Senegal

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

Senegal is advancing its carbon pricing agenda to support its climate commitments—specifically, its Nationally Determined Contribution (NDC) targets—a 7% unconditional and a 29% conditional emission reduction by 2030. The country is building on institutional capacity developed under the Clean Development Mechanism and and cooperation on bilateral agreements on Article 6, including with Japan, Korea, Norway, Singapore, and Switzerland).

Objectives & Activities

The PMI Program supports the country in preparing for and implementing carbon pricing instruments and cooperation on Article 6 through technical, legal, and institutional assistance:

• Carbon Tax Design and Impact Assessment: Support the design of a potential carbon tax, including modeling economic, employment, and informality impacts, to contribute to a national implementation roadmap
• Operational Framework for Article 6: Assist in developing and validating the regulatory and procedural framework for Article 6 implementation, including drafting of a carbon market decree and a manual of procedures
• Registry and Monitoring, reporting, and verification (MRV) Framework and Digitalization: Support the development of the national Registry and MRV system, and assess digital infrastructure needs and options to enable transparent emissions tracking and compliance
• Marginal Abatement Cost (MAC) Curve Development: Develop MAC curves to support decision-making on sector prioritization and international market participation under Article 6
• Cross-Cutting Just Transition and Stakeholder Engagement: Implement a multi-stakeholder engagement strategy, including capacity-building and consensus-building activities, with an emphasis on just transition principles and inclusion of vulnerable groups
• Offering Support for Climate Legislation: Provide technical input to support the drafting of a national climate law, including provisions for carbon market governance and legal authorization for Article 6 participation