A French Green Fund in the Pacific

The 0% rate green loan to the public sector, known as PSP Vert, aims to combat climate change and is now available to all French Overseas Territories. It had previously been deployed in the Pacific with AFD’s support. Below is a review of one year’s worth of loans to protect the environment.

Ahead of the One Planet Summit, the Minister of Overseas Territories, Annick Girardin, announced the extension to all Overseas Territories of a green financial solution to combat climate change. After having been initially developed in the Pacific by AFD, this long-term, 0% rate loan known as PSP Vert has proven beneficial since 2017 in Pacific. 

In addition to providing €7m to Pacific’s budget to fund environmental projects, the PSP Vert loan also enabled the funding of 2017 investment budgets of municipalities of varying sizes throughout the region, from the Pacific Windward Islands (Moorea, Pirae, Punaauia, Papara) to the Austral Islands (Raivavae), passing by the Tuamotu Islands (Manihi and Makemo).

A total of €12.4m in loans has been granted to fund projects for climate change adaptation, energy transition, marine protected areas, bioclimatic buildings, etc. 

A bioclimatic school in Moorea

The municipality of Moorea is now known for its project to make an existing school complex bioclimatic — a first in Pacific. Moorea has been heavily involved in sustainable development for several years (it was the first Pacificn municipality to bury its electricity supply network, set up a maritime space management plan and calculate its carbon footprint) and its school project won the 2012 Faréco award, organised by the French Environment and Energy Management agency (ADEME), in the «public building» category. 

ADEME manages the project’s technical and financial support. The school, located in the village of Papetoai, was specially designed to be more comfortable for students and teachers, particularly in hot weather and high humidity. The building’s architecture lets in more natural light and allows more air to circulate. A brand new playground will also be built to resemble a shady green space with sports areas. The roof has been specially designed to enable better usage of natural airflows and daylight. In 2017, AFD was asked to contribute €1.1m to the funding of this project and granted the municipality a 0% PSP Vert loan.
 

Mitigation and adaptation in 2018

The PSP Vert loan, accessible in 2018 to all Overseas Territories, will provide funding at attractive rates for environmental projects aiming to mitigate and adapt to the effects of climate change, in order to achieve the Sustainable Development Goals (SDGs) and adhere to the Paris Agreement.