de Développement Reconciling climate and development

Transcription

1 Agence Française de Développement Reconciling climate and development PRESS KIT

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3 AFD: A major actor in climate finance Agence Française de Développement is the central public operator for France s cooperation system. It finances and supports the development of countries in the South and the French overseas territories. Its aim is to promote development trajectories that are sustainable from an economic, social and environmental perspective. Its mandate combines the fight against poverty and the fight against climate change. With a commitment of over EUR 2.8bn of climate finance in 2014 alone, AFD is one of the main international public funders of the fight against climate change.

4 Since 2005, EUR 18bn for the climate AFD Group finances a number of development projects that have cobenefits for the fight against climate change projects 89 projects In 2014, AFD Group committed over EUR 2.8bn* to finance 89 climate projects (renewable energies, energy efficiency, clean transport, forest protection, agroecology, water resources and flood risk management). 145 M 413 M 2,366 M Programs to support governments and local authorities that aim to integrate climate change into their development strategies. Development projects that contribute to reducing the vulnerability of goods, persons and ecosystems to the impacts of climate change. Development projects that lead to a higher reduction in greenhouse gas emissions than the emissions they generate. Ambitious financial commitment Between 2012 and 2016, AFD Group s climate activity in developing countries will account for: 30% of PROPARCO s financing (private sector arm) 50% of AFD s financing 4 As certain projects contribute to both mitigation and adaptation, the annual total of * climate finance is not equal to the sum of the three categories of climate projects.

5 In 2014, climate projects accounted for: 85% of financing in Latin America 53% of financing in the Mediterranean 30% of financing in Africa 71% of financing in Asia AFD scope (excl. PROPARCO). AFD, committed to the climate, meets the expectations of the French 73% of French people are in favor of France s support to emerging countries to fight against climate change 85% of French people 7/10 French people think that climate change poses a threat to our way of life approve of France s development assistance policy taking the fight against climate change into account in funded projects Source: The French and Development Assistance, Ifop poll for AFD, September

6 Reconciling climate and development AFD It is possible to take action both for development and against climate change. On the one hand, the acceleration of climate change jeopardizes progress in development all over the world, especially in the poorest countries. On the other hand, development threatens to exacerbate climate change because it comes with an increase in the consumption of natural resources and fossil fuels. This reality means that development institutions are faced with an unprecedented challenge: it is now necessary to reconcile development needs with the climate constraint and assist countries in their ecological transition. The world faces common challenges. The solutions need to be shared. The adoption of development trajectories with low fossil fuel consumption, by both developed and developing countries, will contribute to a more sustainable future and to the global fight against climate change. At the same time, it is vital to support the poorest and most fragile countries to allow them to adapt their economies to the already present effects of this climate change, and seize the opportunities offered by the ecological and energy transition. AFD s climate strategy Over the past ten years, AFD has overhauled its strategy and action in order to meet the challenges of climate change. It is one of the leaders in mainstreaming climate-development aspects and takes these issues forward in a concrete manner. AFD s climate-development strategy is one of the most ambitious among development banks. It is based on three pillars: A sustainable financial commitment to the climate accounting for 50% of AFD s allocations to developing countries and 30% of the allocations of its subsidiary PROPARCO (private sector). A systematic measurement of the carbon footprints of funded projects using a robust and transparent methodology. A selective policy for projects with regard to their impact on the climate, taking into account the level of development of the countries in question. 6

7 Billion euros This is the amount of AFD s climate commitments since 2005 in the sectors of renewable energies, energy efficiency, clean transport, forest protection, agroecology, water resources and flood risk management.

