Côte d’Ivoire: Cooperation in action Green Bonds – a possible contribution to NDC implementation
In February 2020, the UNDP NDC Support Programme in Côte d'Ivoire (funded by the European Union, Germany and Spain), in collaboration with the Climate Bonds Initiative and with contributions from the government of Côte d'Ivoire, held a training event on sovereign green bonds for members of the Ivorian government.
The training aimed at building a common understanding of green bonds among key stakeholders and informing them about the opportunities of the green financial market and how these can be linked with the existing national bond system. Côte d’Ivoire routinely issues bonds on the international markets but has not done so specifically for green projects yet.
This initiative responds to the Ministry of Environment and Sustainable Development’s need to explore all options to mobilise more financial resources for key economic sectors as a means of achieving Côte d’Ivoire’s ambitious goal of reducing greenhouse gas emissions by 28 per cent by 2030.
Training participants included the Ministry of Environment and Sustainable Development (with a statement by its Minister Joseph Séka Séka), the Ministry of Economy and Finance, the Central Bank, the National Investment Bank, other line ministries and the financial market regulator of the West African Monetary Union.
Green bonds in West Africa – a promising approach
For the Ministry of Finance, which planned to raise over 200 billion US dollars in 2020 for priority development projects, the training event answered important questions, such as the minimum amount to raise, the eligibility of projects, the requirements for green bonds as opposed to regular bonds and the merits compared with regular bonds.
The line ministries recognised the potential funding opportunities that green bonds offer to their respective climate change mitigation projects. The National Investment Bank identified green bonds as an opportunity to diversify its capacities and eventually provide access to green bonds for its private sector clients.
The Regional Council for Public Savings and Financial Markets is very much in favour of Ivorian green bonds. As regulator of the West African Monetary Union’s financial markets, it has already put in place a legal framework for green bonds. However, member countries have yet to take advantage of it. Côte d’Ivoire's experience can send a strong signal to other countries to follow suit.
As at: 25/10/2022