Ten years after the Paris Agreement and with COP30 approaching, Proparco is launching the “Proparco Days,” a forum bringing together financial actors from the Global North and South to focus on climate finance. In this exclusive interview with Ecofin Agency, CEO Françoise Lombard outlined the initiative’s goals and stressed the catalytic role Proparco and other development finance institutions can play in accelerating green finance, particularly in Africa.

Ecofin Agency: What specific needs are the “Proparco Days” designed to address? And why did you choose a format based on small-group discussions to encourage what you call the ‘strategic exchanges’ on climate finance?

Françoise Lombard: First, I should clarify that this is the first edition of Proparco Days in this format. Proparco often facilitates peer-to-peer exchanges, but usually at the regional level in the geographies where we operate. This is the first time we are hosting the event in Paris, bringing together clients from around the world under a single theme: climate finance.

For this edition, we invited only clients from the financial sector—banks and investment funds—even though we also finance businesses and infrastructure projects directly. The idea was to create a global dialogue on specific climate issues, such as SME financing or e-mobility. The purpose is to foster peer-to-peer learning, so institutions can draw inspiration from solutions being implemented in Africa, Asia or Latin America. That is the core of this gathering.

The focus on climate finance is intentional. Proparco, along with our parent company AFD, has been committed to this issue for many years. We were the first development bank to align 100% with the Paris Agreement. This event is both a way to celebrate that commitment and to remain focused on practical solutions for our clients, who are at the heart of what we do.

We were the first development bank to align 100% with the Paris Agreement. This event is both a way to celebrate that commitment and to remain focused on practical solutions for our clients, who are at the heart of what we do.

Finally, the timing matters. Climate finance has lost some momentum recently. With this event, we want to show that, beyond high-level announcements, climate finance remains a tangible reality and a top priority for emerging and developing economies.

What concrete outcomes did you expect from this event, especially for SMEs or for high-pollution sectors in Africa like mobility? And what do you hope your clients will take away from these exchanges?

We approached Proparco Days with humility. The main goal was to bring our clients from around the world together—so they could connect, learn from one another, and build relationships that might continue afterward. We wanted them to share not only what has worked, but also what hasn’t, so they can see how peers in other regions are approaching similar challenges.

Much of this centers on how to deliver green financing to SMEs. We’re interested in the risks involved, the impact on a bank’s balance sheet, the financing maturities that were used, the products developed, the marketing strategies that helped attract clients, and the financial terms applied. Sharing this level of detail allows our clients to adopt a genuine best-practices approach. Successes matter, but failures are equally important to learn from.

There’s also value in sharing a broader market assessment. Contexts differ across regions, but there is clear consensus on the potential to expand green finance.

Finally, we always intended to tackle green finance in two dimensions: looking at the opportunities it creates, and at the risks that need to be avoided or managed. Both perspectives are essential if we want to move forward effectively.

Participants also include insurance groups and investment funds—partners Proparco already works with in Africa. Ten years after the Paris Agreement, Africa still receives only 3% of global green finance flows, most of it in the form of debt. What joint actions are you taking, or planning, to help close this gap in green finance on the continent?

You’re absolutely right. The continent still receives far too little funding to meet its energy needs, especially for clean energy. We’re tackling this on several fronts.

Across the board, DFIs have made climate finance a strategic priority. Today, around 30% to 50% of their activity is dedicated to this. That’s significant, but still not enough.

First, there are the initiatives led by Development Finance Institutions (DFIs). These institutions have expanded significantly, Proparco has grown, and as you mentioned, the IFC now mobilizes very large volumes of financing each year. Across the board, DFIs have made climate finance a strategic priority. Today, around 30% to 50% of their activity is dedicated to this. That’s significant, but still not enough.

Second, we are prioritizing support for local financial institutions, because they are best placed to channel capital into green and low-carbon projects. This was the focus of the opening session at Proparco Days: showing how African financial actors can drive change. It’s not only about their commitment, but also their ability to influence clients’ choices; by asking the right questions and encouraging them to integrate climate criteria into their investments. That’s the logic behind all our support for local players.

At Proparco, we’ve set ourselves a goal: to mobilize one euro of private finance for every euro we commit from our balance sheet. It’s ambitious but realistic, because we know there’s appetite, and DFIs can de-risk investments. Blended finance helps lower perceived risks for private investors.