8 AFD s climate finance tools Xavier Hoang, AFD AFD finances very diverse actions and demonstrates that there are positive and realistic solutions to the fight against climate change. It has a wide range of financial tools (investment loans, budget support, guarantees, equity or grant investments and technical assistance), and also mobilizes resources from European and international mandates. It places strong emphasis on cofinancing with other national and international donors. Innovative financial instruments and modes of action Private sector involvement in the fight against climate change: guarantees, risk sharing, bank credit lines to help companies and SMEs in the South engage in energy upgrading. Financing of climate plans: Budget and technical support for countries that integrate climate change into their development strategies. Support for cities in their transition policies. Assistance in rechanneling financing from banks and markets. Support for rural and agricultural communities in managing and preserving water resources, forest and soil resources Support for the increasingly important role of new financing actors by establishing partnerships with development banks in emerging and developing countries. 8

9 IDFC Alongside the intergovernmental negotiation, AFD, with its partners, is committed to mobilizing networks of funders and supporting coalitions of actors. The aim is to bring about common commitments and actions for the climate and development. As a founding member of the International Development Finance Club (IDFC), a network of 23 national, regional and international development banks from all over the world, AFD creates synergies for action with these institutions which help to create innovative financial solutions for the climate. It thereby contributes to the need to extend the mobilization of funders. In 2014, IDFC members provided USD 85bn of financing for activities that contribute to the fight against climate change and its impacts. In preparation for the Paris 2015 Climate Change Conference, IDFC has launched work on harmonization between financial actors on tools, methods and practices. The aim is to take better account of climate issues in development financing. In view of the challenges and financial amounts that need to be implemented in a rapid and massive manner, it is not only the traditional international actors of development assistance, but also all private financing actors (banks, investors, pension funds, insurers ) that it seeks to mobilize. AFD seeks knock-on effects and to rechannel flows from investors and other funders towards low-carbon models. Green Fund AFD was accredited as a financial intermediary for the implementation of financing from the Green Climate Fund (GCF) during the 10 th Green Fund Board Meeting on 10 July 2015 in Songdo, South Korea. Along with 12 other institutions, including the World Bank and European Bank for Reconstruction and Development, AFD thereby joined the first seven institutions accredited in March The Green Fund is a new international tool to finance the fight against climate change and was devised at the Copenhagen Conference in 2009 in order to assist developing countries in their transition towards trajectories that are compatible with the target of limiting global warming to 2 C. Its aim is to mobilize USD 100bn for developing countries every year until Climate bond AFD s first climate bond is an innovative and incentive financial tool for development projects related to the fight against climate change. It was issued on 17 September 2014 and was a great success with international socially responsible investors, which subscribed 70%. In one day, AFD raised EUR 1bn on the financial markets. It is the first socially responsible bond issue made by a French public agency and has specific and robust standards which go beyond the usual international standards for green bonds. It will finance projects to fight against climate change that have a direct impact on reducing greenhouse gases. Through this bond issue, AFD has positioned itself as a key actor in the development of financial instruments that promote an effective and sustainable transition towards a low-carbon economy. Pierre Forestier, Head of the Climate Change Division 9

10 How does AFD finance the fight against climate change? France committed to the climate During the meeting of Ministers of Finance and heads of multilateral development banks held in Lima on 9 October 2015, France, through the French President, announced that French climate finance would increase from EUR 2,865bn a year today to EUR 5bn by To achieve this objective, Agence Française de Développement s annual loan allocation capacity will increase by EUR 4bn by The increase in aid will not only be in the form of loans, but also through an increase in grants. Their level will rise in the coming years to EUR 370m more by 2020 than today. A lot of the work will already be achieved this year, as the Government has decided to submit two amendments to the draft finance law for 2016 in order to provide an additional EUR 150m of budget resources for development, including EUR 100m for the climate, mainly for adaptation to climate change impacts by poor countries. 10

11 percent of our financing has a positive impact on the climate.

