Climate

The current models of production and consumption are exhausting biodiversity and natural resources. The greenhouse gases we emit are accelerating climate change… Since 2005, the climate has been a priority for AFD. That’s because climate and development are two interrelated emergencies. And also because, all over the world, energy and ecology transitions provide opportunities. Now is the time for action. Our objective? That all our projects be 100% compatible with the Paris Agreement.
  • logo linkedin
  • logo email
solar plant, New Era, India, solar pannels, renewables, Chandra
AFD's climate ambition: to be a development bank 100% compatible with the paris agreement
Solar plant, Noor II, Ouarzazate, Morocco, Zizola

Activity that's "100% Paris Agreement"

wind farms, nature, New-Caledonia, renewables, Chélard

Activity that's "100% Paris Agreement"

In 2017, the entire AFD Group undertook to make its activity be 100% compatible with the Paris Agreement. This unprecedented commitment bears witness to our proactive stance in climate matters.

Being “100% Paris Agreement” implies analyzing each of the Group’s interventions to see that they are consistent with long-term low-carbon and resilient development in the country where they are implemented. This analysis is rounded out by an assessment of the level to which our investments are exposed to climate risks, be they physical or related to low-carbon transition policies. These analyses are used in delivering the Sustainable Development Opinion given to projects at the examination stage. 

In order to go even further in co-building in climate matters with its partner countries, AFD is setting up the “2050 Facility” dedicated to developing long-term low-carbon and resilient development strategies that the COP21 has asked all countries to produce by 2020.

This commitment comes in addition to another one that already exists within the Group: seeing to it that 50% of annual financing goes to projects that have a direct and beneficial impact on the climate.

Increasing the volume of climate financing

Environments, plants, growing crop, nature, New-Caledonia

Increasing the volume of climate financing

In 2022, AFD group committed €6.9 billion to climate financing, representing an increase of 15% compared to 2021 and the highest amount since 2017. Among the projects supported, one in three has co-benefits for biodiversity.

In order to reduce the exposure and vulnerability of societies to the hazards of climate change, the Group has ramped up its efforts to facilitate climate adaptation, allocating €2.2 billion in 2022, twice as much as in 2017.

Climate adaptation is being incorporated into the projects supported by AFD in an increasingly effective way, particularly in the fields of water and sanitation and rural development. In addition, adaptation is being promoted via the second phase of the AdaptAction program, which supports adaptation strategies in vulnerable countries, and through a partnership with the Green Climate Fund, which includes several climate change adaptation programs.

Redirecting financial and investment flows

Assessment climate loan, Indonesia, green finance

Redirecting financial and investment flows

Above and beyond a role of solidarity towards the countries that are the most vulnerable and the least able to seize the opportunities of the green economy, development banks now have a major role to play as a “catalyst” and above all to “reorient” global public and private investment towards investments adapted to countries’ low-carbon and resilient transitions.

AFD is currently seeking to maximize its financing’s snowball effect on the redirection of private investments, largely via credit lines to banks or through direct financing by Proparco, the Group’s private-sector subsidiary.

Co-developing solutions and having an impact on standards

NOOR II, Ouarzazate, Morocco, solar plant, Zizola

Co-developing solutions and having an impact on standards

AFD Group is working with its partners to influence and collaborate on the convergence of norms, practices and standards to develop an aligned framework for sustainable finance, particularly in the areas of climate change and biodiversity.

Since 2021, for example, AFD has published the Task Force on Climate-Related Financial Disclosure (TCFD) report, which aims to demonstrate how the Group complies with the highest international standards for incorporating climate-related risks into its governance, as well as the operations it chooses to finance. This integration of climate risks is reflected in its communication with customers and partners. AFD also participates in the international initiative led by the Task Force on Nature-related Financial Disclosure (TNFD), which has developed a common framework for financial institutions and businesses to assess, monitor and disclose financial risks related to biodiversity loss.

Furthermore, continued dialogue with the European Union on the application of the European taxonomy, along with the system of the United Nations and other partners (IFRS-ISSB, Ipsas), is essential to develop a set of standards for sustainable finance. AFD is also involved in a large number of projects which promote better integration of climate and nature into the strategies and operations of the financial institutions it supports, in particular, via the Mainstreaming Climate Action in Financial Institutions initiative.

Accredited by the Green Climate Fund since 2015, AFD supports its partners with the Green Fund accreditation process, and works on program appraisal, whether alone or together with IDFC members. This accreditation helps organizations develop the capacity to identify and appraise climate-friendly projects, while at the same time updating the frameworks, policies and procedures which relate to the accreditation process.

The role of national development banks in climate action

one planet summit

The role of national development banks in climate action

Since 2017, AFD has accommodated the General Secretariat of the International Development Finance Club (IDFC), a unique global network of 26 national, regional and international development banks, 19 of which are based in developing countries. This network is currently co-chaired by the West African Development Bank and Bancoldex.

