Helping combat climate change
One of the core focuses of PROPARCO’s strategy is to finance low-carbon projects. This includes financing renewable energy projects (wind, geothermal, micro-hydro…), as well as projects for energy efficiency, biofuels, biogas and biomass recovery, etc.
AFD Group has an in-house tool to measure the carbon footprint of the projects it finances, Bilan Carbone® and to support its strategic decision-making.This strategy initially focused on developing and least developed countries, has gradually been extended to all emerging countries. PROPARCO’s action helps increase the energy independence of the countries where it works, while contributing to the fight against climate change. In 2010, PROPARCO financed 17 projects in this sector totaling EUR375m. This proactive policy supports promoters of innovative projects in countries with high potential of renewable energy generation.
PROPARCO, through the partnership it has built with CDC Climat in 2011, has extended its range of financing by investing in carbon credit purchases. This activity will allow a large number of projects, located mainly in the Mediterranean and Sub-Saharan Africa, to come into operation and these two regions to benefit from additional resources.
Between 2007 and 2010, PROPARCO’s financing and cofinancing contributed to reduce annual greenhouse gas emissions by 8.1 million Teq CO2 and to generate 2 242 MW of renewable energy power.