Saturday , June 3 2023

AFD Group in partnership with the Green Climate Fund


Christin CALIKSTE, a member of the JFDD, within the Youth Initiative to Combat Climate Change

AFD Group in partnership with the Green Climate Fund is launching the largest program in its history to increase climate financing for local financial institutions in 17 countries

Several weeks before COP 24 and One Month after the One Planet Summit in New York, the French Development Agency (AFD) is launching a major program called "Transformation of Financial Systems for Climate" in partnership with the Fund. Green for climate. With this program of over $ 750 million, the AFD Group confirms its ambition to implement the Paris Agreement by locally accelerating the reorientation of investment flows to low-emission and climate-resistant developments.

A very ambitious approach to partnership with the climate

In line with the goals set by President Emmanuel Macron and the government in terms of the climate and the reorientation of local financial flows, the AFD Group, in partnership with the Green Climate Fund (FVC), is launching an unprecedented scale program. This program aims to support the transformation of local financial systems in the fight against climate change, providing concession resources to GCF and AFD countries, and capitalizing on the long-standing experience of the AFD Group in climate financing. south of the country.

GCF has approved a contribution of US $ 280 million for this program in the total amount of over US $ 750 million. This is one of the largest financial contributions of GCF since its operationalization in 2015.

Transformation of local climate financing practices

Combating climate change requires the mobilization of local actors. It is critical to encourage local financial institutions to evolve their financial practices in the fight against climate change. A total of 17 developing and developing countries will benefit from this support, with a very high concentration in Africa (Benin, Burkina Faso, Cameroon, Côte d'Ivoire, Ecuador, Egypt, Kenya, Madagascar, Mauritius, Morocco, Namibia, Nigeria, Senegal, South Africa, Tanzania, Togo and Uganda.).

The program is part of a flexible approach by providing financial resources and technical assistance tailored to the needs of financial institutions and their users. This financial and technical support will therefore be directed at local public and private banks and microfinance institutions to enable them to fund projects that generate strong climate benefits from companies, agricultural cooperatives or households. The program provides an important place for financing climate change adaptation projects, as 40% of funding will be dedicated to them.

Double angle of attack: climate and sustainable development

The implementation of the Paris Agreement and the Sustainable Development Goals (SDGs) is at the center of the AFD Group approach. That is, as requested by the President of the Republic on the planet, to contribute to the reorientation of at least one-third of the financial flows into low-carbon and resilient investments.

This program will have an impact both on combating climate change and on combating poverty and inequality. Affiliate financial institutions will invest in different sectors such as renewable energy, energy efficiency, sustainable natural resource management or climate intelligent agriculture to ensure sustainable and fundamental transformation of local stakeholder practices, consistently with low carbon and elastic development.

Local financial actors are essential to finding a climate solution. The Paris agreement envisions the reorientation of low carbon emissions and elastic development. The AFD, which set itself the goal of being a "100% Paris Agreement", imagined an ambitious and innovative initiative to its extent and its goal: to dedicate more than $ 750 million to support the transformation of local financial systems in 17 southern countries, mainly in Africa. For climate change mitigation and adaptation projects to find funding in the field, and countries can be in a position to implement obligations given to COP21. By pledging $ 280 million for this program, the Green Climate Fund sends a strong signal and builds a strong partnership with the AFD Group. It confirms its fundamental role in the implementation of the Paris Agreement (Remi Riouk, Director General AFD)

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