| Paris alignment | Reasoning |
|---|---|
| Paris aligned | For every $1 AFD Group provided to fossil fuels, $25 went to renewables in the period 2018 -2020. There was no fossil financing in 2020. |
Explanation
For every $1 AFD Group provided to fossil fuels, $25.4 went to clean energy and $5.6 went to Transmission & Distribution between 2018-2020. This is the highest ratio E3G has seen for the Public Banks it has assessed, which is excellent.
The AFD Group achieved 49% financing of projects with climate co-benefits in 2021, according to their investor presentation. However, in its mid-term review of its climate strategy it was stated that “The target of 50% climate finance in foreign countries, set at Group level since 2018, has been reached”. The difference lies in different geographical scope of these two documents.
Furthermore, Proparco plans to reach a 44% share of climate finance by 2022. In 2021, the AFD achieved 58% of commitments with climate co benefits whilst Proparco only reached 34%.
The Climate Strategy also provides differentiated targets based on geographical areas which were further updated in the mid-term review. Climate commitments should represent at least 70% of funding for Latin America, 65% for the Middle East and Asia and 40% for Africa. The AFD (excluding Proparco) has exceeded these targets in Africa and Latin America between 2017-2019.
