Programme D’appui Décentralisé A La Finance Climat (Decentralized Climate Finance Programme – Padfc) | Benin Fonds National Environnement et Climat [National Fund for the Environment and Climate – FNEC] 30 January 2017 PROGRAMME D’APPUI DÉCENTRALISÉ A LA FINANCE Project/Programme Title: CLIMAT [DECENTRALIZED CLIMATE FINANCE PROGRAMME – PADFC] Country/Region: BENIN Fonds National Environnement et Climat [National Fund for the Accredited Entity: Environment and Climate – FNEC] – accreditation pending Ministère du Cadre de Vie et du Développement Durable National Designated Authority: [Ministry of the Environment and Sustainable Development – MCVDD] PROJECT / PROGRAMME CONCEPT NOTE GREEN CLIMATE FUND | PAGE 1 OF 19 Please submit the completed form to [email protected] A. Project/Programme Information PROGRAMME D’APPUI DÉCENTRALISÉ A LA FINANCE CLIMAT A.1. Project/programme title [DECENTRALIZED CLIMATE FINANCE PROGRAMME – PADFC] A.2. Project or programme Programme A.3. Country(ies) / region BENIN A.4. National designated Ministère du Cadre de Vie et du Développement Durable [Ministry of the authority(ies) Environment and Sustainable Development – MCVDD] Fonds National Environnement et Climat [National Fund for the Environment and A.5. Accredited entity Climate – FNEC] – accreditation pending (implementing entity) Executing Entities: Direction Générale Environnement Climat [Directorate General for Environment and Climate – DGEC], Secrétariat Permanent de la Commision A.6. Executing entity / Nationale des Finances Locales [Permanent Secretariat of the National Commission beneficiary for Local Finance – SP/CONAFIL], devolved government departments, local governments, contracted service providers Beneficiaries: Local communities A.7. Access modality Direct☒ International☐ A.8. Project size category (total investment, million Micro (≤10) ☐ Small (10<x≤50) ☒ Medium (50<x≤250) ☐ Large (>250) ☐ USD) A.9. Mitigation / adaptation Mitigation☐ Adaptation☒ Cross-cutting☐ focus A.10. Public or private public Which of the following targeted results areas does the proposed project/programme address? Reduced emissions from: ☐ Energy access and power generation (E.g. on-grid, micro-grid or off-grid solar, wind, geothermal, etc.) ☐ Low emission transport (E.g. high-speed rail, rapid bus system, etc.) ☐ Buildings, cities, industries and appliances (E.g. new and retrofitted energy-efficient buildings, energy-efficient equipment for companies and supply chain management, etc.) ☐ Forestry and land use A.11. Results areas (E.g. forest conservation and management, agroforestry, agricultural irrigation, water treatment and (mark all that apply) management, etc.) Increased resilience of: ☒ Most vulnerable people and communities (E.g. mitigation of operational risk associated with climate change – diversification of supply sources and supply chain management, relocation of manufacturing facilities and warehouses, etc.) ☒ Health and well-being, and food and water security (E.g. climate-resilient crops, efficient irrigation systems, etc.) ☒ Infrastructure and built environment (E.g. sea walls, resilient road networks, etc.) ☒ Ecosystems and ecosystem services (E.g. ecosystem conservation and management, ecotourism, etc.) 1Please use the following naming convention for the file name: “[CN]-[Agency short name]-[Date]-[Serial number]” (e.g. CN-ABC-20150101-1). PROJECT / PROGRAMME CONCEPT NOTE GREEN CLIMATE FUND | PAGE 2 OF 19 A.12. Project / programmelife ………5 years…….. span A.13. Estimated Start: 2018………………………... implementation start and end date End: 2022…………………………. B. Project/Programme Details The Fund requires the following preliminary information in order to promptly assess the eligibility of project/programme investment. These requirements may vary depending on the nature of the project/programme. Overview of decentralized climate finance in Benin The decentralization process began in the 1990s. A new legal and administrative framework was subsequently established in 1999-2001 (Art. 93 to 96 of Act no. 97-029 of 15 January 1999 on the organization of communes in the Republic of Benin). The communes are the only fully decentralized entities and are invested with three different forms of power – devolved, shared and delegated. Communes are required to produce their own local development plans according to central government guidelines. The new councils – voted in following the local elections in 2015 – are currently working on plans for 2016-2020. The communes receive the majority of their funding from two sources: direct payments from central government and aid from technical and financial partners (TFPs). Most communes still have limited mobilization of their own resources. Direct payments from central government come from the Fonds