Untapped Opportunities: Climate Financing for Food Systems Transformation (2022)

24 October 2022

A comprehensive report on increasing climate finance for food systems transformation, highlighting key gaps, investment needs, and policy recommendations.

Climate Finance

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Climate Action

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Type

Areas of focus

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A local farmer brings his cacao in to be weighed for export. Photo Credit: Murray Cooper

A local farmer brings his cacao in to be weighed for export. Photo Credit: Murray Cooper

Despite their major role in climate change, food systems receive only 3% of public climate finance, creating a critical funding gap. If we are to meet the 1.5°C target of the Paris Agreement, significantly increasing climate finance for food systems transformation is essential.

Key Facts:
  • Halting all non-food-related emissions still won’t be enough to meet global climate goals—food systems alone could exceed the emissions limit in the next 40 years.
  • $300–350 billion per year is needed through 2030 to transform food systems sustainably, yet only $9.3 billion per year has been allocated over the past five years.
  • 70% of NDCs lack sufficient detail on climate finance needs for food systems, making it harder to mobilize funding.
  • A staggering 86.4% of public finance for agriculture supports activities that harm climate, biodiversity, and health—this is 57 times more than the climate finance provided for food systems.
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Key Insights

Nairobi, Kenya - Ripe fruits stacked at a local fruit and vegetable market on February 6, 2014. Nairobi, Kenya. The market is frequently visited by locals and tourists.

Nairobi, Kenya – Ripe fruits stacked at a local fruit and vegetable market on February 6, 2014. Nairobi, Kenya. The market is frequently visited by locals and tourists.

To bridge the finance gap and drive food systems transformation, this report provides key recommendations:

  1. Align public financial flows with climate goals: Governments must integrate food systems into their Nationally Determined Contributions (NDCs) and climate policies.
  2. Increase climate finance for food systems: Developed countries should significantly expand funding for sustainable agriculture, food distribution, and waste reduction.
  3. Redirect harmful agricultural subsidies: Redirect the $611 billion in annual public agricultural support to sustainable food systems initiatives.
  4. Strengthen food systems funding in NDCs: Developing countries should include detailed food systems investment needs to attract climate finance.
  5. Leverage COP negotiations: With COP27 focusing on agriculture, food, nutrition, and finance, now is the time to prioritize food systems in the global climate agenda.

Investing in sustainable food systems is a cost-effective climate solution, capable of delivering significant emissions reductions and co-benefits for biodiversity, public health, and economic resilience. Public and private sector collaboration is essential to accelerate funding flows and achieve climate targets.

 

Read the report
Global Alliance For The Future Of Food
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