Designing a climate finance strategy for Sierra Leone

THE BACKGROUND

In recent years, Sierra Leone has faced significant climate challenges, including rising temperatures, irregular rainfall, and flooding, which disrupt agriculture and threaten food security. In particular, sea level rise and coastal erosion jeopardized coastal communities and ecosystems. Deforestation exacerbated climate impacts and reduces biodiversity. Water scarcity affected urban and rural areas, leading to sanitation and health issues. Therefore, the economy has become vulnerable as critical sectors like agriculture and fisheries have been negatively impacted.

Addressing these issues requires resilient infrastructure, sustainable practices, reforestation, and enhanced community adaptation efforts. Between 2020 and 2030, Sierra Leone is expected to face an estimated annual USD180 million financing gaps in implementing its climate change mitigation and adaptation targets.

THE PROJECT

Sierra Leone’s 2021 updated Nationally Determined Contribution (NDC) called for establishing a comprehensive NDC Investment Plan, including a strategy for meeting financing needs. In 2023, the World Bank received a formal government request to provide this assistance from the Ministry of Finance’s (MoF) newly established Climate Finance Unit (CFU).

THE RESULTS

The strategy established the current volumes of climate finance and outstanding needs by sector, outlined objectives as well as priority sectors and potential projects, and identified the most suitable financing instruments and channels for meeting these goals. Advisory services were also provided on the model for designing a national climate fund.