12 AFD s climate solutions AFD s wide range of financial tools allows it to support innovative projects and provide a response to the variety of situations encountered in the fight against climate change. AFD works to provide innovative and effective solutions that combine the fight against climate change and sustainable development. Adaptation and water Agriculture Biodiversity Energy Forests Vocational training and green jobs Credit lines Ecological transition Urban sector Health Private sector SUPPORTING RENEWABLE ENERGY DEVELOPMENT Power generation is a major economic issue for all countries. The development of renewable energies can provide an opportunity for development and energy independence for poor countries, particularly in Africa. The bulk of AFD s climate finance focuses on building clean technologies (concentrating solar thermal power, wind, hydro, geothermal energy) in countries that aim to develop them and, in the short or medium term, achieve cost parity with conventional power generation sectors. It also concerns the implementation of systems to manage and reduce energy consumption. Developing geothermal energy and promoting low-carbon growth Kenya is experiencing difficulties in meeting its electricity demand. The country is entirely dependent on imports for fossil fuels, yet has renewable resources that are largely sufficient to cover its needs, particularly in the geothermal sector. AFD contributes to the installation of power generation units and the drilling of steam wells, along with other infrastructure required for generation, in the extensive Olkaria geothermal area. This project will provide competitive, secure and low-carbon energy. Financial tool: Sovereign loan Amount committed: EUR 150m Project manager: Arthur Honoré, honorea@afd.fr 12

13 Building photovoltaic power plants and scaling up access to electricity Peru continues to be highly dependent on fossil fuels. It is experiencing strong growth in its electricity demand and is seeking to diversify its energy mix. Solar power offers significant competitive and sustainable potential thanks to a high level of sunshine and an appropriate regulatory framework. PROPARCO is financing the construction and operation of two photovoltaic power plants in the Arequipa region. T-Solar is the first large-scale photovoltaic solar power program in Latin America and is an exemplary project from an environmental and social perspective. Financial tool: loan Amount committed: USD 7.15m Project manager: Augustin Delisle, delislea@ proparco.fr Building wind farms and promoting economic growth Ethiopia has some of the world s greatest potential for renewable energies. The country s government is developing its power generation in a clean and sustainable manner. However, the very strong increase in demand (annual average of +12%) and the needs of neighboring countries (Djibouti, Kenya and Sudan) require new generation methods and a rapid development of capacity. AFD has financed the construction of the Ashegoda wind power plant, which has strengthened electricity distribution and made it more reliable, and has also contributed to the development of economic activities. Financial tool: Non-sovereign loan Amount committed: EUR 45m Project manager: Antoine Lecanu, lecanua@afd.fr 13

14 Financing the sustainable development approaches of cities Cities are increasingly sensitive to the negative environmental impacts related to their rapid and often uncontrolled urbanization. They are places where there is a high concentration of economic activities and are high energy consumers and emitters of greenhouse gases. AFD, through its customized financial tools and long-term dialogue with local authorities, supports the implementation of public policies which bring about urban development that is positive for the environment (efficient waste and sanitation management, urban densification and regeneration). Public policies are combined with efficient public transport projects and a policy that supports social housing, and promote both social inclusion and lowcarbon urban development. Sustainably developing urban areas and improving living conditions for vulnerable populations The territory of Santo Domingo in the Dominican Republic is lagging behind in terms of equipment, infrastructure and housing. The informal settlement of La Barquita, which is located on a bend of the Ozama River, is particularly sensitive to climate hazards. AFD is supporting the East Santo Domingo development and mobility program: metro extension, creation of waterway transport to serve poor neighborhoods, rehousing of residents in the flood-prone part in a nearby area equipped with basic services and community facilities. Financial tool: Sovereign loan Amount committed: EUR 150m Project manager: Gaëlle Henry, henryg@afd.fr 14

15 Building a metro to relieve congestion in the city and reducing CO 2 emissions Bangalore, India s third largest city, has seen its population double in 20 years. The vehicle fleet is rapidly increasing and pollution and traffic jams have become a major problem. The construction of a metro, accessible to as many people as possible, has relieved congestion in the city and promoted development with lower greenhouse gas emissions. AFD is financing the finalization of existing lines and is participating in the extension project (construction of new lines). Financial tool: Sovereign loan Amount committed: EUR 110m Project manager: Priscille de Coninck, deconinckp@afd.fr Developing the urban transport network and revitalizing the city Lagos, the largest city in Sub-Saharan Africa (over 15 million inhabitants) has an annual growth rate of 6%. But traffic congestion has an impact on the quality of life of residents and holds back the dynamism of Nigeria s economic capital. Bus Rapid Transit (BRT) systems promote lowcarbon urban public transport modes with the aim of improving mobility and the quality of life for the residents of Lagos. AFD is supporting the extension of the bus network, which offers all the advantages of the metro at a lower cost. We are convinced that social priorities and climate challenges are compatible and need to be devised together as part of an integrated approach to urban development Anne Odic, Head of the Local Authorities and Urban Development Division Financial tool: Sovereign loan Amount committed: EUR 70m Project manager: Thomas de Véricourt, devericourtt@afd.fr 15

