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LCFW 26-28 08 2014

AFD / Stratgie Climat-Dveloppement 2012-2016 3

. French ODA Instittion! Development "an#! AFD grop$ AFD %Agence
Francaise &e Dveloppement' ()*O)A*CO %private sector s+si&iar,'! hoses
FF-. Secretariat %French /-F'
.0i&e range o1 1inancing tools
.Sovereign loans %1rom ver, concessional to mar#et con&itions'
.2on sovereign loans %concessional or mar#et con&itions'
.)rivate sector loans
./arantees on loans in -4*5 4SD an& local crrencies %6A*I78'
./rants %pro9ects5 st&, 1n&s5 technical assistance'
. Areas o1 intervention: -conomic /ro;th! povert, re&ction! preservation o1
/lo+al )+lic goo&s %Climate5 +io&iversit,'-green inclsive gro;th
. <earl, Financing e3ivalent to -4* =.> "illion
. )resent in =0( Contries
AFD / Stratgie Climat-Dveloppement 2012-2016 2
Climate change, an environmental issue
and a major challenge for development
?o; to 1oster the transition to a less car+on an& energ, intensive
economic &evelopment@
Sustainability of production and consumption practices, cost and
dependence to fossil fuels
?o; to enhance economic vale o1 climate services provi&e& +,
natral resorces@
And how to sustainably use a country natural capital
?o; to re&ce the vlnera+ilit, o1 people an& goo&s to climate
Social cost and impact, spacial planning, water management, agriculture
and fisheries, climate proofing of infrastructures
Economic and social threat as well as strategic and competitiveness
opportnities (jobs, technology transfers, knowledge) = a &evelopment challenge
23/10/2012 )ro9ect car+on 1ootprinting at AFD /rop >
AFD Climate Change Strategy (2012 2016)
Systematic measurement of projects carbon footprint
(Carbon Footprinting Tool* developed since 2007)
* available at
Selecting projects according to their climate impacts
(considering countries development levels)
High level of financing for climate change action
(specified b! geographical area)
50% of AFDs annual foreign"aid commitments
30% of roparcos commitments (private sector subsidiar!)
23/10/2012 )ro9ect car+on 1ootprinting at AFD /rop 6
impact assessment
Systematic carbon footprint assessment
Since 2007 : robust carbon footprint tool that allo#s
measurement of emissions induced and reduced or
avoided of pro$ects (27 sectors% characteristics of
pro$ects% &F)
S!stematic e' ante measurement of the carbon footprint
of all pro$ects #ith significant impact directl! financed b!
(F)* use of this procedure to mainstream climate
considerations into pro$ect appraisal and design
Assessment of vulnerability
+uide to assess e'"ante vulnerabilit! to climate change
of pro$ect #ith geographical areas/ technical sector
entries* climate proofing standards in progress
Classification of adaptation pro$ects lin,ed to the
vulnerabilit! assessment and relies inter alia on list of
relevant/positive activities
AFD / Stratgie Climat-Dveloppement 2012-2016 6
Project selectivity
Categor, 1
%SSA5 BDCs5 priorit, an& poor
contries in crisis'
Categor, 2
%.i&&le Income Contries'
Categor, 3
%Contries ;ith /reen an&
Inclsive /ro;th man&ate'
.ICI/ACIO2 pro9ets D pro9ets
;ith 2-/BI/I"B- climate
%+et;een -10#t
an& 10#t
<-S <-S <-S
%+et;een 10t
an& 1.t
<-S <-S
if the loan is not concessional
!n case of concessional loan, <-S
only if the country has an
acceptable climate policy
?I/?B< -.ISSIE-
%more than 1.t
with conditions on lending
concessionality unless the country
has an acceptable climate policy
unless the country has an acceptable
climate policy
avoid highly emissive projects" fle#ibility to take into account the
e#istence of $$ policies, the capacity of the country
.itigation %emissions re&ction or car+on
A development project contributes to GHG emissions
reduction when the emissions reduction it generates are greater
than emissions produced during its lifetime
Tracking methodology% based on e#&ante project carbon
footprint calculation (should be '0)
A&aptation %to climate change impacts'
An adaptation project is a development project that reduces
goods, people or ecosystems vulnerability to climate risks
Tracking methodology% based on characteristics of the project
and local vulnerability to $$
Spport to national an& territorial climate
strategies an& action plans 5 CC cre&it lines
(budgetary support or technical assistance dedicated to develop
national strategies, NAAs, local climate plans!"
Tracking methodology% based on (evelopment )olicy *oan+s
triggers (prorata)
Climate finance tracking: Climate projects are
development projects ith climate co-!enefits
AFD / Climate-Development strateg, 2012-2016
jj mmmm aaaa Citre &e la prsentation 9
In1ormation &isclosre: annually
amount of $, with disaggregate
information by geography, themes,
.onitoring o1 or strategic
o+9ective (-0% of climate
)articipation in several reporting5
mapping an& &isclosre
processes among FI (.E$(,
!(,$, /ilateral ,inancial !nstitutions)
,igures t$.2e0/y reduced&avoided
via climate funding ( without budget
support, or credit lines)
200-&2013 $limate commitments
Climate " target achievement
AFD scope : Financial commitments of the year (e#cept G$%, garantee and &'(" i)e) *+, of the total financial
commitments in '-./)
Proparco scope : Financial commitments of the year (including AF( sub participation"
AFD / Climate-Development strateg, 2012-2016
Financing that contri!#tes to climate change mitigation $200% &
16 AFD / Climate-Development strateg, 2012-2016
.ainstreaming o1 CC into pro9ect appraisal process %
F increase& &ialogeF &esign alterationFoptimiGing +ene1its at
)ro9ect level
. Consoli&ate& mapping o1 Climate 1inance throgh IFI
hamoniGation initiatives:
For&er o1 magnit&e o1 sppl, o1 Climate 1inance 1rom
these instittions FF contri+tion to the shaping o1
&eman& %incl&ing throgh &ialoge ;ith IFI ;ith aligne&
.Overall strateg, see#s leverage:
Freaching ot/spporting national p+lic policies
Fscaling p interventions o1 local 1inance actors %p+lic an&
Scale-p potential
AFD / Stratgie Climat-Dveloppement 2012-2016 1H
Leverage : appropriate instruments
Care1l se o1 varie& 1inancial tools %grants5 concessional
loans5 loans at mar#et con&itions5 investment 1n&s 5
garantees /ris# sharing mechanisms' an& choice o1 sectors
%massive impact5 trans1ormational potential enter into
. One 1inancial instrment ;ith high leverage on private
1n&ing: CC Cre&it lines an& spport to local +an#s an&
. One 1inancial instrment ;ith high impact on national /
regional climate p+lic polic, an& the implementation o1 CC
action plans : "&get spport loans to national5 mlti-
sectoral5 sectoral or territorial investment an& capacit,
+il&ing programs
06/02/2013 )ro9ect car+on 1ootprinting at AFD /rop 13
CC Credit lines

