Renewable energies and energy efficiency

The Paris Agreement in 2015 reaffirmed the urgency of rapidly reducing global greenhouse gas emissions in order to achieve carbon neutrality in the medium term. To actively contribute to this huge challenge, Proparco has made promoting low-carbon development, resilient to the impacts of climate change, central to its strategy for 2020-2022.

To meet the challenge of climate change and ensure access to affordable, reliable and sustainable energy, our main focuses are projects that aim to produce energy from renewable sources and energy efficiency.

Despite a difficult economic context, 16 projects with climate co-benefits were financed in 2020.

Proparco is among the most active Development Financial Institutions in the fight against climate change.

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Our goal : 2bn earmarked for projects that contribute to the fight against climate change by 2020

Introduction

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Proparco, an institution committed to the fight against climate change

Climate change is a tangible reality. To deal with this threat, AFD Group and Proparco, have been pursuing an ambitious programme for the past decade. To this end we support private actors who are turning climate challenge into an opportunity. 

In 2020, despite the marked decline in its level of activity due to the Covid-19 crisis (-25%), Proparco committed €548 M of financing with climate benefits approved for 24 new projects.

In 2020, Proparco also continued its financial commitments  to  climate  change  adaptation  by approving three projects to improve water resources management.

 

         

ICCF

Installation des panneaux solaires

Interact Climate Change Facility

Working with its European partners, Proparco has also helped create a facility dedicated to cofinancing renewable energy and energy efficiency projects led by the private sector in developing and emerging economies: Interact Climate Change Facility. This stands as one of the most successful lender collaboration accomplishments to date.

 

Our main focuses

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RENEWABLE ENERGY PRODUCTION

Projects that aim to produce energy from renewable sources.

WIND, SOLAR, HYDRO, BIOGAS, BIOMASS, ETC.

ENERGY EFFICIENCY

Projects that aim to reduce consumption of conventional energy.

BUILDING, INDUSTRIAL PROCESSES, TRANSPORT, ETC.

ACCESS TO ENERGY

Projects providing energy access in remote regions.

RURAL ELECTRIFICATION, OFF-GRID FINANCING FACILITY, ETC.

ADAPTATION

Projects that aim to help populations adapt to climate change constraints.

TECHNOLOGIES THAT HELP TO REDUCE WATER CONSUMPTION OR ADAPT TO WATER STRESS.

European Partnership for Climate

Panneaux solaires de Providencia Solar

A European partnership to mobilise businesses and investors against climate change

Climate change is one of the major challenges of the 21st century. International Energy Agency (IEA) has calculated investment needs, to avoid global temperature increase of more than 2°C, at USD 590 billion annually for OECD countries and USD 769 billion for non-OECD countries by 2035.

Private actors will be key players in the transition to more eco-friendly economies, by developing projects that have a "climate benefit" such as renewable energy projects, e.g. wind farms or solar power plants, or other projects that contribute to the reduction of greenhouse gas (GHGs) emission.
To enable them to play their part as fully as possible, Proparco has stepped up for years its cooperation with its European counterparts (EDFI). Thanks to the partnerships, Proparco can take on larger-scale projects and mobilize greater financial resources.

Since 2009, their investments dedicated to climate change mitigation were quadrupled: from €517 million to €2,167 million for a cumulative total of 6,174 million.

Green Bonds

Using finance to promote climate solutions

Green bonds are a component of the fight against climate change in that they increase the funding available for low-carbon investment projects.

Green bonds clearly have the wind in their sales, with issuance in 2016 alone exceeding US$100bn, but they are still a rarity in emerging markets, not to mention developing economies.

  • Proparco invested in 2017 in the first green bond issuance by Banque Centrale Populaire (BCP), to promote sustainable, environment friendly projects in the country. Read more about this project
     
  • in 2017, Proparco has invested US$100m in Amundi Planet – Emerging Green One. The fund’s brief is to invest in “green bonds” to be issued by financial institutions in emerging and developing countries over the next seven years. US$1.2bn have already been committed to this new fund, making it the largest green bond fund operating in those geographies. Find out more

Like Amundi, Proparco and AFD belong to Finance for Tomorrow, an initiative launched by Paris financial market participants with the aim of promoting sustainable finance in France and abroad.

The Green, Social and Sustainability (GSS) bond market saw significant growth over the past years, with cumulative issuances reaching USD 1 trillion in 2020. 

Proceeds are exclusively used to finance or re-finance, in part or in full, new and existing eligible projects with positive environmental and/or social benefits. 

Through a technical assistance facility, Proparco supports partner banks in the development of GSS bond frameworks contributing to the UN Sustainable Development Goals.

€ 548 million
approved for projects with a positivie impact on climate change in 2020
719,000
teq CO2 will be avoided per year thanks in 2020

But our goal is to go even further. Proparco will draw on its expertise in “climate” finance to scale up its financial commitments for projects with lower emissions (mitigation) and models which increase resilience to climate change (adaptation).

In order to continue to mobilize private sector funds for the fight against climate change, Proparco will support new initiatives, such as the creation of equity investment vehicles for renewable energies, and the development of a syndication capacity, or the allocation of loans in the climate sector.

Proparco will finance climate change adaptation projects in order to help its clients establish new practices: direct financing or via credit lines to banks, by encouraging banks and microfinance institutions to develop products to finance their clients’ adaptation to hese new situations (particularly in the agricultural sector).

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Institutional Documents

Sustainable Development Report 2020

Proparco is publishing its third sustainability report, with figures to the end of 2020.This…

Jun 2021
Institutional Documents

Propulse - Development of a Green, Social and Sustainability bond framework

The Green, Social and Sustainability (GSS) bond market saw significant growth over the past…

Jun 2021
EDFI Key Documents

Investing for a greener future

With this booklet, we would like to share examples of initiatives and investments of EDFI members…
Dec 2017
Institutionnal publications

Financial institutions as key contributors to climate action

This brochure aims to sensitize financial institutions to their role in the fight against climate ch

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Mar 2021
Private Sector and Development

Private Sector and Development issue 35 : Preserving biodiversity, the private sector in action

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Special issue: Independent power producers: a solution for Africa?

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Scaling-up private sector climate finance

This twenty-second issue of Private Sector & Development investigates the private sector's role in fi...
Oct 2015
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Independent power producers: a solution for Africa?

Independent power
producers: a solution
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Nov 2013
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