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Case study

AFD’s program to make the financial systems converge with the climate agenda

In 2019, AFD Group launched a major program in partnership with the Green Climate Fund (GCF) named “Transforming Financial Systems for Climate” (TFSC) in 17 hosting countries, aimed at mobilizing Local Financial Institutions (LFIs) by building the financial instruments adapted to their needs and scale up private sector climate finance.

Key lessons
  • This partnership with the GCF allows AFD Group to scale up its blended finance towards climate objectives in its countries of interventions. This funding will lead to the gradual transformation of the strategy and practices of local financial players, and thus foster the emergence of a more sustainable socio-economic system, counting on a significant leverage effect on the private sector.
  • Moreover, this program allows AFD Group to maintain a strong and innovative position in climate finance initiatives to the benefit of our partnering institutions in potentially 17 hosting countries (financial institutions, financial regulators and supervisors, other institutional partners, etc.). Especially, additional efforts to bridge the climate adaption investment gap with the LFIs is a strong asset of the program.