nationally Determined Contribution - NDC 2... I welcome the efforts of to crystallize this amount should be carried out through a joint public-private momentum..."
Minister Max Andonirina Fontaine from the Ministry of Environment and Sustainable Development highlighted that "The Climate Finance Mobilization Platform marks a pivotal moment for Madagascar’s vision..." He expressed gratitude towards partners like IMF, World Bank, AfDB, GEF for their trust and collaboration.