Opportunities for Increasing Financing For Sustainable Landscapes and Climate Adaptation in Madagascar
Madagascar has many development challenges associated with climate: between 1980 and 2010, droughts, earthquakes, epidemics, floods, cyclones, and extreme temperatures caused more than $1 billion in economic damage. Shoreline erosion from sea level rise is already a significant problem for their coastal ports and beaches. Its 3,000 miles of coastline and 250 islands are highly vulnerable to additional sea level rise from climate change.
Past development assistance and private sector investment in Madagascar have been hindered by political instability and governance issues. Madagascar’s high poverty rate, climate vulnerability, and unique terrestrial and marine biodiversity could help the country obtain new financing from impact investors and sustainable development funds.
This briefer summarizes four key trends in financing for sustainable landscapes (SL) and climate adaptation relevant to Madagascar: 1) international development assistance for SL and climate adaptation is available from multiple sources with different terms and conditions; 2) multilateral development banks are significant sources of public finance for climate change mitigation and adaptation; 3) blended finance and creative financing instruments can increase the effectiveness of private sector engagement; and 4) other countries offer models and lessons for financing sustainable landscapes and climate adaptation in Madagascar.