Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial Resilience
• Capital Market Development
• Local Currency Finance Advocacy
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Hedged USD 64 million in financing for renewable energy and energy efficiency projects.

Social Achievements

• Supported financing contributing to nearly all UN SDGs, particularly those related to poverty reduction, economic growth, and access to energy.
• De-risked USD 302.7 million in financing to micro, small, and medium enterprises (MSMEs).

Governance Achievements

• First sovereign hedges for Uzbekistan and Jamaica, improving debt sustainability.
• Technical assistance program with Georgia's Ministry of Finance to improve currency risk management.

Climate Goals & Targets

Environmental Challenges

• Economic turmoil due to the Ukraine war reduced ability to offset currency risk in some countries.
• Currency depreciation in several countries impacting debt sustainability.
• Limited access to local currency financing in many low-income countries.

Mitigation Strategies

• Developed country models for pricing in markets with no data (FPAS).
• Program to reduce hedging costs and stimulate local currency use.
• Technical assistance to help DMOs manage currency risk.
• Risk transfer to private investors to increase capacity.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Increased local currency financing for climate projects.

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation, and Infrastructure)
• SDG 13 (Climate Action)

TCX's activities contribute to these goals by de-risking investments in renewable energy, supporting MSMEs, and promoting sustainable economic growth.

Environmental Metrics

ESG Focus Areas

• Financial Resilience
• Climate Finance
• Sustainable Development Goals (SDGs)

Environmental Achievements

• Hedged USD 334 million in Sub-Saharan Africa, with a significant increase in deals in infrastructure and energy sectors (roughly 32% of total activity in the region, with most going to energy and infrastructure projects).

Social Achievements

• USD 1,477 million to micro, small, and medium enterprises (MSMEs); USD 82 million to renewable energy and energy efficiency projects; supported financing towards nearly all UN Sustainable Development Goals, but in particular SDGs 1, 7, 8, 10 and 17.

Governance Achievements

• Increased awareness and understanding of currency risk through advocacy, publications, and surveys; developed a 'Roadmap to Financial Resilience' proposing policy actions to mitigate FX risk and improve debt sustainability.

Climate Goals & Targets

Environmental Challenges

• High volatility and interest rates in 2023, coupled with FX shortages in multiple countries; debt sustainability issues persist for public borrowers; lack of awareness about currency risk and how to manage it among many DMOs.

Mitigation Strategies

• Established the EU Market Creation Pricing Facility to reduce the cost of currency hedging products for specific countries and target sectors; intensified efforts to scale up hedging availability in the public sector; partnered with IMF to account for currency risk instruments in IMF’s Debt Sustainability Framework and build risk management capacities at Debt Management Offices; developed a 'Roadmap to Financial Resilience'.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products; increased investment in renewable energy.

UN Sustainable Development Goals

• SDG 1
• SDG 7
• SDG 8
• SDG 10
• SDG 17

TCX's activities contribute to these SDGs by improving financial resilience, supporting renewable energy projects, promoting sustainable development, reducing inequality, and fostering partnerships.