Economic Growth and Climate Finance in Benin (Revue Française d'Economie et de Gestion)

Summary

• The total mitigation actions under Benin's NDC 3.0 for 2026-2035 are estimated at $9,939.269 million, alongside $4,548.857 million for adaptation, forming a total funding requirement of around $14,488.127 million.p.4
• Benin recorded an average economic growth rate exceeding 6% over the 2018-2022 period and reached a growth rate of 8.1% in 2025.p.5
• The 2025 state budget allocated 608,832.6 million FCFA in payment credits for climate investments, of which 406,120.8 million FCFA was executed by end-September 2025.p.13
• Three-year climate credit allocations are projected to rise from 747,156.0 million FCFA in 2026 to 822,451.6 million FCFA in 2027 and 873,956.5 million FCFA in 2028.p.16

Key insights

1. Global economic damages from extreme weather events averaged $200 billion annually since 2015.p.3
2. Benin's 2010 severe floods caused approximately $257 million in damage, equivalent to 2% of its GDP.p.3
3. Climate funding sources integrated into Benin's national budget consist of Multilateral Funds (35%), Bilateral Cooperation (28%), Development Banks (22%), the Private Sector (8%), and the National Budget (7%).p.11
4. Climate credits represent 44.6% of total budgetary allocations and 68.9% of capital expenditure plans for the targeted ministries in 2026.p.15
5. Benin prioritizes adaptation over mitigation in its 2026-2028 budgetary strategy, with adaptation credits rising to 807,455.5 million FCFA in 2028 while mitigation credits decline to 66,501.0 million FCFA.p.16
6. Linear forecast models project climate finance to reach $1,294 million in 2026, $2,127.5 million in 2030, and $8,123.2 million in 2060.p.17
7. Model calculations suggest a 1% increase in economic growth drives a climate finance growth of 3.16% in the short term, 2.64% in the medium term, and 9.15% in the long term.p.18