16 ASSISTING COUNTRIES IN THEIR TRANSITION Energy transition is the main challenge for the fight against climate change. AFD s aim is to help countries establish new low-carbon growth trajectories. Along with other bilateral and multilateral donors, it has initiated an innovative approach to provide financial support to countries that aim to integrate climate change into their development strategies. This financial support is combined with technical assistance and a high-level dialogue with partners, which aims to promote the development of public policies. Supporting the definition of national climate plans and enhancing development strategies Helping the most vulnerable countries to adapt to the impacts of climate change requires making them attractive to international investors and promoting effective public policies. AFD is assisting Benin, Gabon, Kenya and Uganda in an institutional and technical process to define and implement low-carbon and resilient development strategies: limitation of CO 2 emissions, economic valuation of sequestration potential, institutional capacity building Financial tool: Grant Amount committed: EUR 1.5m Project manager: Nicolas Rossin, rossinn@afd.fr Financing climate plans and developing sustainable public policies Indonesia s biodiversity is one of the richest in the world and is today seriously threatened. Deforestation accounts for 85% of the country s CO 2 emissions. Its insular character and relative poverty of its population make Indonesia particularly vulnerable to climate disruptions. AFD has financed the Climate Change Program Loan (CCPL), which has been devised by the Indonesian Government, in consultation with donors, to develop public policies for mitigation (forests, energy and industry) and climate change adaptation (water and agriculture). Financial tool: Sovereign loan Amount committed: EUR 580m Project manager: Olivier Gilard, gilardo@afd.fr Supporting government action plans and promoting the transition towards a low-carbon economy Minas Gerais is severely affected by droughts and flooding. It is the first State in Brazil to have conducted a diagnostic of vulnerability to climate change. In 2012, it set out to develop a Territorial Climate Energy Plan (PCET) and, at the same time, engaged in a proactive policy to develop the territory focusing on reducing social inequalities and access to essential public services for the poorest. AFD is supporting the various components of the action program of the State of Minas Gerais. Financial tool: Sovereign loan Amount committed: EUR 300m Project manager: Clémentine Dardy, dardyc@afd.fr 16

17 REDUCING THE VULNERABILITY OF COUNTRIES TO CLIMATE CHANGE IMPACTS Climate change impacts are already being felt by the most vulnerable economies and populations in Africa, Asia, Latin America and the small island developing States. AFD is continuing its mandate for solidarity towards the poorest and most vulnerable countries and ensures that the projects it finances are resilient to climate change. AFD works to ensure that the development of these countries is sustainable and to prepare them to face extreme climate events by supporting the changes required in economic, social and territorial planning policies. Its adaptation actions focus on water, agriculture and the management of climate risks in urban and rural areas. More effectively managing drinking water and improving distribution in small and medium-sized cities Morocco is subject to acute water stress, which is exacerbated by climate change. Water demand is constantly increasing: intensified irrigation, population growth, urban, industrial and tourism development. AFD is supporting ONEE (National Office for Electricity and Drinking Water) for its investment program to rehabilitate drinking water distribution and production networks, and also to improve the operation of facilities and client management. Financial tool: Sovereign loan Amount committed: EUR 30m Project manager: Lionel Goujon, Climate challenges lead to the need to completely overhaul development choices, but also project design. Laurence Breton-Moyet, Director of Operations 17

