It’s a received idea still widespread in the four corners of the globe. : reducing greenhouse gas emissions would harm the economic growth of countries and go against the progress of societies. « It’s an urban legend!says Atika Ben Maïd, deputy head of the Climate and Nature division at the French Development Agency (AFD). If we take the Paris Climate Agreement for example, it is not a question of promoting any step backwards, but of low-carbon and resilient development trajectories. Otherwise we would sign for failure, there would be no overall support. »
Adrien Vogt-Schilb, economist at AFD, goes even further : « Mitigation of climate change through the reduction of greenhouse gas emissions is an economic opportunity, and not a sacrifice that is asked of developing countries even though they have not been the historical polluters. The latest study in which I participated on the subject, for example, evaluates the benefit of carbon neutrality at 3 000 billions of dollars for Latin America. »
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AFD has made the fight against climate change a priority and is working to support solutions that mitigate it and at the same time improve the well-being of populations and the economic situation of the countries where it operates. Here is his recipe.
Focus on agroecology
“The first lever for low-carbon growth is to increase agricultural yields, since producing more food on the same plot leads to less need for land, and therefore less destruction of ecosystems and CO emissions.2with higher incomes and greater food security »explains Adrien Vogt-Schilb.
With this in mind, agroecology is now essential to achieve this objective while limiting the use of synthetic inputs – that endanger biodiversity – to the contexts which justify it. This agricultural technique places nature at the center of a virtuous production system : the diversification of compatible and complementary crops on the same plot makes it possible to better meet the needs of each person while promoting biodiversity, which is itself valuable for regulating diseases and pests and allowing better renewal of natural resources .
In order to strengthen its support for agroecological transitions, AFD adopted a positioning note on the subject in 2023. That year, the projects – running or closed – financed by AFD enabled 631 000 family farms, in charge of 51 400 hectares of land, to be supported in their conversion to agroecological systems.
See also: 5 agroecology projects supported by the AFD group
Promote less polluting travel
Bus, metro, tram, train, cable car, river shuttle, bicycle…, the solutions to reduce greenhouse gas emissions from our transport are legion and their deployment leads to many other benefits : reduction in the cost of travel, air pollution, automobile congestion and accidents, health gains due to physical activity, or less impact on ecosystems and the services they provide us. « Each item on this list can easily represent a gain of 1-3 points of GDP in most countries of the world »underlines Adrien Vogt-Schilb.
The AFD’s objective is to encourage the development of livable and inclusive cities by investing in efficient public transport systems, in the promotion of “ active modes » (cycling and walking) and a better connection between the different modes of travel, as well as in the effective management of road traffic which must be electrified.
Between 2021 and 2023, 22 transport infrastructure financed by AFD was put into service or completed, resulting in improved access to sustainable transport for 6.4 million inhabitants.
In Türkiye, thanks to a loan of 200 million euros accompanied by a grant from the European Union of 15 million euros, AFD is supporting local authority bank Ilbank to finance urban transport infrastructure in ten cities and support, via subsidies, the creation or updating of sustainable urban mobility plans (PMUD) and studies on innovative aspects of mobility (electric, intelligent).
Solar, wind, hydroelectricity : these energy sources emit almost no greenhouse gases during use while now providing cheap electricity. They are therefore ideal for replacing fossil fuels wherever possible. According to Adrien Vogt-Schilb, « these technologies have already won. A photovoltaic solar power plant produces electricity that can support economic activity with a significantly lower carbon footprint. »
AFD currently supports 52 renewable energy infrastructure projects in Africa, Asia and South America. In 2023, funded and completed projects created 3 000 megawatts of renewable energy production capacity and offered at 203 400 people access to sustainable electricity services.
The Group has notably initiated several just energy transition programs (JETP) in partnership with local stakeholders – State, public and private companies, financial institutions, non-governmental organizations (NGOs) and even civil society – where he mobilizes his entire range of financial tools by following three common threads : support for the deployment of proactive and protective public policies, the promotion of inclusive planning and governance, and support for the creation of decent jobs and support for households and territories.
“Over the last five years, AFD has supported more than forty energy transition projects including a specific objective on the issue of equity. We operate in particular in South Africa, Vietnam, Indonesia and Senegal via JETPs (Just Energy Transition Partnerships), a new way of mobilizing climate finance “at scale” for the energy transition, with social justice. at the heart of priorities »explains Nicolas Guichard, head of the Energy division at AFD.
Read also: In South Africa, 300 million euros to support a just energy transition
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