Climate-development

approach
LCFW 26-28 08 2014
AFD GROUP

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
.-3it,
./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
change@
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 http://climat.afd.fr
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!)
=0A
30A
=0A
>0A
1.1
23/10/2012 )ro9ect car+on 1ootprinting at AFD /rop 6
impact assessment
MITIGATION
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
ADATATION
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
impact
%+et;een -10#t
e3
CO
2
/,ear
an& 10#t
e3
CO
2
/,ear'
<-S <-S <-S
-.ISSIE-
pro9ect
%+et;een 10t
e3
CO
2
/,ear
an& 1.t
e3
CO
2
/,ear'
<-S <-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-
pro9ects
%more than 1.t
e3
CO
2
/,ear'
<-S
with conditions on lending
concessionality unless the country
has an acceptable climate policy
2O
unless the country has an acceptable
climate policy
2O
avoid highly emissive projects" fle#ibility to take into account the
e#istence of $$ policies, the capacity of the country
9
.itigation %emissions re&ction or car+on
se3estration'
A development project contributes to GHG emissions
reduction when the emissions reduction it generates are greater
than emissions produced during its lifetime
Tracking methodology% based on e#&ante project carbon
footprint calculation (should be '0)
A&aptation %to climate change impacts'
An adaptation project is a development project that reduces
goods, people or ecosystems vulnerability to climate risks
Tracking methodology% based on characteristics of the project
and local vulnerability to $$
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
Results
jj mmmm aaaa Citre &e la prsentation 9
1.>
In1ormation &isclosre: annually
amount of $, with disaggregate
information by geography, themes,
instruments
.onitoring o1 or strategic
o+9ective (-0% of climate
commitments)
)articipation in several reporting5
mapping an& &isclosre
processes among FI (.E$(,
!(,$, /ilateral ,inancial !nstitutions)
,igures t$.2e0/y reduced&avoided
via climate funding ( without budget
support, or credit lines)
200-&2013 $limate commitments
Climate " target achievement
13
AFD scope : Financial commitments of the year (e#cept G$%, 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% &
201'(
16 AFD / Climate-Development strateg, 2012-2016
1
2
.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&
approaches'
.Overall strateg, see#s leverage:
Freaching ot/spporting national p+lic policies
Fscaling p interventions o1 local 1inance actors %p+lic an&
commercial'
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
consi&eration'
. One 1inancial instrment ;ith high leverage on private
1n&ing: CC Cre&it lines an& spport to local +an#s an&
S.-s
. 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
$." /%- billion commitments since 0005
"FI
17
Climate Change udget Support loans
,udget support based on design and implementation of a climate change action
plan
Non allocated budgetar! loans of substantial amounts (-.00 /&01)
(nnounced for several !ears
)isbursements based on a 2 polic! matri' 3 established bet#een +overnment and
(F) and others development partners : amounts at sta,e allo# comprehensive
approaches* disbursement modalities ensure effective structuring effects
Technical assistance programfocusing on policy and*or emblematic projects
Continuous dialogue (ith authorities during life of the intervention % (ith follo(ing
objectives
Support design and implementation of operational climate change action plans / Follo#"up%
contribution to the evolution of related public policies (4T impact)
Facilitate inter+ministerial dialogue to mainstream CC considerations in political% budgetar!%
technical decision ma,ing
Facilitate country+led coordination of development partners and reinforce alignment of
activities (co"financing)
2
1
6
Contr, Co1inancing ;ith .ontants engags et signs
In&onesia J!$A, 1/, As(/
3 commitments : 200 34S(
CA volme % 1,64 35
.eIico
!n parallel % /!(
En consistency with %
1/
2 commitments : 42- 3E46
CA volme %7 3 35 (with 48E))
.arice $E (indirectly)
1 commitment % 12- 35
CA volme % 2,2 35
Eietnam
J!$A " $!(A " 1/
9 :orean E#im"
AusAid
2 commitments % 403E46
CA volme % 0,6 35
Climate Change "&get Spport loans
sept 2013 10
Financial institutions
partnerships!harmoni"ation!coordination
> )ro9ect level co-1inancing %alignment o1 &eman& an& policies'
> )artnerships at the international level on trac#ing/ acconting
proce&res
!nternational (evelopment ,inance $lub / www.IDFC.org" !,!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
>
1
2
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