Overview

Description

Senegal is in the process of designing a national carbon pricing mechanism aimed at reducing greenhouse gas emissions and supporting its climate commitments under the Paris Agreement. The initiative seeks to apply a carbon tax on key sectors such as energy, industry, and transport, with the potential for revenue-neutral design (recycling revenues to reduce other taxes or support green investments). While the framework is under development, the initiative is aligned with Senegal’s broader climate strategy, including renewable energy promotion, participation in carbon markets, and engagement in regional carbon finance initiatives. The tax is intended to complement other climate policies rather than act as the sole instrument for emissions reductions.

Recent Developments

As of November 2025, Senegal is accelerating readiness for a national carbon market. According to Carbon?Pulse, the country expects to finalize its Article?6 regulation (under the Paris Agreement) and national carbon registry “in the coming months.”

Coverage

Senegal’s carbon pricing initiative primarily targets energy, industrial, and waste sectors, covering direct (Scope 1) emissions from fossil fuels, industrial processes, and some waste/biomass sources, with CO? and CH? as the main greenhouse gases; coverage thresholds and exemptions are not yet publicly specified, and certain sectors may participate in Article?6 carbon markets.

Pricing and Allocation Approaches

Not Specified

Compliance Approaches

Not Specified

Relation to Other Compliance CPIs

Not Specified

Covered Sectors

No eligible activities specified for this instrument.