COP26: MCC Climate-Smart Development

MCC is a leader among government foreign assistance agencies and recognizes that climate change, poverty and economic growth are inextricably linked. The countries most impacted by it are also least able to afford its consequences or mitigate its devastating impact.

Learn more about MCC’s expansive climate development work with our partner countries as we update this page daily to highlight our work based on the COP26 themes and discussions.

MCC looks to catalyze private capital for climate finance, elevating support for critical services and systems essential for sustainable growth and poverty reduction. This includes maintaining a coal free policy across our investment portfolio, supporting countries’ nationally determined contributions (NDCs), investing in adaptation and climate resilient infrastructure and focusing on the needs of women and those most vulnerable to climate change.

The $474 million Indonesia Compact supported the government’s commitment to improving natural resource management and maximizing opportunities for investment in renewable energy and sustainable agricultural practices, including through engaging and leveraging the private sector and other external resources.  

MCC’s investment in the energy sector is critical to create self-sustaining electrical systems in our partner countries to meet their current and future household and business needs, as well as attract private investment to stimulate economic growth. MCC is working to promote low carbon economic development to support countries in their transition away from fossil fuels.

On average The Gambia experiences 19 power outages per day, while the average in sub-Saharan Africa is 8.9 outages per month. MCC’s upcoming $25 million Threshold Program with The Gambia will work to improve the electricity reliability while reducing the frequency and duration of outages by enhancing the fiscal and operational management of the national electricity utility.

Through the Ghana Power Compact, MCC is helping the Government of Ghana by improving the reliability and affordability of electricity by developing new or improved efficiency standards for appliances, supporting education in energy efficiency, investing in more efficient Government buildings, and exploring demand side management measures, like converting streetlights to more efficient LED technology.

Through the Liberia Compact, Mount Coffee Hydropower Plant rehabilitation on the St. Paul River more than doubled the power generation capacity of the entire country. Hydropower is fueled by water, making it a clean, sustainable, and renewable fuel source. Additionally, MCC worked to ensure considerations such as sustainable fishing practices were a key element of the compact. This included creating a fish identification guide, the first document of its kind in the country’s history and ensuring minimal environmental and ecosystem disruption during and after project completion.

The Sierra Leone energy sector roadmap—developed through the $44 million Sierra Leone Threshold Program and adopted by the SL government—includes guidance for the country to harness Sierra Leone’s renewable resources (hydroelectric and solar resources in particular) in order to plan more effectively for the country’s long-term energy needs, while encouraging private sector investments.

MCC invests in projects that allow countries to manage their natural resources more sustainably while creating jobs and unlocking new economic opportunities.

The $20 million MCC Threshold Program for Solomon Islands will work to generate more reliable and sustainable benefits from forest resources and address land access and investment facilitation issues that have prevented Solomon Islands from realizing its potential in tourism.

MCC invests in programs that work to reduce the vulnerability of communities to the effects of climate change.

The $437 million Niger Compact focuses on agriculture, including a climate-resiliency project that seeks to strengthen rural communities against climate change.

MCC’s upcoming program in Mozambique, is exploring integrated climate-forward initiatives including community-led mangrove and seagrass reforestation, land-use planning, blue carbon credits, strengthening capacity and ensuring the sustainability of MCC’s infrastructure investments

MCC is committed to expanding our efforts to understand and address impacts of climate change on women, vulnerable and marginalized populations in our investments.

Given that women, the poor, and other disadvantaged groups live in locations that are often most exposed to climate risks, they can also be part of the solution to supply better management of natural resources and take advantage of new opportunities created by the green economy.

In October 2021, MCC awarded the second round of Climate Resilient Agriculture grants in Niger; worth $2.7 million and more than 50 percent of beneficiaries are women and youth.

In Tunisia, MCC is supporting a climate-sensitive project that will address women’s job insecurity by promoting their participation in water user associations and on agricultural cooperatives.

MCC’s climate-smart investments in transport build sustainable infrastructure that is resilient to climate change while promoting policy and institutional reforms that allow governments to better manage this vital sector.

In the Philippines, the MCC-funded road on Samar Island withstood one of the strongest typhoons in history thanks to key climate-proofing measures such as raising bridges to allow for more clearance during floods, improving drainage infrastructure, and protecting against slope erosion. In the aftermath of typhoon Haiyan, the road served as a crucial artery for the emergency response, subsequent reconstruction and the ongoing development of Samar Island.