AFD Group’s position on carbon finance

Carbon finance is experiencing significant growth in the countries and sectors where the AFD Group operates, serving as a promising lever for additional funding toward mitigation projects and, more broadly, for development initiatives.

This position paper aims to outline the AFD Group's strategy for carbon finance to effectively leverage these mechanisms in support of its partners and counterparts while ensuring their integrity, both in the voluntary carbon market and in the future markets established under Article 6 of the Paris Agreement.

The document covers:

A review of the key issues in carbon finance, particularly regarding the gradual implementation of the mechanisms under Article 6 of the Paris Agreement, trends in the voluntary carbon market, as well as the opportunities and challenges to be addressed;
The AFD Group's areas of intervention in carbon markets;
The initial principles guiding the AFD Group's engagement in carbon finance, with the aim of ensuring these markets contribute effectively to the Sustainable Development Goals (SDGs).


Achieving the objectives of the Paris Agreement and the Global Biodiversity Framework requires high-integrity carbon finance, aligned with the SDGs, and dedicated to advancing the transition toward a low-carbon world.