Sierra Leone faces immense climate challenges and the country experiences rapidly changing precipitation patterns, rising temperatures and increased risks of extreme weather events. Average rainfall is projected to increase, and already heavy precipitation rates are expected to become more volatile and unpredictable heightening flood risks.

The rise in temperatures have increased the vulnerabilities of coastal communities as the sea level rises, which amplifies risks faced by significant share of the population, whose livelihoods is dependent on costal resources. Inland, a high proportion of the population lives in informal, unplanned and hazard-prone settlements, which pose risks to natural disasters. The vulnerability of precipitation is a source of risk to energy supply systems and climate resilient infrastructure in the country.

National response framework

Sierra Leone has been taking steps to mainstream climate change in its strategic economic planning and initiated actions to strengthen the framework for climate change adaptation and mitigation by developing a national climate change policy, an initial national adaptation plan, updating its National Determined Contributions (NDCs)last reviewed in 2021, and established a National Disaster Management Agency. The country’s Medium-Term National Development Plan also recognises the need to mainstream climate resilience as one of the critical enablers of successful implementation.

The financial challenge

The NDC of 2021 outlines three key funding channels: government budget allocations, private sector partnerships or loans, and international climate finance. The NDC had estimated US$3.47 billion needed for implementation up to 2030. The cost for mitigation and adaptation were estimated to be US$1.38 billion each. The average annual climate financing needs is estimated to be US$108 million.

In terms of climate finance inflows into the country, Sierra Leone has experienced a steady increase in receipt over time:

• In 2010 US$11.1 million and US$10.5 million was received for adaption and mitigation respectively

• Increased to US$ 23.5 million for adaptation and US$13.2 million for mitigation in 2015.

• By 2020, inflows of climate finance had increased to US$178 million, of which US$123 million was for adaptation and $73 million for mitigation.

Despite these inflows, significant climate finance gaps exist as adaptation and mitigation actions in the current NDC remain largely unfunded. To fully cover commitments, it is estimated that the government will need to allocate 10 percent of its annual budget to address climate change risks and prioritise adaptation measures and spend 40 percent of external development finance support, both of which are impractical. To put this in context, government spends about 6 percent of its total budget on agriculture which contributes more than 55 percent to GDP.

The annual finance need for the existing NDC is USD 347 million but the financing gap is estimated to be USD 180 million. The government is heavily indebted and have limited fiscal space as domestic resource mobilisation is low compared to regional peers.

Moving forward

The government is exploring various climate financing instruments and initiatives internationally with support from the Global Environment Facility, the Green Climate Fund and others. Private financing sources for climate action is critical whilst on the government front, the Ministry of Finance in 2023 set up a Climate Finance Unit to strengthen coordination and support the mobilisation of climate finance. The Parliamentarians for Climate Finance project can play a key role in by equipping lawmakers with the knowledge and tools to shape effective climate finance strategies to meet the financing needs for climate action in the country.