Chapter 5 | PROJECTS CONTRIBUTING TO THE OPEC FUND’S CLIMATE FINANCE
Investments in household stoves are eligible for mitigation finance. According to the Common Principles for Climate Mitigation Finance Tracking, these investments fall under the category “energy efficiency, on-site renewable energy, CO 2 e-emission reduction and carbon sinks in buildings,” specifically the activity “measures that reduce net energy consumption, resource consumption, or CO 2 e emissions, or increase plant-based carbon sinks in greenfield and brown- field buildings and associated grounds.” This includes energy efficiency improvements in equipment in existing buildings. Investments in mangrove protection and restoration are also eligible for mitigation finance. According to the Com- mon Principles, these investments fall under the category “marine and other water habitats: GHG-emission reduc- tion,” specifically the activity “projects that reduce GHG emissions from the degradation of marine ecosystems or other water-based ecosystems.”
vulnerabilities and the linked activities, adaptation finance can be assessed. The adaptation activities are confined to component A, which addresses development, mitigation and adaptation objectives. The proportional approach de- termines that 20 percent of the OPEC Fund contributions to this component is adaptation finance. Therefore, all US$4 million is counted as adaptation finance.
SPOTLIGHT STATEMENT The OPEC Fund’s Contribution to Climate Resilience in Senegal “As the Minister of Agriculture, Food Sovereignty, and Livestock of Senegal, I want to highlight the critical role of the Water Utilization Project for Value Chain Development (PROVALE CV) in addressing climate change impacts. With funding support from the African Development Bank, the OPEC Fund for International Development, and the Africa Growing Together Fund, PROVALE CV is vital in strength- ening the resilience of our communities. The OPEC Fund’s contribution of 11.7 billion CFA francs is en- abling the construction of 40 water retention and anti-salt structures and the development of nearly 7,000 hectares of agricultural land. This project also promotes natural resource pro- tection, innovative agricultural practices, and the dissemination of climate information to our pro- ducers. Additionally, it supports the establishment of solar-powered farms and agricultural processing units. PROVALE CV is a cornerstone of Senegal’s food sovereignty strategy. On behalf of the Govern- ment of Senegal, I express our deep appreciation to the OPEC Fund for standing with us in the fight against the adverse effects of climate change.”
The costs of these two activities have been estimated at US$4 million, all of which is counted as mitigation finance.
PROVALE-CV clearly identifies the adverse impacts of climate change on the agricultural sector. In Senegal, the ag- riculture sector is especially dependent on particular rainfall conditions. The water resources are among the most sensi- tive to climate change, despite the country’s relatively high water resource potential. The project is clearly focused on enhancing resilience to climate change, as highlighted in its technical justification, which aims to incorporate innovative strategies like de- veloping climate-smart agricultural value chains, promot- ing rural entrepreneurship and generating knowledge. The project also identifies risks and corresponding mitigation strategies, noting the risk of climate hazards that directly impact agricultural and livestock production and proposing solutions such as improving water management, distribut- ing improved seeds and implementing resilient approaches and technologies.
MABOUBA DIAGNE Minister of Agriculture, Food Sovereignty, and Livestock of Senegal
Adaptation finance has been estimated at US$4 million using a proportional approach. Given the clear statement of the climate vulnerability context, the intent to address these
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