Making Climate Finance Work in Agriculture
This discussion paper was produced as a background documentfor the 2016 FAO State of Food and Agriculture (SOFA) report. It was produced through desk research and analysis of existing agricultural and climate finance literature. Moreover, qualitati...
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| Format: | Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2016
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| Online Access: | http://documents.worldbank.org/curated/en/986961467721999165/Making-climate-finance-work-in-agriculture http://hdl.handle.net/10986/25366 |
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okr-10986-253662021-05-25T09:51:52Z Making Climate Finance Work in Agriculture World Bank Group climate change climate-smart agriculture climate finance agricultural finance This discussion paper was produced as a background documentfor the 2016 FAO State of Food and Agriculture (SOFA) report. It was produced through desk research and analysis of existing agricultural and climate finance literature. Moreover, qualitative interviews with key experts representing different stakeholder groups in the agriculture, climate, and financial sectors were conducted to inform the potential opportunities and innovations that should be further explored to make climate finance work for agriculture. Finally, a collection of supporting case studies were provided by different stakeholders to showcase some of the most successful and innovative examples already being implemented in the climate finance community.It is important to note that this is a discussion paper that aims to explore the intersection between climate and agriculture finance by generating dialogue. Hence, the paper explores a relatively new field and proposes innovative interventions that either are being tested or could be tested to increase the leverage of private capital and strengthen the links between financial institutions on the one hand and smallholder farmers and SMEs on the other. The objective of the paper is to generate discussion around this topic and, therefore, no blanket recommendations or descriptive interventions are proposed. A growing population and changing diets are driving up the demand for food. Production is struggling to keep up as crop yields level off in many parts of the world, ocean health declines, and natural resources— including soils, water and biodiversity—are stretched dangerously thin. Climate change is critically interrelated with agriculture. On the one hand, agriculture is extremely vulnerable to climate change. This paper proposes three different avenues to use climate finance to achieve this goal: a) Designing and adapting innovative mechanisms to leverage additional sources of capital, from both public and private sources, that can be directed towards climate smartinvestments in the agriculture sector. b) Identifying entry points for directing climate finance into agriculture and for linking FIs to smallholders and agricultural SMEs, including through capacity building and technical assistance. c) Providing technical assistance to increase investments in agriculture. Finally, this paper presents several suggestions to contribute to the achievement of the ideas presented in this paper, including the need for increased knowledge on innovative financial instruments and mechanisms, bridging information gaps, identifying opportunities, promoting dialogue and cooperation, and designing an action plan to move this agenda forward. 2016-11-16T23:17:47Z 2016-11-16T23:17:47Z 2016-06 Working Paper http://documents.worldbank.org/curated/en/986961467721999165/Making-climate-finance-work-in-agriculture http://hdl.handle.net/10986/25366 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Working Paper Publications & Research |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
climate change climate-smart agriculture climate finance agricultural finance |
| spellingShingle |
climate change climate-smart agriculture climate finance agricultural finance World Bank Group Making Climate Finance Work in Agriculture |
| description |
This discussion paper was produced as a
background documentfor the 2016 FAO State of Food and
Agriculture (SOFA) report. It was produced through desk
research and analysis of existing agricultural and climate
finance literature. Moreover, qualitative interviews with
key experts representing different stakeholder groups in the
agriculture, climate, and financial sectors were conducted
to inform the potential opportunities and innovations that
should be further explored to make climate finance work for
agriculture. Finally, a collection of supporting case
studies were provided by different stakeholders to showcase
some of the most successful and innovative examples already
being implemented in the climate finance community.It is
important to note that this is a discussion paper that aims
to explore the intersection between climate and agriculture
finance by generating dialogue. Hence, the paper explores a
relatively new field and proposes innovative interventions
that either are being tested or could be tested to increase
the leverage of private capital and strengthen the links
between financial institutions on the one hand and
smallholder farmers and SMEs on the other. The objective of
the paper is to generate discussion around this topic and,
therefore, no blanket recommendations or descriptive
interventions are proposed. A growing population and
changing diets are driving up the demand for food.
Production is struggling to keep up as crop yields level off
in many parts of the world, ocean health declines, and
natural resources— including soils, water and
biodiversity—are stretched dangerously thin. Climate change
is critically interrelated with agriculture. On the one
hand, agriculture is extremely vulnerable to climate change.
This paper proposes three different avenues to use climate
finance to achieve this goal: a) Designing and adapting
innovative mechanisms to leverage additional sources of
capital, from both public and private sources, that can be
directed towards climate smartinvestments in the agriculture
sector. b) Identifying entry points for directing climate
finance into agriculture and for linking FIs to smallholders
and agricultural SMEs, including through capacity building
and technical assistance. c) Providing technical assistance
to increase investments in agriculture. Finally, this paper
presents several suggestions to contribute to the
achievement of the ideas presented in this paper, including
the need for increased knowledge on innovative financial
instruments and mechanisms, bridging information gaps,
identifying opportunities, promoting dialogue and
cooperation, and designing an action plan to move this
agenda forward. |
| format |
Working Paper |
| author |
World Bank Group |
| author_facet |
World Bank Group |
| author_sort |
World Bank Group |
| title |
Making Climate Finance Work in Agriculture |
| title_short |
Making Climate Finance Work in Agriculture |
| title_full |
Making Climate Finance Work in Agriculture |
| title_fullStr |
Making Climate Finance Work in Agriculture |
| title_full_unstemmed |
Making Climate Finance Work in Agriculture |
| title_sort |
making climate finance work in agriculture |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/986961467721999165/Making-climate-finance-work-in-agriculture http://hdl.handle.net/10986/25366 |
| _version_ |
1764459029832138752 |