Acting for our planet

Proparco has made climate and biodiversity investment one of the three pillars of its 2023-2027 strategy. The aim is to ramp up its action in favour of biodiversity, climate change mitigation and adaptation, help its clients with their climate transition and promote innovative solutions to protect the planet.

Faced with the urgency of climate change and its ever worsening consequences, the Intergovernmental Panel on Climate Change (IPCC) highlights in its sixth report, the role that finance can play in channelling resources and harnessing the private sector to combat climate change and protect biodiversity.

In 2017, the AFD Group made a commitment to ensure that its activities are 100% compatible with the Paris Climate Agreement. Proparco is committed to ensuring this alignment for all the projects it finances and helps its clients to develop more resource-efficient and sustainable practices.

The AFD Group is France's main contributor to climate finance commitments for developing countries made during international negotiations. The global target of US$100 billion per year in 2020, including US$6 billion for France, was raised at COP29 to US$300 billion per year by 2035. The AFD Group has also set a target of €1 billion a year in pro-biodiversity financing, to which Proparco has been contributing since 2023.

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€912M in climate co-benefit financing

In 2024, Proparco authorised €912 million in climate co-benefit financing, including €50.3 million in adaptation co-benefits. This financing helps to achieve Sustainable Development Goal 13: ‘Take urgent action to combat climate change and its impacts.’

Our action to mitigate and adapt to climate change

Proparco places its commitment to the planet and carbon neutrality at the heart of its activities. It selects the businesses and financial institutions it supports based on their contribution to sustainable development – particularly with regard to environmental protection – and promotes responsible production and investment practices.

Project focus - GreenYellow is making full use of solar energy in Southeast Asia

GreenYellow is a French player specialising in the energy transition and an expert in decentralised photovoltaic solar power generation. Founded in 2007 and supported by Proparco, it helps its customers to reduce their energy consumption and transition to greener, less expensive energy.

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Partnering our clients in their climate transition

Proparco supports its clients with their transitions by helping them deploy new practices and encouraging banks and microfinance institutions to develop products designed to finance their clients' climate change adaptation strategy, especially in the agricultural sector.

Our technical assistance offering

Project focus - In sub-Saharan Africa, the ARAF fund is strengthening the climate resilience of smallholder farmers

The ARAF fund targets food security and climate change and it is financed by a number of partners and development finance institutions, including Proparco via AFD Group's FISEA+ facility. It invests in start-ups that have come up with innovative solutions to improve the conditions and climate resilience of smallholder farmers in East and West Africa.

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Partnering our clients in their biodiversity transition

Proparco continues to track the biodiversity co-benefits of its projects and its contribution to the AFD Group's nature commitments. In 2024, five projects with a positive biodiversity impact were launched in the water and sanitation, circular economy and agriculture sectors. Proparco also helped deploy a financing facility earmarked for natural capital projects, with the aim of ramping up actions that have a positive impact on ecosystems.

Project focus – Promoting regenerative agriculture, agroforestry and sustainable forestry projects

Proparco is supporting Mirova, a Natixis Investment Managers affiliate dedicated to responsible investment, which brings together a coalition of investors to promote regenerative agriculture, agroforestry and sustainable forestry projects in emerging countries. These focuses are closely aligned with Proparco's recently-adopted Natural Capital strategy.

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