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Case study: National Environment Fund Benin (FNE)

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Dr. Christine Grüning, Carola Menzel and Laura Susanne Shuford
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The National Environment Fund of Benin (Fonds National pour l'Environnement – FNE) was originally designed to mobilise and blend national and international funding sources for national environment projects. However, considering the importance of combining climate change mitigation and adaptation efforts with Benin’s development efforts, the Council of Ministers on May 29, 2013 decided to extend the mandate of the FNE and turn it into the FNEC (National Fund for the Environment and Climate) to mobilise and blend national and international climate finance sources and to diversify the existing environment project portfolio by adding climate change projects. This case study provides an overview of the FNE as an institution including the funding sources, governance, and current operations as well as of its macroeconomic and political framework. With reference to the FNE’s transformation, it also outlines some essential change management principles that address strategic and operational management and that require substantial time and resources. The case study has been prepared as part of the UNEP National Climate Finance Institutions Support Programme (NCFISP) and is part of a series of four case studies that provide examples of the set up and management of different types of NCFIs.

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