18 Preserving island ecosystems and reducing their vulnerability to climate change The South Pacific Islands are particularly dependent on their terrestrial and marine ecosystems. Climate disruptions, combined with human activities, cause a sharp deterioration in natural environments, with significant social and economic consequences. AFD is supporting the RESCUE project for integrated coastal area management, with the aim of improving the functionality of ecosystems, demonstrating their economic value and establishing innovative financing mechanisms to ensure the sustainability of conservation actions. Financial tool: Grant Amount committed: EUR 2m (AFD) + EUR 2m (FFEM) Project manager: Guillaume Chiron, chirong@afd.fr Strengthening the regional intervention platform and improving resilience to natural disasters The Indian Ocean islands (Comoros, Madagascar, Mauritius, Mayotte, Reunion, Seychelles) are exposed to a number of climate hazards, which can cause major disasters. Each country has an emergency response system, but there are substantial disparities. In order to enhance the effectiveness of natural disaster prevention and responses, AFD has financed, via the French Red Cross, the development of the project to pool humanitarian equipment in the region. It is being implemented by the Indian Ocean Regional Intervention Platform (PIROI). Financial tool: Grant Amount committed: EUR 750,000 Project manager: Julie Couriaut, couriautj@afd.fr Our aim is to put social issues back at the center of reflection on the energy transition. If our operations are to be effective, they need to meet the demand of our counterparts and be based on partnerships. Céline Gratadour, Project manager, Education, Training and Employment Division 18

19 SUPPORTING PRIVATE CLIMATE INVESTMENTS It is essential to rechannel private financial flows towards the climate in order to address the scale of the challenge at global level. Donors need to have a significant catalytic role. AFD is at the center of a network of partners and supports the increasingly important role of these new actors. It promotes public policies for transition that are attractive to private investors, develops instruments to mobilize private financing (risk sharing, grants, technical assistance, support for local banking systems ), and provides direct assistance to the local private sector in the least developed countries. Promoting green financing and diversifying the country s energy mix South Africa has set ambitious targets for energy efficiency and the development of green energies. The Integrated Resource Plan aims to double the installed capacity by 2030 in order to meet demand and rebalance the country s energy mix. AFD has made a credit line available to three South African financial institutions to finance renewable energy and energy efficiency projects. It is also providing technical assistance to build their capacities in terms of gaining an understanding of sustainable energy projects. Financial tool: loan and grant Amount committed: EUR 120m (loan) + EUR 0.7m (grant) Project manager: Céline Bernadat, bernadatc@afd.fr Facilitating business investments and promoting sustainable economic development Turkey, which is highly dependent on imports for its energy, is experiencing a growth in demand among the highest in the world. AFD has allocated a credit line to Türkiye Sınai Kalkınma Ban-kası (TSKB), Turkey s leading private investment and development bank, to facilitate business investments in the field of energy efficiency. Technical assistance also helps to develop the bank s in-house skills and sensitize TSKB s clients to the issue of energy efficiency. Financial tool: Credit line Amount committed: EUR 50m Project manager: Céline Bernadat, bernadatc@afd.fr Strengthening the match between training and green jobs and increasing the number of highperforming staff Forests play an essential role in the economic development of Central Africa and are a major provider of employment in the sub-region. With the integration of social and environmental issues, the strengthening of legislation and the use of new technologies, there has been a marked development in the technical expertise of activities. AFD is supporting the PARAFE project to strengthen the match between training and employment and improve the professional qualification of actors in the forest and environment sectors. Financial tool: Grant Amount committed: EUR 1.5m Project manager: Calogero Sciandra, sciandrac@afd.fr 19

20 SUPPORTING THE ECONOMIC VALUATION OF ENVIRONMENTAL SERVICES RENDERED BY FORESTS AND AGRICULTURE Deforestation and agricultural practices account for almost 23% of GHG emissions. As the cost of their externality is recognized by the international community, the benefit of soil sequestration and non-destocking by deforestation can be economically valued (principle of REDD+). This valuation is an economic opportunity for the countries in question, especially for communities who effectively manage their forestry capital (biodiversity) and have sustainable agricultural and rural practices (family farming). AFD is actively involved in these issues and is building programs for forest development, agroecology, local development and the management of rural areas. Monitoring forests by satellite and reducing greenhouse gas emissions Central African forests house the continent s most abundant biodiversity and are one of the planet s main carbon sinks. Their preservation and sustainable exploitation constitute a major challenge for the region s economic and social development. AFD, in partnership with Airbus Defence and Space, is financing a program to make satellite data available to monitor forest cover in order to combat deforestation and support Central African Countries in their preparation for REDD+. Financial tool: Grant Amount committed: EUR 8.5m (AFD) + EUR 3.35m (FFEM) Project manager: Frédérique Willard, willardf@afd.fr 20

