Green Finance

Impacts of climate change and environmental degradation know no borders, traversing regions and many sectors, and affecting human health, agriculture and food security, water supply and sanitation, transportation, and energy supply, among many others. The financial sector plays a key role in catalysing financial flows towards the transition to a more sustainable economy. Investments in climate mitigation and adaptation measures are therefore essential.

AFC advises financial institutions in the development and implementation of their environmental and social management system. Such system influences all financial products and services by ensuring that they are not only commercially viable, but also they ensure environmentally and socially responsible. AFC supports financial institutions in identifying, assessing, and effectively managing the environmental, social and governance (ESG) risks generated by the activities and projects they finance.

AFC supports its clients and partners to develop, implement, and promote innovative financial products supporting a smooth transition to a climate-resilient economy, raising awareness in climate risk, and demonstrates the opportunities and benefits of climate-friendly investments.

Since 2007, when AFC became a member of the GOPA Group, we have built a close working relationship with sister companies like GOPA Infra with their expertise in infrastructure development; GOPA Intec, excelling in Energy Efficiency (EE) and Renewable Energy (RE) technologies; or GOPA Worldwide rural development and environment unit which is active in tackling climate change and depletion of natural resources. An outstanding example of productive synergies among GOPA companies is the “Green Climate Fund (GCF) Readiness Support Programme” which has been implemented by several GOPA units, with essential technical input from AFC in screening and evaluating investment proposals, building a project pipeline for financing, as well as in Climate-Resilient Agriculture.

AFC’s experience in climate finance further expands to developing green loan products including EE and RE financing for SMEs and households, including a KfW-funded project with the Land Bank of the Philippines (LBP), and a project of the Green for Growth Fund (GGF) in Armenia and Azerbaijan.

In environmental finance, AFC contributed to the development of financing mechanisms for the sustainable management of natural resources in Colombia for the GIZ Environment and Peace Project (AmPaz) and facilitated biodiversity-friendly financing investments in the private sector through the KfW/ EADB in Uganda. In addition, AFC is proud to have developed an e-learning course on Climate Finance, Resilience, and Financing for Biodiversity Impact.

In East Africa, AFC has supported 15 financial institutions to manage ESG risks in their activities through the EIB Technical Assistance Programme and provided trainings in Climate Risk Management and Opportunities, highlighting the need for climate-related financial disclosure. AFC has implemented further projects in the field of Green Finance in Kyrgyzstan, Tajikistan, Madagascar, Turkey, Egypt, Laos, Cambodia, and Vietnam.