Having agreed to new financial commitments amounting to nearly $1.2 billion in 2022, 24% of which is earmarked for climate change projects ($282 million), the IDFC is the world’s leading public funder of climate initiatives.

AFD is working with the IDFC in a range of areas, including on the implementation of the Paris Agreement, an accounting methodology for climate financing (for mitigation and adaptation), and the joint commitments made by the IDFC and a group of multilateral development banks at the One Planet Summit (held on December 12, 2017, with these commitments renewed in 2021).

6.9
billion euros committed to the climate in 2022 in developing countries and the French overseas
33.3
billion euros committed to the climate since 2017

Droughts, flooding, rising sea level, cyclones, etc.… Global warming is making itself increasingly felt on our planet. Its effects are very visible in the developing countries, which are also the most vulnerable ones. Global warming thus has serious consequences for humankind and the environment.

For AFD Group, the conclusions are clear: sustainable development and fighting poverty cannot be dissociated from fighting global warming and protecting the environment and biodiversity.

That’s why for more than 10 years we have been committed to the climate, by interconnecting our actions among three themes: mitigation of climate change (i.e. limiting greenhouse gases); adaptation to the impacts of climate change (i.e. reducing the exposure and vulnerability of people and territories to climate events); and support to States, communities and territories in the setting up of development trajectories that are low-carbon and resilient to climate change.

 
Climate at the heart of the development of African cities
 
Access the datawall

To carry this out, we have a wide range of financial tools, such as loans, budgetary aid, guarantees, investments in capital or in grants, and technical assistance). We also mobilize resources from European and international sources such as the Green Climate Fund. Finally, we enhance our climate efforts by striving for project co-financing with other French and international donors.

And, just recently, we strengthened our climate ambitions, having set a big objective within our new climate strategy adopted in November 2017: that of becoming a development bank “100% compatible with the Paris Agreement”.

With 33.3 billion euros of financing approved for the climate since 2017 and 6.9 billion euros in 2022 in developing countries and the French overseas, AFD Group is one of the main international donors providing climate financing.

Interactive map
This map is illustrative and does not list all the projects funded by AFD. Find the complete list of our projects on the opendata.afd.fr portal
Launch search
See map of all projects

Downloads

Institutional document

AFD Group Offer in North Africa

Both a protean, multicultural region, but also a space of transitions and mobility, North Africa fac

...
Oct 2024
Institutional document

Infographic - Our climate commitments en 2023

In 2023, AFD Group committed €7.5 billion of climate finance in developing countries and overseas

...
Jul 2024
Institutional document

Climate - Activity report 2023

As the first development bank to have committed to aligning its financing with the Paris Agreement,

...
Jul 2024
Research document

Assessment of Future Droughts in Vietnam Using High-Resolution Downscaled CMIP6 Projections

This study investigates drought conditions in Vietnam and its seven sub-climatic regions using the S

...
Apr 2025
Research document

Marine heatwaves and coral bleaching: what are the opportunities and challenges for research and public policy?

Marine heatwaves, intensified by climate change, are placing increasing pressure on tropical coral r

...
Mar 2025
Research document

Clean Cooking: Insights from two new AFD and FID Experiments

At the crossroads of environmental, health and social issues, universal access to clean and efficien

...
Feb 2025
Research document

How do global decarbonization trends create external risks for emerging and developing economies?


The low-carbon transition, despite its imperative nature, is likely to present both economic and s...

Dec 2024
Evaluation document

To what extent are issues related to the Mediterranean marine and coastal ecosystem taken into account in operations?

With the publication of its first strategic framework dedicated to the Ocean in 2020 the Agence fran

...
Jul 2024
Evaluation document

WARM Facility Mid-Term Evaluation (CVN1228-CVN1236)

The WARM Facility aims at enhancing the resilience and adaptation level of populations and economic

...
Mar 2024
Evaluation document

Evaluation of projects with climate adaptation co-benefits in sub-Saharan Africa and Madagascar (2007-2018)

Since 2015, AFD’s financing for projects with "adaptation" co-benefits - helping to respond to the r

...
Dec 2023
Evaluation document

Comprehensive Overview of the Agricultural Sector in Jordan

Agriculture in Jordan is a particularly constrained sector given the dry climate and the limited end

...
Sep 2023
Video

Evaluating projects: a key issue for AFD

When a project ends, AFD's operational teams systematically assess the project's progress—resources,

...
Mar 2025
Video

Where does AFD's money come from, and where does it go ?

For more than 80 years, the Agence Française de Développement has contributed to implementing Fran

...
Dec 2024
Video

Housing: A Key Sector for the SDGs

Housing is an essential human right. Yet 1.6 billion people don’t have access to decent housing. B

...
Dec 2024
Video

How to build a pro-nature economy?

What are the effects of the degradation of nature on the financial system and the economy? How can t

...
Dec 2024
View all publications
one planet summit