21 Protecting watersheds, promoting agroecology and improving farmers incomes The basin of Lake Alaotra, a major rice-growing area in Madagascar, is experiencing strong migratory pressure. It is threatened by erosion and agricultural and pastoral practices that are inappropriate on fragile soils. AFD is continuing its efforts to enhance and develop the watersheds and irrigated areas of the lake, based on an innovative approach which reconciles productive development and environmental protection (securing incomes for farmers, preservation of natural resources, promotion of agroecology, support for producers organizations ). Financial tool: Grant Amount committed: EUR 11m Project manager: Anne Legile, legilea@afd.fr Planting trees to reduce CO 2 emissions and supporting sustainable forest management Yunnan Province, a rural region with a mountainous and forest terrain, is an essential carbon sink for China. The Chinese Government s rural carbon project supports programs that have a strong positive impact on greenhouse gas emissions. In the forest sector, AFD s financing contributes to planting trees and restoring degraded forests. In terms of energy, biodigesters, which are given to poor families, improve health conditions and reduce pollution inside homes. Financial tool: Sovereign loan (AFD) + grant (FFEM) Amount committed: EUR 35m (AFD) + EUR 1m (FFEM) Project manager: Emmanuelle Poirier-Magona, poirier-magonae@afd.fr Local development requires a holistic approach. We define territorial development strategies in rural areas which, at the same time, include aspects concerning productivity, adaptation, mitigation and biodiversity conservation. Jean-Luc François, Head of the Agriculture, Rural Development and Biodiversity Division 21

22 BORN SOMEWHERE Enjoy an experience of sustainable development Tell me and I will forget. Show me and I may remember. Involve me and I will understand. Confucius At COP21, AFD will be providing the opportunity to enjoy a unique, moving and interactive experience in the shoes of an inhabitant from the other side of the world. BORN SOMEWHERE is an exhibition-show designed on the basis of 21 stories of people s lives which will take visitors on a trip into the different ecosystems. It is a real sensory trip based on climate and development challenges which aims to allow us to open ourselves up to the world. By stepping into the shoes of one of the 21 characters portrayed, visitors are invited to explore and test solutions that provide a response to climate and environmental challenges in Cambodia, Niger, Morocco, Colombia, Nigeria and French Polynesia, in cities or rural areas Because today, our future is being built both here and there. Wherever we are born, faced with climate and development challenges, we are all part of the solution. PARIS LA VILLETTE: FROM 24 NOVEMBER TO 30 DECEMBER 2015 LYON LA SUCRIÈRE: FROM 4 FEBRUARY TO 6 MARCH 2016 Booking essential. For further information: Contact: presse@nesquelquepart.fr 22

23 Our experts Climate Change, Climate Finance Cities Energy, Transport Agriculture, Forests, Biodiversity Pierre Forestier Anne Odic odica@afd.fr Rima Le Coguic lecoguicr@afd.fr Jean-Luc François francoisjl@afd.fr Water Vocational Training and Green Jobs Health Private Sector Cassilde Brénière brenierec@afd.fr Céline Gratadour gratadourc@afd.fr Pierre Salignon salignonp@afd.fr Jérôme Bertrand-Hardy bertrand@proparco.fr International Development Finance Club (IDFC) Chief Economist Director of Operations Development Finance Photos: Alain Goulard Alexis Bonnel bonnela@afd.fr Find out more: climat.afd.fr Gaël Giraud giraudg@afd.fr Playlist AFD Climate: youtube.com Laurence Breton-Moyet bretonl@afd.fr Philippe Orliange orliangep@afd.fr

24 agence de communication Création: advitam.org Agence Française de Développement Press contact Magali Mévellec Tél.: Port.: mevellecm@afd.fr 5 rue Roland-Barthes Paris France afd.fr facebook.com/afdofficiel twitter.com/afd_france youtube.com/user/groupeafd