Non-fossil to fossil energy ratio and scaling up climate investment in all sectors

Paris alignmentReasoning
Paris alignedFor every $1 AFD Group provided to fossil fuels, $25 went to renewables in the period 2018 -2020. There was no fossil financing in 2020.


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.

Last Update: November 2022

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