Focus Our actions to support the SDGs in 2020
Supporting the climate change mitigation and adaptation efforts of our clients
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The Paris Agreement in 2015 reaffirmed the urgency of rapidly reducing global greenhouse gas emissions in order to achieve carbon neutrality in the medium term. To actively contribute to this huge challenge, Proparco has made promoting low-carbon development, resilient to the impacts of climate change, central to its strategy for 2020-2022. Despite a difficult economic context, 16 projects with climate co-benefits were financed in 2020, only 3 less than in 2019. The 13 projects with mitigation co-benefits are expected to reduce emissions by 719,000 tCO2 eq per year. In terms of adaptation, Proparco stepped up its commitments in 2020, with 3 projects financed that support the adaptation or resilience of economies and people to the impacts of climate change.
Three of our clients’ projects with adaptation co-benefits financed in 2020 In 2020, Proparco stepped up its financial commitments for private projects that contribute to adaptation to the impacts of climate change by financing three of our clients’ projects in sectors particularly vulnerable to climate change - agriculture, and manufacturing industries: • I n Zimbabwe and Zambia, a $25 million loan to Seedco, the leading African seed manufacturer (see box opposite); • In Kenya, a $18.7 million loan to Kenya Nut Company, including $4 million to install a drip irrigation system that will save water; • In Egypt, a $20 million loan to T&C Garments, a jeans manufacturing factory (see box opposite).
Proparco's Sustainable Development Report 2020
Contributing to climate change adaptation for agriculture in Sub-Saharan Africa (Zimbabwe) While agriculture was a pillar of Zimbabwe’s once thriving economy, agricultural yields and production have plummeted over the last 20 years. The $25 million loan to Seedco Group, the leading African seed manufacturer, will finance the development of hybrid field seeds better adapted to climate change and the construction of a corn drying unit to reduce crop losses related to climate hazards and increase yields.
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Supporting the growth and green initiatives of T&C Garments in Egypt Through a $20 million loan to one of the leading jeans manufacturers in Egypt, Proparco is supporting the launch of two green initiatives: to improve wastewater filtration combined with the installation of a recycling system to reduce water consumption by 90%, and install solar panels that will meet 30% of the factory’s electricity needs.
