Public Climate Finance for Food Systems Transformation

05 November 2024

The 2024 update on the report, Climate Finance for Food Systems, reveals a declining share of funding and urgent investment needs to drive sustainable transformation.

Climate Finance

|

Climate Action

|

Type

Areas of focus

Photo credit: IKEA Foundation, Kilimo Trust & ICIPE (Kenya)

Photo credit: IKEA Foundation, Kilimo Trust & ICIPE (Kenya)

In 2022, the Global Alliance released a report uncovering a critical gap in climate finance for food systems. Food systems are responsible for one-third of global greenhouse gas emissions and the climate crisis disproportionately impacts smallholder farmers, fishers, pastoralists, and Indigenous Peoples who are on the frontlines of the crisis. But only a small fraction of climate finance—less than 3%—was being allocated to fix food systems. This gap highlighted an urgent need to put food systems at the center of climate action and climate funding.

This 2024 update of Public Climate Finance for Food Systems Transformation shows that despite an overall increase in climate finance between 2017 and 2022, the portion of funding for food systems has slipped further, down from 3% to 2.5%, and even further when we consider sustainable food systems, at just 1.5%. This report underscores the urgent need to significantly boost climate finance for sustainable food systems and calls attention to the need for funding to reach communities.

Read the report

Key Insights

Even as overall public climate finance has increased between 2017 and 2022, the portion going towards food systems has fallen from 3% to 2.5% during this time. Furthermore, public climate finance towards sustainable food systems is even smaller at just 1.5% This calls for an urgent scaling up of public funding to address the impacts of the climate crisis on frontline communities and to tackle emissions from food systems which are contributing to climate chaos. 

Read the report
Photo credit: SELCO Foundation & IKEA Foundation (Global Alliance Member)

Photo credit: SELCO Foundation & IKEA Foundation (Global Alliance Member)

Declining Climate Finance for Food Systems

  • Public climate finance nearly doubled from USD 321 billion (2017) to USD 640 billion (2022), yet the portion of climate finance for food systems fell from 3% (see our 2022 report) to 2.5% during the same period.
  • Funding for sustainable food systems is even lower, at just 1.5%.
  • Of the USD 16.3 billion allocated to food systems, only USD 9.1 billion was considered sustainable.

The True Cost of Industrial Food Systems

  • The hidden costs of our current industrial food systems are approximately USD 12 trillion annually, according to the latest FAO report.
  • Food systems account for 15% of global fossil fuel use.
Locally weaved baskets are used to harvest organic cacao. Photo credit: Murray Cooper

Locally weaved baskets are used to harvest organic cacao. Photo credit: Murray Cooper

The Need for Urgent Investment

  • The cost to transition to sustainable food systems is estimated at USD 500 billion per year, far exceeding current allocations.
  • Harmful agricultural subsidies amount to USD 670 billion per year and must be redirected toward sustainable solutions.
  • Updated 2025 Nationally Determined Contributions (NDCs) must include clear food system transformation plans to mobilize climate finance.

Unlocking Climate Solutions and Economic Benefits

  • Climate finance must increase tenfold and flow directly to underfunded solutions and frontline communities.
  • Investment is needed across the entire food system, including:
    • Sustainable agricultural practices
    • Small-scale producer resilience
    • Healthier diets and reduced food waste
    • Inclusive and equitable governance
  • Transforming food systems could generate USD 5 trillion per year in economic benefits while reducing emissions, protecting biodiversity, and improving global food security.
Read the report
Global Alliance For The Future Of Food
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.