CC credit lines!
"each smaller projects #$$% "$& ' offer
appropriate terms and conditions'
Feature dedicated technical support to build
technical capacity (ithin local commercial
ban) in assessing "$*$$ projects #technical
and financial&
coupled (ith ris) sharing instrument
o(erful tool to(ards the encouragement of
ne( specific ($$+"$& full+fledged business
lines (ithin local Commercial
,an)s'transformational effect
3- partnerships of this )ind (ith ban)s
$." /%- billion commitments since 0005
Climate Change udget Support loans
,udget support based on design and implementation of a climate change action
Non allocated budgetar! loans of substantial amounts (-.00 /&01)
(nnounced for several !ears
)isbursements based on a 2 polic! matri' 3 established bet#een +overnment and
(F) and others development partners : amounts at sta,e allo# comprehensive
approaches* disbursement modalities ensure effective structuring effects
Technical assistance programfocusing on policy and*or emblematic projects
Continuous dialogue (ith authorities during life of the intervention % (ith follo(ing
Support design and implementation of operational climate change action plans / Follo#"up%
contribution to the evolution of related public policies (4T impact)
Facilitate inter+ministerial dialogue to mainstream CC considerations in political% budgetar!%
technical decision ma,ing
Facilitate country+led coordination of development partners and reinforce alignment of
activities (co"financing)
Contr, Co1inancing ;ith .ontants engags et signs
In&onesia J!$A, 1/, As(/
3 commitments : 200 34S(
CA volme % 1,64 35
!n parallel % /!(
En consistency with %
2 commitments : 42- 3E46
CA volme %7 3 35 (with 48E))
.arice $E (indirectly)
1 commitment % 12- 35
CA volme % 2,2 35
J!$A " $!(A " 1/
9 :orean E#im"
2 commitments % 403E46
CA volme % 0,6 35
Climate Change "&get Spport loans
sept 2013 10
Financial institutions
> )ro9ect level co-1inancing %alignment o1 &eman& an& policies'
> )artnerships at the international level on trac#ing/ acconting
!nternational (evelopment ,inance $lub /" !,!s / 3(/s
on $;< accounting" (,!s on mapping of $limate finance
> 8et;or# o1 actors +e,on& tra&itional ODA
!(,$ 2012 mapping suggest 3-&4- /n 4S( climate finance from large
national/regional development banks of non .E$( countries
3ain legitimate actors with country mandate on climate&development
Thank you
Geographical !reakdon
1H AFD / Climate-Development strateg, 2012-2016
Foc#s on emerging co#ntries
AFD / Climate-Development strateg, 2012-2016
Sectoral !reakdon of mitigation projects in 201'
1= AFD / Climate-Development strateg, 2012-2016