Key policies and governance approach

The government of Côte d’Ivoire has expressed strong political will to adopt the concepts of green growth and sustainable development [8], evidenced by the creation of a Ministry in charge of the environment and sustainable development and the adoption of Law No. 2014-390 of the June 20, 2014, Guidance for Development. In addition to this law, the legal instruments of certain ministries have undergone modifications with a view to integrating the principles of sustainable development, including the electricity code, the mining code, the public procurement code, the investment code, etc. [9]. Notably, in 2016, Côte d’Ivoire embarked on a pathway toward green growth after the ratification of the Paris Agreement and adoption of the SDGs [8].

In accordance with the Paris Agreement, the State of Côte d'Ivoire revised its Nationally Determined Contribution (NDC) in 2022, by updating its efforts to reduce GHGs. Côte d'Ivoire's updated overall objective represents a reduction in GHG emissions across its economy of 30.41% in 2030 compared to the reference scenario, using national means, and a conditional reduction of 98.95% by 2030 compared to the reference scenario, subject to appropriate international financial support. Implementation of the country’s mitigation target (30.41%), which is estimated at 10 billion US$, could create approximately 34,800 jobs in all sectors. Additionally, adaptation is a priority for Côte d'Ivoire given its great vulnerability to the impacts of climate change. The cost of implementing adaptation programs in the most affected sectors is estimated at nearly US$12 billion. The priority sectors concerned are water resources, agriculture including livestock and aquaculture, forestry and land use, health and coastal zones. Adaptation measures could create 580,000 to 870,000 jobs [7].

In addition, the NDC considers cross-cutting aspects such as gender, the territorialisation of climate action, green jobs, and health and air pollution, which will generate significant co-benefits. For instance, taking gender into account can significantly improve climate governance, particularly in rural areas. With regards to green jobs, the country aims to reduce unemployment, while developing an economic model that is more respectful of the environment and human beings [7].

The preservation of the environment and the fight against climate change has also been strengthened in the country’s national planning. Côte d'Ivoire’s National Development Plan 2021-2025 (PND), which constitutes the main national benchmark for development policy, aims to achieve the economic, cultural, and social transformation necessary to raise Côte d'Ivoire, by 2030, to the rank of upper middle-income country. The plan revolves around six strategic development goals, namely: (i) acceleration of the structural transformation of the economy through industrialization and cluster development; (ii) human capital development and promotion of employment; (iii) development of the private sector and investment; (iv) strengthening of inclusion, national solidarity and social action; (v) balanced regional development, preservation of the environment and the fight against climate change; and (vi) strengthening of governance, modernization of the state and cultural transformation [9].

Successes and remaining challenges

The performance of green growth implementation has been tracked in Côte d’Ivoire using the Global Green Growth Institute (GGGI) Green Growth Index with a series of indicators across the four dimensions of green growth (1. Efficient and Sustainable Resource Use, 2. Natural Capital Protection, 3. Green Economic Opportunities, and 4. Social Inclusion). Currently, there is a lack of data for Sustainable Land Use, Green Jobs, and Green Innovation, which is being discussed with the government of Cote d’Ivoire under a project to develop a more specific Green Growth Index for Africa. But overall, Côte d'Ivoire is performing better within Efficient and Sustainable Resource Use and Natural Capital Protection, with a weaker performance in Social Inclusion, and with a current lack of data to draw meaningful conclusions for Green Economic Opportunities [8].

Access to green finance and climate finance remains a high priority for Côte d'Ivoire to support implementation of the country’s NDC [8]. The financing of the updated NDC, at a cost of about $22 billion, requires resources from climate funds and the private sector [5]. An increase in green investment at local and national levels is also essential to sustain the structural transformation of the national economy and establish a framework conducive to the country’s green growth. However, mobilizing climate finance and green investments in Côte d'Ivoire is challenged by an inadequate regulatory framework in the country that prevents financial institutions from creating green credit lines or promoting the development of greener bankable projects; a lack of national direct access entities that can access the Green Climate Fund; difficulties for national entrepreneurs and private sector companies to develop solid green business models; and an absence of national financial institutional capacities to evaluate green business models or projects [8].

In addition, there are several barriers that prevent the country from reaching improved coordinated climate action, including inefficient measures to assess the country’s efforts to mitigate climate change; difficulty in mainstreaming and materializing the notion of green growth into projects, programs, policies, and regulations; a lack of harmonization in sectoral policies, which hinders national planning of climate activities; the absence of a long-term low-emission development strategy (LEDS) to support and guide actions; and lack of coordination between the initiatives, obstructing the follow-up and evaluation of the impact of the actions [8].

Initiatives and Development Plans

The African Development Bank (AfDB) will mobilize 25 billion dollars to finance climate change adaptation and green growth projects in Côte d’Ivoire by 2025. Several sectors are concerned by this initiative, including renewable energy, green mobility and smart agriculture, which will create at least 500,000 jobs in the country [10].

Additionally, the World Bank will provide significant financial support to back reforms aimed at strengthening public and private investment, human capital, and the sustainable use of natural resources in Côte d’Ivoire. The $400 million First Investment for Growth Development Policy Financing is a budget support operation that will support Côte d'Ivoire's ambitious goal of doubling average individual income and reducing the current poverty rate from 39.5% to 20% by 2030. Specifically, this funding will help the government implement policies to lay the foundation for sustainable and inclusive private sector-led growth. For the sustainable management of natural resources, the measures envisaged will support traceable and sustainable cocoa production, to ensure continued access to the European Union market and guarantee the livelihoods of rural populations, as well as strengthen the environmental regulatory framework, with particular attention to climate-vulnerable coastal areas [11].

In August 2021, Emergence Plaza, owner of the Cosmos Yopougon shopping mall in Abidjan, issued a corporate green bond at a value of $18.1m. This demonstrated a new type of financing that could boost sustainable construction across the country. Emergence Plaza sold the bond to Benin-headquartered Société Ouest Africaine de Gestion d’Actifs to improve its cash position. It was issued at a rate of 7.5% over eight years. Cosmos Yopougon also achieved green status in 2019, by way of the Excellence in Design for Greater Efficiencies (EDGE) certification from the International Finance Corporation. According to Emergence Plaza, the shopping mall used the EDGE system to reduce its carbon emissions by 44% in 2020. This marks the first example of green bonds issued in francophone West Africa, as commercial banks typically do not issue climate financing – meaning companies rely on capital markets to connect them with buyers [12].