d’Appui au Développement Local [Local Development Support Fund – FADeC] – a national mechanism, set up in 2008, to fund local development in Benin. The priorities for the coming years include building administrative, technical and financial capacities and strengthening local authority management. These priorities are confirmed in the Programme d’Action du Gouvernement [Government Action Programme – PAG] for 2016-2021, as defined by the new Government (which came to power in April 2016). The PAG includes a specific action entitled “Building decentralization process capacities”, which forms part of a broader strategic objective entitled “Balanced and sustainable development of the national space” (Pillar: “Improving living conditions for Benin’s population”). There is therefore a need for greater recognition of climate change at the local level. The Government has made clear its intention to devolve greater responsibility on this issue to the B.1. communes, in line with the establishment of the new strategic and operational framework on Project/programme adaptation, known as the Plan National d’Adaptation [National Adaptation Plan – PNA] (currently description under development). While responsibility for environmental conservation rests with the communes, (including no explicit mention is made of climate issues. In 2016, however, a new methodological framework objectives) was produced for Plans de Développement Communaux [Communal Development Plans]. This guide is currently being disseminated and includes climate perspectives throughout the commune planning/programming cycle. This naturally raises the question of funding, with substantial funds needed to support local adaptation efforts and to strengthen both competencies and infrastructure. Building on past pilot schemes (in particular the LoCAL project initiated in 2013), the Government is aiming for large- scale deployment of mechanisms to help address local adaptation challenges. This area of intervention is one of the stated adaptation priorities of the country’s intended nationally determined contribution (INDC), as prepared in 2015 (measure 5: Strengthen local governance of climate change adaptation finance). Defined programme Objectives and expected outcomes The overall objective of the programme is to support climate finance decentralization and, in doing so, to promote greater responsibility for adaptation issues at the communal level. The ultimate aim is to enhance local resilience to climate change. The specific objectives are as follows: (i) to devolve greater responsibility for climate issues to the communes by helping them to plan, budget for, implement and monitor adaptation measures; (ii) to finance investment measures identified as priorities by the communes, in consultation with the communities; and (iii) to consolidate and share lessons learned. PROJECT / PROGRAMME CONCEPT NOTE GREEN CLIMATE FUND | PAGE 3 OF 19 Intervention components The proposed programme includes four intervention components: Component 1. Establish, at the national level, a sustainable mechanism for self-managed and transparent implementation of adaptation efforts at the local level. - Outcome 1.1. Synergy and coordination between adaptation actions are improved at the local level (intervention frameworks). - Outcome 1.2. A sustainable, FNEC-coordinated financing mechanism is established at the national level and is integrated or aligned with the FADeC procedures. Component 2. Build the capacities of local development stakeholders to implement climate change adaptation measures effectively. - Outcome 2.1. Tools and methodologies are developed in accordance with commune needs, including access to climate data. - Outcome 2.2. Communal development stakeholders (elected officials, staff, communities, decentralized government departments, private service providers, etc.) receive training and support to integrate climate change adaptation measures. - Outcome 2.3. Climate change adaptation is included in strategic and sector-specific planning documents at the local level. Component 3. Have the communes implement priority adaptation measures via a system of performance-based climate resilience grants. - Outcome 3.1. Communal development stakeholders (elected officials, staff, communities, decentralized government departments, private service providers, etc.) receive training and support to implement climate change adaptation measures. - Outcome 3.2. Natural resource preservation measures are implemented. - Outcome 3.3. Smallholder farm resilience and food security measures are implemented. - Outcome 3.4. Climate-resilient infrastructure is established to improve natural risk prevention and management. Component 4. Monitor, build on and consolidate outcomes and knowledge. - Outcome