Key facts
- The World Bank has provided an $875 million loan to Ivory Coast.
- A gas pact was signed between the World Bank and Ivory Coast.
- Ivory Coast launched a Sustainability-Linked Finance Framework.
- The framework links borrowing costs to environmental and climate goals.
- Targets include increasing renewable energy and controlling deforestation by 2030.
The World Bank has granted Ivory Coast an $875 million loan and signed a gas pact, signaling a new approach to sustainable development financing in Africa. The loan is structured under an innovative Sustainability-Linked Finance (SLF) Framework, which directly ties the country's borrowing costs to its environmental and climate targets.
Developed in collaboration with the World Bank Group, the SLF Framework aims to incentivize the achievement of ambitious sustainability commitments. Key targets include increasing the share of renewable energy (excluding hydropower) in the total installed electricity capacity from 1% in 2023 to at least 11% by 2030, a move projected to create new jobs. Additionally, the country is committing to stringent deforestation controls, ensuring forest cover losses do not exceed 300,000 hectares between 2025 and 2030, while simultaneously undertaking an ambitious reforestation effort to convert 1 million hectares into forest cover by 2030. These forestry initiatives are designed to foster new "green jobs."
The financing instruments tie the cost of borrowing to the achievement of predetermined sustainability goals. Côte d'Ivoire will benefit from an interest rate reduction if it surpasses its targets and face an increase if it does not. Robust reporting and verification mechanisms, including annual progress reports utilizing advanced technologies like remote sensing and geospatial monitoring, will support the framework. The World Bank's Feasibility and Ambitiousness Assessment (FAB) methodology was implemented to ensure the credibility and impact of these targets.