Strategy

China

Strategy

Strategic areas of operation

AFD operates in China within the framework defined by the Committee for International Cooperation and Development (CICID) concerning developing countries, for which France considers that global public goods such as biodiversity, pandemics and especially the fight against climate change, form the backbone of international relations. The joint declaration on climate change released by presidents Sarkozy and Hu Jintao during the state visit to Beijing in November 2007 encourages AFD to finance distinctive and pragmatic projects on climate change in China that pertinently reinforce this mandate.

Since 2004, AFD financing has been focussed on projects that lead to a reduction in CO2 emissions, in the following sectors:

Power generation
Sustainable urban development
Low-carbon rural development
Energy management in industry and services

With a view to higher efficiency, AFD initially selected seven priority provinces in the south west region of China (Yunnan, Guangxi, Guizhou, Sichuan, Hubei, Hunan and the Chongqing municipality). Now projects from any geographic area are eligible as long as they fulfil the criteria. AFD can therefore now operate in other provinces where projects are of particular interest and if they can be easily be replicated in terms of energy efficiency or greenhouse gas emission reduction.

Mobilising international interests

The bilateral cooperation between France and China through AFD, forms an entry point for broader cooperation, including other operators.

As a French operator, AFD is committed to supporting projects with significant local impact and that promote French know how. In the long run, AFD could act as a relay in decentralised cooperation projects, for local authorities or councils.

Several projects, bilateral or multilateral, are being co-financed with other donors (KFW, Asian Development Bank, World Bank…) and AFD remains open to future co-financing projects.

Climate Group

The fight against climate change is of strategic importance in Sino-French relations, as demonstrated by the Joint Declaration on Climate Change adopted by presidents Sarkozy and Hu Jintao in Beijing in November 2007. Various key members of the French community are interested by this issue: French embassy, Cultural and Cooperation Department, Scientific Department, Trade Office, French Development Agency, companies, research institutes and competitive clusters, local authorities. In order to obtain the ambitious goals set out in the Declaration, it is necessary to strengthen cooperation between these different actors.

A “Climate” Working Group, comprising Embassy services and the Beijing agency of the AFD was set up with the aim of drafting an action plan over three years (2008-2010) that will be implemented after validation by the ambassador. In conjunction with this work, members of the Working Group regularly meet with other French partners such as companies, research institutes, competitive clusters and local authorities, to identify areas of work that will lead to developing projects that contribute to the reduction of GHG emissions in China and collaboration from French firms.