Project Document United Nations Development Programme Republic of Benin Strengthening the resilience of the energy sector in Benin Project Title to the impacts of climate change Outcome SP1: Growth and development are inclusive and sustainable, incorporating productive capacities that create employment and livelihoods for the poor and excluded UNDP Strategic Plan Output 5.1: Inclusive and sustainable solutions adopted to (2014-2017): achieve increased energy efficiency and universal modern energy access (especially off-grid sources of renewable energy Outcome 6: By 2018, institutions and populations of the intervention areas achieve better management of their UNDAF Outcome environment, of energy and natural resources, of the consequences of climate change, and of natural disasters and crisis. Outcome 1. Strengthening adaptation capacities of the energy sector to climate change Expected Project Outcome 2. Taking climate change into consideration in Outcomes energy policies and strategies Outcome 3. Reducing the climate vulnerability of energy supply sources in Benin Ministère de l’Energie, des Recherches Pétrolières et Implementing Minières, de l’Eau et du Développement des Energies partners Renouvelables (Ministry of Energy, Mining and Petroleum Exploration, Water and Renewable Energy Development) Société Béninoise d’Energie Electrique (Benin Electrical Energy Company), Ministère de l’Environnement et de la Responsible Parties Protection de la Nature (Ministry of Environment and Nature Protection), Ministère de l’Economie et des Finances (Ministry of Economy and Finance) Brief Description of the Project The project “Strengthening the resilience of the energy sector in Benin to the impacts of climate change” (Adaptation Project) – also called in short “NAPA Energy”, aims to support the Government of Benin’s strategy to adapt to climate change in the energy sector and to reduce the vulnerability of rural and urban communities to climate change and variability, through increasing the resilience of energy production, transport and distribution on the territory. The project addresses the second priority intervention identified by the 2008 NAPA of Benin: “Reducing populations’ vulnerability to climate change impacts by providing a better access to sustainable energy sources and protecting forest resources”. The first intervention concerns the adaptation capacities of the energy sector to climate change. It will strengthen these capacities in order to enable stakeholders to integrate climate risks in energy planning and to face climate risks, so that risks of economic losses due to climate change are reduced. The goal of the second intervention is to support the development of new frameworks for energy policies and strategies that will take climate change into consideration. Climate change issues and adaptation measures should be integrated into policies and strategies both at the national scale, and in vulnerable areas identified by the NAPA. The third intervention will take action to reduce climate vulnerability of energy supply sources in Benin. It will focus on the resilience of watersheds, of forest areas supplying wood for energy, and of electricity production and distribution facilities. It will assess the vulnerability of these areas and take protective measures, involving all stakeholders, to protect these energy sources. Moreover, it will support the development of alternative energy production sources for vulnerable communities. UNDAF Program Period: 2014-2018 Total resources: USD 39,570,000 Regular (managed Atlas Award ID: 00090819 resources: Atlas Project ID: 00096410 GEF : USD 8 million PIMS# 4979 UNDP (TRAC) : USD 500,000 Start date: July 2016 Other : End date: June 2021 *Government PAC Meeting Date: tbd (MERPMEDER) USD 8 million *Government (MEPN) USD 8 million Management arrangements NIM *NGO (Good planet): USD 70.000 *Private sector (CEB): USD 15 million Agreement of MERPMEDER: Date: Agreement of UNDP: Date: 3 Table of content List of Acronyms ................................................................................................................ 5 I. Situation Analysis .................................................................................................... 8 1.1. National context....................................................................................................... 8 1.2. National energy context ......................................................................................... 14 1.3. Barriers and adaptation measures ........................................................................ 26 1.4. Rationale for GEF and UNDP involvement ........................................................... 34 II. Intervention strategy ............................................................................................. 36 2.1. Relevance of the project under the United Nations Development Assistance Framework ................................................................................................................... 36 2.2. UNDP support strategy on climate change adaptation in Benin ............................ 37 2.3. Synergies .............................................................................................................. 40 III. Project objectives, results and activities ................................................................ 42 3.1. Objective ............................................................................................................... 42 3.2. Outcomes .............................................................................................................. 42 3.3 Expected results ..................................................................................................... 42 3.4. Project Outcomes, Outputs and Activities ............................................................. 42 Component 1: Mainstreaming adaptation to climate change into energy policies and management and planning strategies and tools ........................................................... 45 Component 2: Sustainable land and forest management practices for strengthening the climate resilience of the zones supplying wood for energy ........................................... 48 Component 3: Energy use and production - Technology transfers to strengthen the resilience of livelihoods and living conditions of the vulnerable communities ............... 59 3.5. Project indicators, risks and assumptions ............................................................. 65 3.6. Risk analysis and risk management measures ..................................................... 68 IV. Logical framework ................................................................................................. 76 V. Table budget and Work Plan ................................................................................. 85 VI. Management arrangements .................................................................................. 89 VII. Monitoring framework, evaluation, reporting and audit ......................................... 93 VIII. Legal context ......................................................................................................... 98 IX. ANNEXES ........................................................................................................... 102 Annex A: Analysis of stakeholders in Benin ............................................................... 102 Annex B: Review of national projects, policies, legislations and strategies ................ 110 Annex C: .................................................................................................................... 117 4 List of Acronyms ABE Agence Béninoise pour l'Environnement (Benin Environment Agency) ABERME Agence béninoise de l’électrification rurale et la maîtrise d’énergie (Benin rural electrification and energy management agency) AfDB African Development Bank AISER Association Interprofessionnelle des Sociétés d’Energies Renouvelables ALCRER Association de Lutte Contre le Racisme l’Ethnocentrisme et le Régionalisme ANADER Agence National pour le Développement des Energies Renouvelables AR5 Fifth Assessment Report of the IPCC AWP Annual Work Plan BCEAO Banque Centrale des États de l'Afrique de l'Ouest BIDC Banque d'investissement et de développement de la CEDEAO BMZ German Federal Ministry for Economic Cooperation and Development CCDARE Climate Change Adaptation and Development Initiative CCIB Chambre de Commerce et d'Industrie du Bénin CDM Clean Development Mechanism CENATEL Centre National de Télédétection et de Suivi Ecologique CFAF CFA franc CEB Communauté Electrique du Bénin CePEB Centre de partenariats et d’expertise pour le développement durable CMEICB Commission de Modélisation Economique des Impacts et de l’Intégration de Changements Climatiques dans le Budget Général de l’Etat CNDD Commission Nationale de Développement Durable CNP Conseil national de patronat CO Country Office CO2 Carbon dioxide CO2e Carbon dioxide equivalent CONTROLEC Agence de Contrôle des Installations Electriques Intérieures COP Conference of the Parties DFID Department for International Development (United Kingdom) DGA Direction générale de l’agriculture DGCC Direction Générale des Changements Climatiques DGE Direction Générale de l’Environnement DGFRN Direction Générale des Forêts et Ressources Naturelles DNM Direction National de la Météo DOI Direction de l’organisation internationale DPP Direction de la programmation et de la prospective EIB European Investment Bank