Third, mobilizing more private finance is crucial. Here too, DFIs have a catalytic role. At Proparco, we’ve set ourselves a goal: to mobilize one euro of private finance for every euro we commit from our balance sheet. It’s ambitious but realistic, because we know there’s appetite, and DFIs can de-risk investments. Blended finance helps lower perceived risks for private investors. We can also act as an anchor investor: for example, committing early to a green bond issue, which sends a strong signal to the market and builds credibility for the issuer. That catalytic presence is essential.

Finally, we need to mobilize local institutional investors, pension funds, provident funds and other long-term players. Encouragingly, we’re starting to see movement here. These actors are increasingly ready not only to lend, but to invest directly and locally in green projects. And that is exactly what Africa needs.

Proparco has been very active on green finance. Do you see yourselves as a leader with an influential voice on issues such as resilient agriculture or electric mobility?

Proparco, together with our parent organization AFD, has built strong credibility in climate finance. And when we talk about climate finance, it spans every sector—no part of the economy is untouched by it.

This credibility comes from an early commitment—well before other development finance institutions—to align all our projects with the Paris Agreement, using robust methods to assess that alignment. We also set early targets for financing projects with climate co-benefits, whether for mitigation or adaptation. We remain proactive and pioneering in this area, especially through very rigorous methodologies for measuring the carbon footprint of our projects.

In fact, we are among the few DFIs that go as far as Scope 3 emissions in our carbon evaluations, and that strengthens our credibility. The challenge now is to use that credibility to work at greater scale—for example, by building coalitions of actors around concrete projects.

Take the case of Ecobank, a pan-African bank present in over 30 countries. We brought together a coalition of financial partners to mobilize $200 million through a Sustainability-Linked Loan (SLL).

Take the case of Ecobank, a pan-African bank present in over 30 countries. We brought together a coalition of financial partners to mobilize $200 million through a Sustainability-Linked Loan (SLL). The loan was tied to climate strategy indicators. Instead of earmarking credit lines for individual green projects, the aim was to work with the institution itself to create broader, transformational impact.

In practice, that meant helping Ecobank identify climate projects, ensuring its credit process integrates climate criteria, supporting it in assessing the carbon footprint of its balance sheet, setting emission-reduction targets, and making those targets public. Thanks to the SLL, Ecobank committed to this transformational shift. I believe this example shows how Proparco is now leveraging its credibility to drive structural and lasting impact.

Proparco says it has committed €960 million to support SDG 13 on Climate Action. What share of this comes as loans versus equity?

We believe every financial instrument needs to be mobilized to meet the climate challenge. That includes equity and, above all, long-term loans, because climate action requires a long-term horizon. That’s one of Proparco’s strengths—we can finance projects over extended periods. Guarantee products are also highly relevant, especially for banks, because they help expand risk appetite by allowing us to share part of the risk, for example on non-performing loans. The key is to ensure that each tool is well targeted.

Proparco is primarily a lending institution, but we also manage an equity portfolio valued between €1.5 billion and €1.7 billion (depending on euro-dollar parity), and we’re actively expanding it. As part of our five-year strategy, we’ve set a target of €450 million in annual equity activity starting next year. That represents a major commitment for Proparco’s balance sheet.

As part of our five-year strategy, we’ve set a target of €450 million in annual equity activity starting next year. That represents a major commitment for Proparco’s balance sheet.

In equity, our activity in Africa is larger than in all other global regions combined. Over the years, we’ve built a strong network of relationships that helps us identify projects requiring patient capital. We also back African investment funds, because we believe these local players will have the biggest long-term impact. To reinforce this, we launched the Fellowship Program, a training initiative for African private equity professionals run with local funds. Our presence in African private equity is substantial.

We also back African investment funds, because we believe these local players will have the biggest long-term impact.

We also invest directly in venture capital, providing €30 million to €40 million annually to African startups—a significant amount given the tough fundraising environment. Finally, through our subsidiary Digital Africa, we support very early-stage ventures with tickets ranging from €300 to €100,000.

Interview by Idriss LInge,

Adapted in English by Mouka Mezonlin