WAEMU Member States face the triple challenge of addressing the consequences of climate change, developing infrastructure considering strong anticipated demographic growth, and rebounding from the impacts of recent global shocks such as the COVID-19 pandemic and the war in Ukraine. Tackling these challenges requires sizeable long-term financing for these economies within existing fiscal constraints imposed by sovereign debt burdens, tightening global credit markets and rising interest rates. Concomitantly, these economies need to meet their economic development objectives while integrating the commitments developed within their Nationally Determined Contribution (NDC), which aim to combat climate change as part of broader national development plans.

This study therefore focuses on the feasibility of developing an active market for green bonds in the WAEMU region and aims to assess the potential for sovereign and corporate green bond issuances. The study highlights multiple deficiencies that may impede market development and provides feasible recommendations. It also presents requisite initiatives and interventions that can spur the emergence of such a market as well as opportunities for pipeline development.