The World Bank Group (WBG) and the International Monetary Fund (IMF) announced the first country benefiting from the Enhanced Cooperation Framework for Climate Action.
Madagascar will be the first country to benefit from the Framework in the context of the Resilience and Sustainability Facility (RSF) arrangement approved by the IMF Executive Board, and the WBG’s active engagement on climate change in the country.
According to a combined statement issued by both global lenders, through the Framework, WBG-IMF coordinated efforts will strive to further support the country’s resilience in the face of climate change, working closely with other development partners as the climate change is exacerbating poverty in Madagascar.
The Framework aims to support efforts by country authorities to bring together development partners, the private sector and civil society to address the effects of climate change, the statement added.
“Building on IMF-WBG analytical expertise and financing instruments, the institutions will jointly provide critical support to the design and implementation of country authorities’ climate actions. This will be done through an integrated, country-led approach to policy reforms and climate investments, including where applicable through complementary and well-sequenced reform measures,” it added.
Madagascar is the first country to benefit from this Framework, building on analyses 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 areas where policy synergies and capacity development are being coordinated among the country authorities, the IMF and the WBG include the promotion of green and resilient investments and adaptation interventions that will deliver immediate development benefits.
This includes IMF support to improve public investment management while the WBG focuses on the implementation of a new mining code to address social and environmental impacts. It also covers support for the expansion of renewable energy to help close the gap in electricity access in the country. The WBG will support the reduction of electricity costs and the development of renewable energy production, while the RSF will help to operationalize a dedicated financing vehicle to promote clean energy projects including in rural areas.
Madagascar will also 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 to mobilize additional programmatic and project climate financing that could be implemented in 2025.
