GCA working with the International Monetary Fund to enhance adaptation into the Resilience and Sustainability Facility for Benin
R
otterdam, the Netherlands, 15 December 2023 – The Global Center on Adaptation (GCA) announced today that is providing technical assistance to the International Monetary Fund (IMF) to enhance adaptation in Benin’s US$200 million Resilience and Sustainability Facility (RSF).
The RSF will support the authorities’ goal to mainstream climate considerations in policymaking and complement the Extended Fund Facility (EFF)/Extended Credit Facility (ECF) in supporting overall socio-economic resilience in Benin.
The identified RSF reform measures build on the authorities’ national adaptation plan and existing diagnostics, including the IMF’s Climate Public Investment Assessment (C-PIMA) and the World Bank’s Country Climate and Development Report (CCDR). The Global Center on Adaptation has been leveraging its expertise on climate adaptation to further strengthen climate adaptation in the matrix of policy measures of the RSF. In consultation with the IMF, GCA will identify areas of additional technical assistance for the implementation of these policy measures.
Tackling climate change challenges is essential for Benin’s long-term macroeconomic resilience. The country is one of the world’s most vulnerable to climate change. Temperatures are expected to rise by 2.6°C to 3.27°C by 2100, and changes in rainfall patterns and intensity will further exacerbate droughts and floods in the country.
Without any additional adaptation effort, the World Bank Country and Climate Development Report (CCDR) estimates that average annual GDP losses will increase over time and could reach up to 19 percent of GDP by 2050. Between half a million to 1 million additional people would remain in poverty by 2050 without adaptation action with women and unskilled workers the most affected.
Professor Patrick Verkooijen, CEO of the Global Center on Adaptation, commenting on the announcement said:
“Africa is doing all it can to adapt to the consequences of climate change that are not of its making. But it cannot adapt alone. The financing gap is enormous and so are the continent’s needs. Without adaptation, Benin’s public debt will become increasingly unsustainable. I am pleased that our work with IMF will help address the key structural challenges that expose Benin to climate shocks and should help mitigate balance of payment risks and catalyze other sources of climate financing.”
World Bank simulations show that if Benin invests in certain resilience and adaptation measures in the coming decades, poverty rates will be lower than without any climate action. Almost half a million fewer people would be living under the poverty line by the end of the projection period compared to a scenario without any policy interventions.
