The French Development Agency (AFD) funds, supports and accelerates transitions to a fairer and more sustainable world. Enerdata was selected by this Agency to propose a methodology for quantifying the climate benefits of construction and renovation projects.
The benchmarking of existing methodologies among International Financial Institutions (IFIs) enabled us to identify which sustainability criteria could guide the allocation of their funds.
Based on this critical evaluation, Enerdata created a new methodology entirely customised for the AFD and issued recommendations on how to place energy efficiency at the centre of its strategy.
As our climate changes, so does the fund allocation strategy of International Financial Institutions (IFIs) who are committed to social, economic, and environmental progress around the world. In line with the Paris Agreement, IFIs are increasingly adopting energy and climate objectives, with efficiency as a top priority.
In this context, AFD needed recommendations to enhance and accelerate the development of energy efficiency projects, and to overcome several obstacles.
Firstly, AFD sought to increase the skills of its teams in understanding the concept of energy efficiency in buildings: what it means, how it is calculated, which dimensions are considered, etc.
Secondly, Enerdata and AFD conducted in-depth methodological investigations (to define a reference situation to evaluate the energy efficiency of new building projects, to determine how to account for small-scale projects, and more).
- Enerdata leveraged its leading expertise in energy efficiency and demand to analyse the funding criteria selected by IFIs, and issue recommendations for maximising the impact of energy efficiency in the achievement of energy and climate targets.
- Enerdata’s ability to produce and analyse data and forecasts sorted by country, by sector, industrial branch and end-use – all available in our Information Services – allowed our experts to make precise recommendations for AFD in the buildings sector, in all stages down to construction and renovation processes.
- Enerdata interviewed many experts from IFIs around the world, requiring both the structure provided by interview guides, and the adaptability allowed by the soft skills of our teams who are used to working in international environments.
- Benchmarking of methodologies among selected IFIs and development of a new approach for AFD
- Comprehensive literature review
- Series of interviews with experts from IFIs
- International Bank for Reconstruction and Development, European Investment Bank, World Bank, African Development Bank, KfW Bankengruppe…
- Analysis of energy efficiency strategies and objectives announced by IFIs
- Typology of realised projects
- Critical evaluation of results and trends
- Development of a new methodology for evaluating the impact of energy efficiency in climate objectives, fitted to the needs of AFD
- Synthesis and evaluation of best practices
- Recommendations for AFD and transversal works by IFIs, following four axes:
- Eligibility of energy efficiency projects
- Methods to estimate the energy gains achieved by energy efficiency projects in the buildings sector
- Accounting for climate finance, with energy efficiency criteria to determine fund allocation
- Financing conditions for construction works, including compliance documents and performance evaluation
- Presentation of the benchmarking methodology
- List of recommendations for improving energy efficiency in the building sector through financing by AFD and other IFIs