Madagascar to be inaugural beneficiary under Enhanced Cooperation Framework for Climate Action

The Enhanced Cooperation Framework supports country authorities in orchestrating policy reforms and climate investments through an integrated, country-led approach.

The World Bank Group (WBG) and the International Monetary Fund (IMF) are proud to announce the operationalization of the Enhanced Cooperation Framework for Climate Action. Madagascar will be the inaugural beneficiary under this framework, leveraging the Resilience and Sustainability Facility (RSF) arrangement recently approved by the IMF Executive Board, alongside the WBG’s active climate initiatives in the country.

Tackling Climate Change and Poverty in Madagascar

Climate change is significantly exacerbating poverty in Madagascar. The WBG-IMF coordinated efforts under the Framework aim to bolster the country’s resilience against climate impacts, in collaboration with other development partners. This joint effort seeks to integrate development partners, the private sector, and civil society in addressing climate change.

Integrated Support for Climate Action

The Enhanced Cooperation Framework supports country authorities in orchestrating policy reforms and climate investments through an integrated, country-led approach. The WBG and IMF will utilize their analytical expertise and financing instruments to aid in designing and implementing effective climate actions.

Madagascar’s engagement with this framework builds on comprehensive analyses, including the WBG's Country Climate and Development Report (CCDR) and the IMF’s Climate Policy Diagnostics and Climate Macroeconomic Assessment Program (CMAP). These reports highlight areas for policy synergies and coordinated capacity development efforts among the IMF, WBG, and country authorities.

Key Focus Areas for Madagascar

1. Green and Resilient Investments: Promoting investments that enhance resilience and deliver immediate development benefits.

2. Public Investment Management: The IMF will provide support to enhance public investment management, ensuring effective use of resources for climate resilience.

3. Renewable Energy Expansion: Addressing the electricity access gap through the development and expansion of renewable energy sources. The WBG will focus on reducing electricity costs and enhancing renewable energy production, while the RSF will help establish financing mechanisms for clean energy projects, particularly in rural areas.

4. Mining Code Implementation: The WBG will assist in implementing a new mining code to mitigate social and environmental impacts, fostering sustainable development in the sector.

5. Climate Finance Mobilization Strategy: Madagascar will adopt a national strategy to attract climate-related investments. The IMF and WBG will support the creation of a platform to mobilize additional climate financing, with potential implementation in 2025.

A Milestone in Global Climate Cooperation

The Enhanced Cooperation Framework represents a significant step in global climate action, exemplifying how coordinated international efforts can support vulnerable countries like Madagascar in building resilience against climate change. This initiative underscores the WBG and IMF’s commitment to facilitating sustainable development through integrated climate strategies.