Enhancing Climate Finance For Agrifood Systems Transformation: Unlocking New Opportunities For Asia-Pacific

9 September 2024, Bangkok, Thailand - Climate change presents severe challenges to agrifood systems across Asia and the Pacific, threatening food security, livelihoods, gender equality, and economic development. Rising temperatures, intensified droughts, and shifting rainfall patterns are increasing climate risks, such as inconsistent agricultural conditions and extreme weather events, which makes smallholder farmers particularly vulnerable.

Despite the critical importance of addressing the impacts, there is a significant gap in climate finance reaching smallholder farmers and agri-micro, small and medium enterprises (MSMEs). A 2023 FAO report reveals a dramatic 44 percent decline in climate-related development finance for agrifood systems in Asia in 2021 compared to the previous year. This shortfall hampers the ability of the vulnerable families and smallholder farmers to adapt and mitigate the effects of climate change. In Asia and the Pacific, countries such as Thailand, where agriculture contributes eight percent to the gross domestic product (GDP) and employs 18 million people or one-third of the workforce, the need for increased investment is pressing. Strengthening resilience for the agrifood system is crucial for safeguarding food security, supporting rural livelihoods, and promoting sustainable, climate-resilient and low-emission agricultural practices.

Thailand charts pathways for carbon-neutral and resilient agriculture

Thailand aims for carbon neutrality by 2050, in line with its Nationally Determined Contributions (NDCs) for 2030, and targets net-zero emissions by 2065. The country’s approach includes developing climate-resilient crops and sustainable agrifood systems. In August, the Food and Agriculture Organization of the United Nations (FAO), Thailand’s Ministry of Agriculture and Cooperatives, and the Ministry of Natural Resource and Environment, with support from the Green Climate Fund (GCF), brought together 40 stakeholders from the government, civil society, private sector, farmers, financial institutions, and academia. The workshop focused on refining strategies for climate investments, prioritizing six high-value crops such as cassava, durian, mango, sugarcane, rubber and oil palm tree. These strategies are designed to mitigate emissions and improve the livelihoods of smallholder farmers.

FAO’s Beau Damen, Natural Resources Officer-Climate Change and Climate Finance highlighted “With this consultation, we have taken important steps toward translating Thailand’s climate change priorities for agrifood systems into activities on the ground. FAO is committed to working with the Government of Thailand to develop these activities into climate finance initiatives and ensure no smallholder farmer is left behind.”

Bringing innovation and climate finance closer to farmers

Strategic foresight tools have led to a proposal to create agriculture hubs focused on developing and funding solutions that help communities to adapt to climate change. These hubs aim to enhance the resilience and sustainability of smallholder farmers and agrifood value chains by providing access to financial resources and promoting climate-smart agricultural technologies. Increased investment and adopting climate-smart solutions in agrifood systems can support rural communities by safeguarding their livelihoods against floods and droughts, which often result in crop losses, reduced productivity and lower incomes.

Boosting investment and adopting climate-smart solutions in agrifood systems can support rural communities by safeguarding their livelihoods against annual floods and droughts, which often result in crop losses, reduced productivity, and lower incomes.

In the Asia-Pacific region, FAO and its partners are focused on integrating climate-smart financing, advanced farming techniques, and practical training to help farmers adapt to changing climate conditions and promote a sustainable agrifood system. Increasing climate finance is crucial for creating opportunities that support growth and resilience. Through targeted investments and innovative approaches, the region can tackle climate challenges, enhance food security, and stimulate economic sustainability. This strategic approach will lead to significant progress in the agrifood sector, aligning with the FAO's 4 Better framework - better production, better nutrition, a better environment, and a better Life, leaving no one behind.

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