A recent report by the Food and Agriculture Organization of the United Nations (FAO) has highlighted a concerning decrease in the amount of climate finance directed towards agrifood systems. Despite the pivotal role that agrifood systems play in addressing climate change, the financial support in this area is diminishing, posing a significant challenge to the achievement of global climate goals.
Between 2000 and 2021, climate-related development financial support for agrifood systems amounted to $183 billion, with over half of the funding being delivered after 2016. However, the report notes that in 2021, contributions plummeted to $19 billion, representing a 12 percent decline from 2020. This decline was particularly pronounced in Asia, which experienced a sharp 44 percent decrease compared to the previous year.
The report also highlights an overall increasing trend in absolute terms but notes that the growth rate of climate-related development finance towards agrifood systems falls significantly short of the average growth rate observed in climate-related development finance overall. This is a concern, especially given the urgent need for more financing to help tackle the escalating impacts of climate change.
Deputy Director-General Maria Helena Semedo of the FAO stated, “The diminishing trends of both agrifood and adaptation investments is a missed opportunity to equip farmers around the world with the knowledge, the much-needed technologies and innovation to enhance their resilience and adapt to climate change impacts.”
The report emphasizes the pressing need for increased investments in sustainably-oriented agrifood systems practices, covering production, distribution, and consumption, as they have the potential to help nations adapt, build resilience, and decrease greenhouse gas emissions while ensuring food security and protecting biodiversity.
In 2021, bilateral resource providers were the primary contributors to climate-related development finance for agrifood systems, making up 59 percent, while multilateral providers contributed 35 percent, and the private sector a modest 5 percent. Sub-Saharan Africa was the primary recipient of financial support for climate-related initiatives in agrifood systems, securing 53 percent of these funds, primarily from bilateral donors.
Blended finance, which combines public and private funds to encourage climate-smart agricultural projects, is becoming increasingly popular. However, there is still a need to develop a more comprehensive and customized financing approach that responds to different regions and specific needs and priorities.
Moving forward, the report underscores the importance of understanding the most suitable financial instruments and the appropriate allocation of climate finance to different sectors. Additionally, the authors stress that strategic and targeted allocation of resources across various aspects of agrifood systems can significantly contribute to achieving climate change mitigation and adaptation goals while promoting sustainable food production and ensuring food security.
Given the urgency and critical need for finance for agrifood systems, FAO is taking action to address the financing gap through the Food and Agriculture for Sustainable Transformation Partnership (FAST Partnership). The FAST Partnership seeks to improve the quantity and quality of climate finance and ensure that climate investments reach the most vulnerable, particularly family farmers who often face the impacts of climate change.
In conclusion, there is an urgent need for increased investment in agrifood systems to address the challenges posed by climate change. The report by FAO serves as a stark reminder of the declining support for agrifood systems and the crucial need to reverse this trend to ensure a sustainable future for food production and climate resilience.
+ There are no comments
Add yours