AFD // 2021 Universal Registration Document

OUR 2018-2022 STRATEGY

Our 2018-2022 strategy The Group’s strategy is based on 5 commitments which come together as the #A Shared World vision.

commitments 5

100% Paris Agreement The Paris Agreement now stands at the heart of the AFD Groupmandate. The Agency will draw on public and private resources to fund capital investments that protect the Earth from climate change and biodiversity loss: all project funding will finance resilient lowcarbon development in keeping with the Paris Agreement. 1

100% social link AFD Group will base its actions on their capacity to reinforce social cohesion within populations and between territories, reducing inequalities — particularly gender inequality — and increasing access to education. 2

3 5 We are convinced that these two major commitments, 100% Paris Agreement and 100% social link, are closely linked and are the heart of the 2030 Agenda.

Non-sovereign first Alongside sovereign central governments, non-sovereign entities must also direct their investments toward attaining the Sustainable Development Goals. Local governments, public enterprises, civil society organizations, foundations, companies, and financial institutions all have a vital role to play. AFD Group will thus dedicate more funding to all of them in countries where it operates. 4

3D development thinking In fragile and crises-afflicted situations, sustainable development requires peace and stability, which in turn require resolutions for the social, political, and environmental causes of conflict. AFD Group pledges to uphold the third “D” in France’s Defense, Diplomacy and Development trinity. Promoting a 3D vision for conflict prevention, the Group will work alongside other development professionals, complementing the work of humanitarian organizations and the French diplomatic and military corps.

Partnership by design The f i fth AFD Group commi tment to working with partners will affect all Agency commitments and operating modes. The Group will apply a very simple principle: a project conducted with a third party is always better than one undertaken alone. TheUnitedNations2030AgendaforSustainable Development and the Paris Agreement on climate — in their comprehensiveness, geographic universality, and relevance at every level from central governments to civil society – require a collective response made stronger through partnerships. The new AFD Group strategy therefore features a systematic openness to all potential partners.

Implementing these 5 commitments requires us to look at the world in a different way. We will also have to incorporate the SDGs into a dynamic transitions policy and increasingly apply the results of research and innovation. The 6 transitions underlying AFD’s actions are:

#1. Demographic and social This means financing basic social services such as education and health and helping to improve social ties.

#2. Energy This means ensuring universal access to a reliable, sustainable, affordable source of low- carbon energy to help keep global warming below the 1.5ºC to 2°C mark in comparison with the pre-industrial era. #5. Political and civic Thismeans reinventing governancemodels to make them more inclusive and participative.

#3. Regional and ecological This means sustainably developing the potential of all land, urban and rural, with respect for the ecological and social issues at stake. #6. Economic and financial This means promoting diversified economic models and financial systems and channelling resources towards sustainable development.

#4. Digital andtechnological This means capitalising on digital, technological transfers and cross-cutting innovations to speed up development trajectories and achieve the SDGs.

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2021 UNIVERSAL REGISTRATION DOCUMENT