Climate Finance Report 2024

Chapter 5 | PROJECTS CONTRIBUTING TO THE OPEC FUND’S CLIMATE FINANCE

In Senegal, climate hazards, particularly floods and droughts have had severe human and economic impacts over the last 40 years, with floods accounting for nearly half of weath- er-related hazards and droughts affecting the largest num- ber of people. Additionally, climate change is causing pop- ulation movements as pastoralists leave dry pastures and people relocate from flooded coastal areas. Senegal’s coast- al zones, home to 52 percent of the population, 68 percent of GDP and 90 percent of industrial facilities, are particularly vulnerable to these changes. Accelerated sea level rise is ex- pected to increase coastal erosion, flooding and salinization, with the population at risk in the capital Dakar projected to rise by 20-30 percent by 2050 and economic damages potentially increasing by 30 percent. 52

ecosystems and enhancement of agricultural practices. This dual approach aligns with the project’s goals to mitigate climate change effects and adapt to its impacts, contribut- ing to sustainable development and climate resilience.

Expected Outcomes

The OPEC Fund’s US$20 million loan is vital for modernizing agricultural infrastructure under the PROVALE-CV project, integrating both grey and green infrastructure for develop- ment, mitigation, and adaptation.

The loan supports climate mitigation by funding energy-effi- cient stoves to cut CO 2 emissions and protecting mangroves to prevent ecosystem degradation and reduce GHGs.

Purpose of the Loan

It also enhances climate resilience through the construction of 131 water retention dikes, rehabilitation of eight ponds, and establishment of eight water points. These efforts im- prove water management and support horticulture projects that create income opportunities for women and youth. The loan includes upgrading marketing infrastructure by rehabilitating 100 km of rural roads and building 70 ware- houses, improving market access and reducing post-harvest losses. The project’s Sustainable Natural Resources Management Plan includes anti-erosion works, reforestation, and man- grove restoration. Establishing 32 village nurseries and dis- tributing 6,000 improved stoves will promote sustainable land use and boost local livelihoods. PROVALE-CV aligns with Senegal’s updated NDC and Na- tional Adaptation Plan, addressing climate challenges by im- proving infrastructure, mobilizing water resources, and sup- porting climate-smart practices to reduce GHG emissions and enhance resilience.

Agriculture in Senegal is predominantly characterized by family farming in semi-arid zones, heavily reliant on rain-fed irrigation. The sector faces substantial risks from drought, land degradation and the effects of climate change. Several structural challenges hinder the integration of smallholder agriculture and livestock development into the market econ- omy. These include weak local support institutions, poorly organized producer groups, inadequate market infrastruc- ture, low-profitability technologies, limited formal private sector investment, unorganized sectors (with the exception of a few crops), restricted access to credit for inputs and equipment, and ongoing degradation of natural resources. In response to these challenges, the PROVALE-CV initiative aims to foster strong, inclusive and sustainable economic growth, enhancing the living conditions of rural communi- ties. The project focuses on boosting agricultural produc- tion, rural employment and income through sustainable water management, agricultural value chain development, improved access to production areas and storage infrastruc- ture and capacity building for stakeholders. Additionally, the loan is designed to address climate change impacts by financing investments that reduce GHG emis- sions and enhance resilience to climate-related vulnerabil- ities. Specifically, the loan targets improvements in energy efficiency, protection and restoration of marine and terrestrial

Assessment according to the Joint MDB Methodology for Tracking Climate Finance

The OPEC Fund financed mitigation and adaptation activi- ties in PROVALE-CV.

52 Senegal’s country profile on the website for West Africa Coastal Areas Management Program (WACA): Whttps://www.wacaprogram.org/country/senegal

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