By Christine CALIXTE, a member of JFDD, as part of the youth initiative to fight against climate change
The AFD Group in partnership with the Green Climate Foundation launches the largest program in its history to increase climate financing for local financial institutions in 17 countries
A few weeks before the 24th Independence Day and a month after the summit of the planet in New York, the French Development Group (AFD) is launching a major program called "Transforming the Financial Systems into Climate", in cooperation with the Foundation. Green to the climate. With this program of more than $ 750 million, AFD Group confirms its ambition to implement the Paris Agreement by accelerating local reorientation of investment movements towards low emissions and climate-resilient emissions.
A very ambitious approach of climate partnership
In accordance with the goals set by President Emmanuel Macaron, and the government in terms of climate and re-analysis of domestic financial flows, the AFD Group in partnership with the Green Climate Foundation (FVC) launches a program of unprecedented scale. This program is designed to support the transformation of local financial systems to combat climate change by providing GEF and AFD concessionary resources to countries and utilizing the long experience of the AFD Group in climate finance. Southern states.
The GCF approved a donation of $ 280 million to this program for a total of more than $ 750 million. This is one of GCF's biggest financial contributions since its inception in 2015.
Change the local climate climate climate
The fight against climate change requires the recruitment of local players. It is crucial to encourage local financial institutions to develop their financing methods in the fight against climate change. A total of 17 developing and emerging countries will benefit from this support, with a very high concentration on AfricaBenin, Burkina Faso, Cameroon, Ivory Coast, 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 their financial institutions and beneficiaries. This financial and technical support will therefore guide local public and private banks and microfinance institutions to enable them to finance projects that will yield strong climate benefits from companies, agricultural cooperatives or households. The program provides an important place to finance adaptation projects for climate change, as 40% of the funding will be spent on them.
Double angle of attack: climate and sustainable development
The implementation of the Paris Agreement and the Sustainable Development Goals (SDG) is at the heart of AFD's approach. This, as required by the President of the Republic at a single summit of Planet, should contribute to a change of at least a third of the financial flows to low-carbon investments and flexibility.
This program will have an impact both in the fight against climate change and in the fight against poverty and inequality. Partner financial institutions will invest in diverse sectors such as renewable energies, energy efficiency, sustainable natural resource management, or smart climate agriculture to ensure a sustainable and profound change in the practices of local players with low carbon and flexible development.
Local financial players are essential to finding a climate solution. The Paris Agreement provides a reorientation of low carbon investments and flexibility. AFD, which has set itself the goal of being "Paris 100% Agreement", envisioned ambitious and innovative initiative, its scale and its purpose: to dedicate more than 750 million US dollars to support transformation of local financial systems in 17 southern countries, In order for changes in climate change and adaptation projects to find funding on the ground, countries must be in a position to implement commitments made in COP21 By making $ 280 million for this program, the Green Climate Fund sends a strong signal and builds a strong partnership with the AFD Group, In the implementation of the Paris Agreement (Rami Rio, CEO of AFD)