ONE SUMMIT PLANET; AFD pledges to devote at least 30% of its climate financing to Biodiversity
On the occasion of the One Planet Summit devoted to biodiversity, Agence Française de Développement has set itself the target that 30% of its climate funding should be favourable to biodiversity by 2025, while at the same time doubling its investment efforts in favour of biodiversity, to reach €1 billion.
Through these commitments made at PAHO, AFD is actively contributing to building a dynamic for the international mobilization of resources for the conservation and sustainable use of biodiversity with a view to the COP15 to be held in China in a few months time.
The convergence of climate and biodiversity commitments: 30% of climate finance directly in favour of biodiversity.
Climate objectives and the preservation of the biosphere are intrinsically linked. Scientists consider that at least 30% of the solutions to the effects of climate change lie in nature, i.e. in healthy forests, oceans, grasslands or wetlands. However, responses to these two challenges are still too often implemented in isolation.
At the January 2021 PAHO, France therefore committed to ensuring that 30% of its climate finance is directly favourable to biodiversity by 2030; the French Development Agency has set itself the target of reaching this objective by 2025. In order to achieve this goal, AFD will step up its investments in biodiversity co-benefit operations by promoting the use of nature-based solutions (NBS).
A doubling of biodiversity finance: €1 billion by 2025
AFD's objective is to reach 1 billion euros of financing for biodiversity conservation and sustainable use by 2025. This doubling will be achieved by consolidating dedicated financing on the one hand and by mainstreaming biodiversity in all sector operations on the other.
Therefore, new funding should include greater sensitivity to biodiversity, particularly in the water, sanitation, agriculture and agro-ecology, livestock, especially pastoral and "ocean" sectors, where the potential is greatest. The urban, mobility and energy sectors, as well as the financial sector, will also have to mobilise part of their climate financing by associating explicit biodiversity objectives. For example, AFD will support the implementation of the Great Green Wall in the Sahel with 600 million euros to promote social and economic solutions that are favorable to nature and the resilience of this key region for Africa, Europe and the world.
AFD promotes a pro-nature economy
AFD is heavily involved in the informal working group for the creation of a TNFD (Task Force on Nature-related Financial Disclosures) which aims to redirect large-scale financial flows towards activities that are positive for biodiversity and people. This objective requires the rapid implementation of an analytical framework for financial institutions that will enable them to better understand and act on their risks, dependencies and impacts on nature.
In this perspective, AFD Group is implementing or contributing to several initiatives to develop solid knowledge bases and methodologies concerning biodiversity, with the Data4Nature initiative, or with the contribution to the "Little Book on Investing in Nature", an essential tool for mobilizing public and private actors in favor of a pro-nature economy, published worldwide on 11 January 2021.
The adoption of a new biodiversity strategy
In order to meet its biodiversity objectives and take up the challenge of biodiversity preservation, AFD adopted a new territorial and ecological transition strategy (TTE) last October with a biodiversity roadmap and a specific intervention framework on oceans. AFD is opting for an innovative territorial approach that combines urban and rural issues to better respond to global challenges. This approach for biodiversity includes in particular the strengthening of conservation efforts and the active consideration of biodiversity, particularly in the areas of agriculture and rural development, water and sanitation, urban development and planning and climate change adaptation, also with regard to the private sector and the mobilization of funds.
In 2021, the fourth edition of the One Planet Summit marks a very important milestone for the convergence of the climate and biodiversity agendas, five years after the Paris Agreement and just a few months before the Conference of the Parties to the Convention on Biological Diversity. In this context, France is committed, at the request of President Macron and the government, to ensuring that 30% of its climate finance is directly favourable to biodiversity. I am proud that Agence Française de Développement is helping to achieve this objective by decompartmentalizing its funding, teams and projects from 2025 onwards, in order to become a true "planet" donor. AFD is also working to promote climate-biodiversity convergence within the framework of the Finance en commun coalition which was formed at the first meeting of the world's 450 other public development banks on 12 November 2020.