Policy Context

According to France’s CICID and the 2021 Development Law, fighting climate change is stated as one of the five key priorities for French development cooperation. Further, one of the three objectives prescribed by the Development Law is the protection of global public goods, especially in the context of climate change.

France focuses its effort in climate change mitigation and adaptation on strengthening biodiversity and supporting the energy transitions of LICs and MICs.

In June 2023, President Emmanuel Macron hosted the Summit for a New Global Financial Pact in Paris, which aimed to rethink the global financial architecture and mobilize financial support for LICs and MICs, especially to fight climate change and adapt to the impacts of climate change.

ODA Spending

How much ODA does France allocate to climate projects?

France was the 4^th largest donor for projects related to climate change mitigation and adaptation in 2022.

This funding represents 59% of France’s bilateral allocable ODA, putting it in 3^rd place among DAC donors in terms of its relative prioritization of climate change-related projects.

How is France's climate ODA changing?

Climate change is a longstanding priority of French development policy, particularly since the 2015 Paris Agreement, as well as the global commitment to mobilize US$100 billion per year from 2020-2025 by HICs.

How does France allocate climate ODA?

Bilateral climate-related ODA

Bilateral climate adaptation-related ODA

France's bilateral ODA to climate adaptation increased by 133% between 2017-2021. It peaked in 2020 due to an increase in both principal and significant funding and a notable increase in funding to the agriculture sector in SSA and various sectors, including government and civil society in South America. Significant funding reached an all-time high in 2021, with most of this going to partners in SSA.

The largest share of France’s adaptation-related ODA in 2021 was categorized ‘multi-sector’, a majority of which went to urban development and management. Under environmental protection, biodiversity and environmental policy and administrative management are the two sub-sectors that received the most adaptation-related ODA in 2021.

Under Agriculture, over 80% of the adaptation-related ODA went to rural development and agricultural development.

Funding to WASH is largely channeled to water supply and sanitation systems.

The 5^th-largest sector that received adaptation ODA in 2021 was financial services, within which almost 90% went to formal sector financial intermediaries.

Multilateral Spending and Commitments

In addition to bilateral flows, France contributes to climate change adaptation and mitigation in LICs and MICs through its contributions to multilaterals.

Funding Outlook

What is the current government's outlook on climate ODA?

At COP27, France reiterated its commitment made at COP26 to allocation US$7.1 billion per year for climate change. Of this amount, US$2.4 billion is allocated for adaptation, with a focus on countries in Africa, and especially within its 19 PPPs. France also highlighted its commitment to financing Just Energy Transition Partnerships with South Africa, Indonesia, Senegal, and India.

The AFD committed to disbursing 50% of its financing to climate-related programming, a target which it surpassed in 2021 when it disbursed US$7.1 billion to climate-related programs. The AFD’s Climate and Development Strategy 2017-2022 outlined its climate priorities. The AFD was also appointed chair of the IDFC in October 2017, which strongly emphasizes climate action.

In May 2024, France via the French Ministry of Finance and Economy, was appointed to co-chair the Loss and Damage Fund alongside South Africa. The Loss and Damage Fund was created following COP28, in order to meet the needs resulting from the damaging impact of climate change. The first Board of Directors meeting of this new fund was held from April 30 to May 2 in Abu Dhabi, United Arab Emirates. The first decision on the agenda was to appoint the two co-chairs, whose role will be to organize the work of the Fund's Board and establishment of the Fund as a Financial Intermediary Fund with the World Bank. The next meeting is due to take place in July.

Key Bodies