A development finance institution which operates on behalf of the French government with the objective of assisting overseas development. Its areas of focus include the reduction of poverty and inequality, promoting sustainable economic growth, and protecting 'Global Public Goods' from the dangers of climate change. AFD targets its funding towards micro, small and medium-sized enterprise, public budget support, infrastructure construction, urban and rural development, health and education, war and disaster relief, social cohesion and environmental responsibility, research and training, technical assistance and capacity building.  

Its energy sector strategy is based upon three key objectives: 

• supporting low-carbon economic growth through the use of renewable energy, the improvement of energy efficiency, and demand management.
• providing universal access to modern and reliable forms of energy.
• developing competitive and secure energy systems.

The AFD also recognises the barriers in financing sustainable energy and how different mechanisms can help to overcome them. Something which they have highlighted in particular is the problem of subsidised fossil fuels making renewable energy less feasible, and they therefore attempt to target financing for sustainable energy towards problem areas where electricity is cheap and based predominantly on fossil fuels.

Development assistance projects in areas such as agriculture and rural development, urban development, water management, education, healthcare, post-crisis aid and reconstruction, private sector energy, environmental protection and sustainable resource management.

Energy projects underway in 2009 include the construction of small scale hydroelectric power plants in China and the supporting of Turkish companies in energy management and depollution strategies.