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Integration of Climate Change into the operational activities of Agence Française de Développement

This case study from the Institute for Climate Economics (I4CE) examines the AFD’s integration of climate and transition-related information and tools into its activities.

It presents the general investment process and the range of financial instruments used by AFD as well as applies the framework elaborated in paper two of this series to analyze the upstream and downstream integration of long-term climate and transition objectives.

Key points

The study provides an overview of how AFD uses upstream standards and information tools to transpose its global strategy and Climate Action Plan into local and sectoral intervention plans and to guide AFD’s initial project screening through its selectivity matrix. It then explores the GHG quantification and vulnerability screening tool used during downstream process for project and program level assessments and optimization, and finally the AFD’s Sustainable Development Second Opinion that is elaborated before final investment decisions are made.