AFD - Universal Registration Document 2020

STATEMENT OF NON-FINANCIAL PERFORMANCE 2 The Group’s contribution to sustainable development

2.4.3.2 AFD’s climate financing in 2020 In 2020, the AFD Group approved 202 climate projects in foreign States, for a total amount of €5.2bn in financing (down compared to 2019 but beyond the target to which AFD was committed at COP21 in 2015 of providing €5bn in climate finance per year by 2020). In this way, 50% of the Group’s financing produces co- benefits for the climate, thereby achieving the goal set in 2012 that was renewed in its Climate and Development strategy. The climate projects financed in 2020 cover two areas, namely: P climate change mitigation: €2.9bn in financing; P adaptation to the impacts of climate change: €2.3bn in financing. The Group’s climate finance volume in 2019 exceeded the goals set in its Climate and Development strategy one year ahead of schedule, i.e. “to reach €5bn of climate finance volume, including €1.5bn for adaptation in 2020”. 36 mitigation projects will help to avoid 4.6 Ǿ MTeqCO 2 every year throughout their life cycle. Adaptation activities were undoubtedly perceived as more relevant in the context of the Covid-19 pandemic than mitigation activities. Climate finance in 2020 represented 47% of total commitments including the French Overseas Departments and Collectivities, and 50% without them. The Group is also continuing its action in the area of sustainable bonds. In 2014, the Group was the first issuer of a green bond in the French public sector, focused on the climate (€1bn at 10 Ǿ years), then, in 2017, it adopted a programmatic framework for climate bonds and continued its policy of regular issuance of Climate Bonds. The Group reached a new milestone in this area in 2020, with the publication of a renewed programmatic framework focused on the Sustainable Development Goals (1) . The purpose of this new Registration Document is to reflect the Group’s actions in all their environmental and social dimensions; it naturally follows the four pillars of the “Green Bond Principles & Social Bond Principles” which AFD signed up to, namely the justification of the use of funds, the process for examining the projects financed, the monitoring of flows and the requirement for robust reporting. The Group issued an inaugural 7-year SDG bond in October Ǿ 2020, in the format of asustainable bond, as well as a new 5-year climate bond of €1bn. At 31 Ǿ December 2020, the outstanding amount of climate bonds - incorporated in this new programmatic framework - was €3.25bn and that of sustainable bonds was € 2bn (2) .

2.4.3.3 A stronger partnership strategy In 2020, despite the postponement of the main deadlines of the climate and biodiversity agenda, AFD played a decisive role in keeping the climate and the SDGs high on the international agenda. In 2019, AFD was reappointed as Chair of the IDFC, which it has held since 2017, for this club which brings together 26 national and regional development banks. As such, AFD is working to better integrate climate issues at the technical and strategic levels. Finance in Common Summit co-organised by AFD in November Ǿ 2020 led to numerous commitments by the nearly 450 participating public development banks, with a view to aligning their financing with the Paris Agreement, to move away from coal financing, to take action in favour of biodiversity, and to accelerate investments in renewable energies (3) . At the Climate Ambition summit held on 12 Ǿ December 2020, to mark five years of the Paris Agreement, AFD was able to report on the momentum initiated with the coalition of public development banks for the climate and the SDGs. In 2020, as the host of the IDFC Climate Facility (4) , AFD supported the rapid and effective roll-out of the first member support activities. This enabled the IDFC to participate in the dialogue with the multilateral development banks on the common principles of accounting for climate finance, to improve and facilitate the annual reporting of green finance, to examine a request for a grant to the Green Climate Fund to strengthen IDFC’s ability to access international climate financing, and to create the necessary conditions for pooling efforts to increase its weight in the international debate. AFD continues its collaboration with the Green Climate Fund (GCF). It was accredited in 2015, and benefited from a framework agreement in 2017. In 2020, the GCF Board approved co-financing of US$38M for the EBAIO (Ecosystem-based adaptation) project in the Indian Ocean (5) . To date, five projects led by AFD have been co-financed by the GCF for a total amount of approximately €330M. In addition, AFD plays an active role in the roll-out of the strategic partnership between the GCF and IDFC thanks to the IDFC Climate Facility, which supports its members in the accreditation process and in improving their capacity to identify, advise and implement projects in accordance with GCF standards. The GCF awarded a US$700K grant to the Climate Facility to finance these support activities. AFD continued to focus on strategic dialogue with civil society organisations on climate change. It brought together, at the

(1) https://www.afd.fr/sites/afd/files/2020-10-07-33-42/cadre-emission-odd-afd.pdf (2) https://www.afd.fr/fr/actualites/communique-de-presse/finance-durable-succes-de-la-premiere-emission-dobligation-odd-de-lafd-pour-un-montant-de- 2-milliards-deuros (3) https://financeincommon.org/sites/default/files/2021-01/FiCS%20-%20Joint%20declaration%20of%20all%20Public%20Development%20Banks_0.pdf (4) https://www.idfc.org/idfc-climate-facility/ (5) https://www.greenclimate.fund/document/ecosystem-based-adaptation-indian-ocean-eba-io

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2020 UNIVERSAL REGISTRATION DOCUMENT