Senegal has emerged as a central hub for climate finance and economic cooperation in Africa, strengthening its climate policy framework to translate environmental commitments into concrete development and investment opportunities. Under its Nationally Determined Contributions (NDCs) to the Paris Agreement, Senegal aims to reduce greenhouse gas emissions by 7% unconditionally and up to 29% with international support by 2030, focusing on energy, agriculture, land use, waste, and industrial processes. Adaptation priorities include coastal erosion, agriculture, water resources, fisheries, and health, with an estimated implementation cost of approximately $13 billion over 2020–2030. Achieving these goals requires targeted investments in infrastructure, technologies, and sustainable business models to attract both public and private capital, a transition supported by the UNDP Rome Centre for Climate Action and Energy Transition through its Platform for Investment Support and Technical Assistance (PISTA), backed by the Italian Ministry of the Environment and Energy Security.
In Senegal, PISTA focuses on three main areas: large value-chain infrastructure, climate-relevant SMEs, and a pipeline of future climate investments. One of the flagship initiatives is the development of a strategic cold chain infrastructure for the agri-food sector, led by the Ifria Cold Chain Development Company. The greenfield logistics hub, with a capacity of 10,000 pallet positions in the Diamniadio industrial zone near Dakar, requires $19–20 million in financing and aligns with Senegal’s NDC priorities on agricultural value chains and waste reduction. PISTA provides technical assistance to elevate project standards to international levels and facilitates dialogue with institutions such as the Italian Climate Fund managed by Cassa Depositi e Prestiti, supporting Senegal’s transition from climate plan to bankable project while aligning with Italy’s Mattei Plan for Africa cooperation.
Digital innovation and infrastructure also form a key pillar of climate action in Senegal. As part of the Italy–Africa Digital Flagship initiative, UNDP has helped design and engage stakeholders in bankable concept notes aligned with Senegal’s Vision 2050. Initiatives include smart agriculture projects leveraging digital services, technological solutions, and improved coordination within existing agricultural programs. Concept notes were also developed with public institutions, including the national tax authority and electricity company, emphasizing digital modernization as a driver for economic efficiency, inclusion, and institutional strengthening.
Small and medium-sized enterprises play a central role in Senegal’s climate-related innovation, particularly in solar energy, agricultural processing, water management, and digital solutions for agriculture. Many SMEs face challenges accessing finance, being too large for small grants but too small or risky for traditional bank credit. To address this, the Rome Centre and UNDP Africa Sustainable Finance Hub launched the “SDG Pipeline Builder x PISTA – Scaling African SMEs in Climate Resilience” initiative. This program supports local enterprises in strengthening governance and business planning, preparing them as reliable partners for economic cooperation with Italian and European actors while mobilizing risk capital and climate-related guarantees.
To expand Senegal’s investment portfolio further, PISTA launched its second global call on 15 January 2026, offering technical assistance tickets of up to $450,000 per project for feasibility studies, environmental assessments, and financial structuring. Senegal is among eight eligible African countries, with the initiative targeting advanced projects in clean energy, green manufacturing, and the blue economy. By providing structured support rather than fragmented interventions, the program enables public entities, public–private partnerships, and private developers to submit proposals aligned with mitigation and adaptation objectives, helping bridge the NDC financing gap and fostering sustainable, investable climate projects in the country.
