Making climate finance work in agriculture
February 18, 2017 Editor 0
It’s widely recognized that agriculture can be part of the solution to climate change. The worldwide agriculture sector currently accounts for between 19 percent and 29 percent of total greenhouse gas (GHG) emissions. A combination of policies, investments and targeted action is critical to achieve a low-carbon and climate-resilient agriculture sector.
But the question arises: Where will the money to fund this transition come from? Can farmers alone finance the productivity and climate change adaptation and mitigation changes that are needed?
The vast majority of climate finance has traditionally flowed to other sectors, accentuating even more the shortfall in finance for agriculture.
Due to perceptions of low profitability, along with high actual and perceived risks, lenders often severely limit the flows of finance directed to smallholder farmers and small and medium-sized enterprises (SMEs) in agriculture. Without access to capital, farmers cannot invest in raising their productivity and incomes, becoming more resilient to climate change and mitigating their farms’ negative impact on climate.
But untapped sources of capital exist for making agriculture more climate-smart — namely, in climate finance. A recent World Bank discussion paper, Making Climate Finance Work in Agriculture, explores ways to use climate finance to dramatically increase the flows of capital directed to smallholder farmers and agricultural SMEs, aiming to deliver positive climate outcomes.
- Rabobank Foundation and the World Bank team up to strengthen financial cooperatives for agrifinance
- SMEs are good business for Kenya’s growing banking sector
- Financial inclusion of women in five charts
- Agriculture & food production contribute up to 29 percent of global greenhouse gas emissions
- Angel Investors as Startup Enablers in the Developing World
- Is Africa ready to climb the value chain in agriculture?
Categories: World Bank PSD
Tags: climate finance
Using a value chain approach to focus animal genetic interventions Spatial Growth Solutions, Multi-Stakeholder Engagement, and Fish: Innovative Public-Private Dialogue in Mauritania’s Nouadhibou Free Zone
Subscribe to our stories
- How Open Innovation Can Be Used in the Financial Sector July 23, 2017
- Nigeria: Nigeria Wins Global Government Innovation Award July 23, 2017
- L’entrepreneuriat demande de l’endurance: Comment un incubateur mauritanien appuie les entrepreneurs en herbe avec son concours « Marathon de l’Entrepreneur » July 23, 2017
- Ethiopia learning alliance to support sustainable agricultural intensification July 23, 2017
- Livestock key to ending poverty and hunger in developing countries July 23, 2017