As part of the Youth Initiative in combating climate change by JFDD member Christin CALIXTE
AFD Group, in partnership with the Green Climate Fund, launched the largest program in its history to increase climate finance for local financial institutions in 17 countries
A few weeks before COP 24 and one month after One Planet Summit in New York, the French Development Agency (AFD) Group, in partnership with the Fund, is launching a major program titled York Transformation of financial systems for climate COP . Green for climate. With more than US $ 750 million, the AFD Group reaffirms its desire to implement the Paris Agreement by locally accelerating the redirection of low-emission development and investment flows resistant to climate change.
Very ambitious climate partnership approach
In line with the goals of President Emmanuel Macron and the government to reorganize climate and local financial flows, the AFD Group is launching a program in partnership with the Green Climate Fund (FVC). an unprecedented scale. This program aims to support the transformation of local financial systems to combat climate change, and by providing GCF and AFD's privileged resources to countries, and benefiting from AFD Group's long experience in climate finance. Southern countries.
GCF approved a US $ 280 million contribution to the program, with a total value of over US $ 750 million. This is one of the biggest financial contributions of the GFM since its launch in 2015.
Convert local climate finance applications
The fight against climate change requires the mobilization of local actors. It is very important to encourage local financial institutions to develop financing practices in the fight against climate change. A total of 17 developing and developing countries will benefit from this development in which Africa is very intensive.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 according to the needs of financial institutions and their beneficiaries. This financial and technical support will target local public and private banks and microfinance institutions to enable companies, agricultural co-operatives or households to finance projects that provide strong climate benefits. The program plays an important role in financing climate change adaptation projects because 40% of the funding will be allocated to them.
Two-way attack angle: climate and sustainable development
The implementation of the Paris Agreement and the Sustainable Development Goals (SDGs) are at the center of the AFD Group's approach. This is to contribute to the redirection of the financial flow of at least one third of low carbon and flexible investments, as demanded by the President of the Republic at a Planet Summit.
This program will have an impact both in combating climate change and in combating poverty and inequality. Common financial institutions will invest in various sectors such as renewable energies, energy efficiency, sustainable management of natural resources or climate-friendly agriculture to ensure a sustainable and in-depth transformation of local actors' practices. With low carbon and flexible development.
Local financial actors are required to find a solution to the climate. The Paris Agreement envisages the redirection of low carbon and flexible development investments. AFD, which has set itself the goal of becoming the "100% Paris Agreement", has imagined an ambitious and innovative initiative on its own scale and goal: to support the transformation of more than 750 million US dollars in 17 southern countries, particularly in Africa, to the local financial systems. Reducing climate change and adaptation projects on the ground to ensure that countries are in a position to fulfill their commitments in COP21. By spending 280 million dollars on this program, the Green Climate Fund is sending a strong signal and establishing a strong partnership with AFD Group. It confirms its essential role for the implementation of the Paris Agreement (AFM Director-General Rémy Rioux).