AFD // 2021 Universal Registration Document

PRESENTATION OF AFD Activities of the Agence Française de Développement Group in 2021

This “regional integration” dimension is receiving increasing attention. In 2021, AFD approved an original project in the African aviation sector. It aims to improve air navigation safety and also to avoid substantial GHG emissions and reinforce regional integration. The project is the beneficiary of a large European grant. AFD is also supporting a new partnership for green and resilient ports in the Indian Ocean. More than half of new commitments are concentrated in Africa. In South-East Asia, resources were allocated to prepare air quality projects, in accordance with the new strategic focus of the Urban Territorial Transition and Mobility Department. P ii. The year in 2021 was marked by the approval of the mid-term review of the Energy Transition Strategy, after the first two years of its implementation. This review was an opportunity to conduct an initial assessment, which confirmed the Group’s main intervention priorities, but also made it possible to further develop the Strategy’s climate goal, notably by terminating financing for electricity and heat (1) production using gas. Through this enhanced selectivity, announced at COP26, AFD joined a coalition of countries and financial institutions in committing to phase out international fossil fuel financing (Statement on international public support for the clean energy transition). In 2021, despite the health context and the postponement of a certain number of projects, energy remained a significant component of the Group’s commitments. The year in 2021 was thus marked by an increase in commitments in the field of renewable energies and networks, covering a wide range of technologies (solar, hydro, biomass, wind), countries and financial tools (sovereign and non-sovereign financing, Proparco and OCN loans, green credit lines). With regard to energy efficiency, the preparation and support work carried out by the Programme on Energy Efficiency in Buildings (PEEB) continued, and made it possible to commit nearly €400M to building projects with high energy performance standards, i.e. double the commitments in 2020. At the end of the year, European funding was obtained to roll out this approach on a larger scale in the Mediterranean region, PEEB Med. The year in 2021 also saw the reinforcement of actions in terms of public policy dialogue and support for long-term decarbonisation strategies, associated with structuring technical cooperation components, including the exchange of expertise among French and local actors in the countries of intervention. In 2021, Asia remained AFD’s main area of intervention in the energy sector, with strong activity in the Eurasia

5. In 2021, approvals in relation to governance decreased by 11%, bringing the total amount approved in this sector to €0.56bn, compared to €0.63bn in 2020. In 2021, nearly 75% of financing in the field of governance was allocated to the African continent, which remains the main region of intervention and which concentrates the greatest variety of themes and projects implemented. It should be noted, moreover, that governance activities are now underway in 47 ɸ countries, with a notable breakthrough in 2021 in Latin America (Mexico, Bolivia, Ecuador and Costa Rica), through an Environmental and Climate Justice support project (a theme which was also the subject of additional financing in Laos). Other themes continue to be developed and receive technical and financial support, such as gender sensitive budgeting in Morocco and Jordan. Lastly, emerging issues are the subject of positioning and prospecting studies, such as parliamentary support, mutual criminal assistance or electoral processes. 6. In 2021, the infrastructure and urban development sectors continued to represent almost one-third of AFD’s commitments in Foreign States, with a total up slightly to €2.66bn (compared to €2.60bn in 2020). These commitments cover four sectors: transport, energy, urban development and infrastructure. P i. After a year in 2020 severely affected by the Covid-19 crisis, the appraisal and implementation of transportation projects resumed in 2021 and a number of projects that were under preparation for several years could be completed. Among new commitments in 2021, “urban mobility” was of particular significance, as it represented three quarters of commitments, with a great diversity of projects. Thus, the financing committed in 2021 includes relatively traditional capacity-based collective transport projects, such as the Turkish metros and trams, the Saint Domingue metro, and the High-level Service Bus in Agadir in Morocco (which is a precursor of future interventions in secondary Moroccan cities). They also reflect AFD’s desire to support all the components of an urban mobility systemwith, for example, the Yaoundé Cœur de Ville project in Cameroon, in which special attention was paid to pedestrian pathways and the professionalisation of small-scale transport operators. Within the “national connectivity” area of intervention, two projects in the rail sector, in Egypt and in Serbia, were launched and AFD pursued its commitments on road safety in Africa, alongside partners such as IRD or CEREMA (Centre for Studies and Appraisals on Risks, the Environment, Mobility and Planning). In addition, the ongoing financing of the Route du Nord in Côte d’Ivoire has a dual dimension: national, since it includes a rural mobility component, and regional, because the project strengthens the Abidjan-Ouagadougou corridor.

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(1) Excluding heat production in industry and construction. A project dedicated to a detailed analysis of alternatives in these sectors will be conducted in 2022.

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2021 UNIVERSAL REGISTRATION DOCUMENT