CDB and AFD strengthen their strategic and operational cooperation
On 9 January 2018, M. HU Huaibang, President of CDB, and Mr. Rémy Rioux, CEO of Agence Française de Développement (AFD) as the two major Chinese and French development finance institutions, signed an ambitious MoU at the occasion of the visit to China of the French President, Mr. Emmanuel Macron.
This MoU aims at further strengthening the cooperation between the two institutions on both the strategic and operational levels, and on a bilateral basis as well as in the framework of the International Development Finance Club (IDFC). IDFC gathers the major national, regional and international development finance institutions of the planet. With total assets of more than USD 3500 billion and annual commitments of 800 billion, of which 160 billion for climate action, IDFC is the main provider of public finance for sustainable and climate-smart development worldwide. AFD and CDB currently are Chair and Vice-Chair of the club.
In particular, CDB and AFD will increase their cooperation in the field of climate finance, following the ONE Climate Summit in Paris in December 2017. During this event, CDB and AFD together with all members of IDFC and all multilateral development banks issued a statement for a comprehensive and ambitious collaboration on enhanced climate action.
In line with the commitments of the Governments of France and the People’s Republic of China in the fight against climate change, CDB and AFD will join forces to align financial flows with the Paris Agreement and to collaborate on the many areas needed for transitioning towards low-carbon climate resilient sustainable development. This includes shifting from fossil fuels to renewables and putting in place more explicit policies to exit from or significantly reduce reliance on fossil fuels, and rapidly accelerate financing for renewables.
The MoU further encourages operational cooperation between CDB and AFD, by promoting cofinancing operations in third countries in Africa, Asia, Latin America and the Mediterranean.
It finally promotes joint external communication
The MOU illustrates the importance of new cooperative approaches between development finance institutions, to contribute to the collective governance and action needed to fight climate change and implement sustainable development.