Guinea

Implementation period: 2023-2026 Funding amount: US$2 million Window: Readiness

Guinea is laying the foundational groundwork to introduce carbon pricing instruments (CPIs) and engage in international carbon markets, with a focus on the extractive sector and land use emissions. As a member of the West African Alliance on Carbon Markets and Climate Finance since 2017, the country also joined the Global Carbon Pricing Challenge (GCPC)—signaling its political commitment to carbon pricing as a tool for sustainable development and climate finance mobilization. Guinea is expected to experience an increase in mineral extraction, from iron ore, as well as bauxite, that is expected to lead to significant GDP growth, but also to increase energy demand in the next decade. The country’s National Climate Change Strategy (2019) outlines long-term objectives, while the creation of the National Intersectoral Committee on Climate Change (2021) and recent technical bodies reflect improved climate governance.

Objectives & Activities

The PMI Program in Guinea supports the country in designing and preparing key policies, institutions, and systems to operationalize carbon pricing and access climate finance, through technical assistance on:

• Designing a carbon price signal instrument for the mining sector: Develop a CPI tailored to Guinea’s economic and environmental context. The initial design, developed through a participatory process involving industry and government, was validated by the Prime Minister’s Office and the Ministries in charge of Mining, Environment, and Energy in October 2024. The instrument aims to reduce emissions, conserve forests, and support economic growth.
• Policy and regulatory frameworks for carbon pricing and Article 6 market participation: Support the development of legal and institutional frameworks, including draft climate change legislation and Greenhouse Gas reporting regulations for the extractive sector. Guinea has also established a National Climate Change Commission and a Carbon Market Expert Group to guide policymaking.
• Monitoring, reporting, and verification (MRV) systems and land-use sector readiness: Advance MRV infrastructure across sectors. In the land use and forest sector, detailed emissions data has been generated through the National Forest Monitoring System, laying the groundwork for an Emission Reductions Program, potentially unlocking tens of millions of US dollars in Results-Based Climate Finance, including from the World Bank’s multi-donor Trust Fund, Scaling Climate Action by Lowering Emissions (SCALE).
• Stakeholder engagement, capacity building, and just transition planning: Strengthen institutional awareness and national dialogue through targeted capacity-building and inclusive stakeholder engagement. The program integrates just transition principles to ensure carbon pricing aligns with human development goals.