Transitioning to a “green” economy in livestock: AFD requirements and strategic principles

Published 10.02.2026

The shift toward sustainable livestock models is increasingly driven by international financial institutions. Central to this transformation is the French Development Agency (AFD), which not only provides project financing but also defines the environmental and social benchmarks for their execution. These standards are designed to minimize ecological footprints, bolster agricultural resilience, and safeguard the long-term viability of investments.

Core AFD Requirements

The AFD’s strategic framework is built upon the following pillars:

1. ensuring full compliance with international standards throughout the project lifecycle;

2. reducing greenhouse gas emissions and deploying climate-resilient technologies to address environmental challenges;

3. implementing responsible stewardship of grazing lands and optimizing feed production systems;

4.  promoting the efficient conversion of manure and organic waste into value through composting and biogas initiatives;

5. establishing transparent monitoring, reporting, and verification (MRV) systems to evaluate environmental outcomes;

6. prioritizing the empowerment of local communities and providing robust support for smallholder farmers;

7. fostering accountable management practices to ensure the long-term impact and stability of projects.

Environmental and climate guidelines

AFD requires compliance with environmental and social standards during the implementation of agricultural projects. This includes assessing risks to water, soil, and biodiversity, as well as implementing measures for their protection. A key direction is the reduction of greenhouse gas emissions, increasing energy efficiency, and utilizing climate-resilient solutions. Projects must align with the goals of the Paris agreement.

Special importance is given to pasture management, sustainable fodder production, and preventing land degradation, which helps reduce the overall environmental footprint of livestock farming.

Resource management and performance monitoring

Particular attention is paid to the efficient handling of manure and waste, including composting and biogas production. Such solutions simultaneously reduce environmental pollution and create additional sources of energy and fertilizers for farms.

Monitoring environmental indicators via the MRV system (Measurement, reporting, and verification) is also a mandatory element. This allows for the evaluation of actual project results, including emission reductions, water savings, and pasture restoration, thereby increasing transparency and access to green financing.

Social responsibility and sustainable management

AFD emphasizes the importance of supporting local communities and small farmers, respecting land rights, and ensuring safe working conditions. Projects must be transparent, consider the views of stakeholders, and contribute to the long-term institutional sustainability of the sector. This approach reduces the risk of inefficient investments and strengthens the positive impact on rural development.

AFD requirements and principles form a comprehensive framework for the transition of livestock farming to a green economy. Compliance helps protect nature, increase the economic resilience of farms, and ensure socially responsible development of the industry, opening access to international support and new growth opportunities.