Evaluation of the impacts of Proparco’s Green Credit Lines on green growth and climate finance

In order to counteract climate change and contribute to the achievement of the Sustainable Development Goals (SDGs), the French development finance institution Proparco supports private actors in investing in environmental, renewable energy and energy efficiency projects. Since 2008, Proparco has aimed to encourage sustainable development in sectors such as infrastructure, manufacturing, finance and agriculture through financial intermediation. Within the scope of 14 green credit lines in Asia and Latin America, local financial institutions receive financial credits for climate-related development projects.

The overall objective of the study is to analyze the impacts of Proparco’s green credit lines and to draw strategic and operational lessons. In particular, it seeks to examine the extent to which Proparco’s support to local banks has resulted in the expansion of green lending and the provision of more appropriate credit forms to private actors willing to finance green investments. Thus, the study strives to provide Proparco with an assessment of its investments’ effects on green growth and climate finance in its countries of operation as well as with recommendations for future improvement.

adelphi, in cooperation with its partner Climate & Energy Solutions, is conducting an independent evaluation on the effects of Proparco’s portfolio of green credit lines. The study covers a comprehensive portfolio analysis based on data compilation of existing project documents as well as case studies in Turkey and Brazil to deepen the understanding of the current situation and the progress of green lending in specific regions. The credit lines are evaluated in accordance with the OECD-DAC evaluation criteria for development projects – addressing relevance, effectiveness, efficiency, impacts and sustainability – and an additional sixth criterion, Proparco’s added value. On the basis of the portfolio analysis and case studies, valuable insights and lessons learned will be drawn to enhance Proparco’s green projects financing and determine its added value to financial institutions.