Climate Change

Mainstreaming climate risks into climate finance

A key element required for a sustainable and transformational development in agriculture is ensuring that investments are informed by a robust evidence about past and future climate risks. Effective identification of hazards, exposure and vulnerabilities is required to inform the identification and appraisal of adaptation and mitigation practices. Mainstreaming climate risks into climate finance ensures that the linkages between climate impacts, climate actions and societal benefits are grounded in the best available climate data and science. 

An early identification and assessment of climate risks strengthens project proposals and enables fundamental decisions to be taken for more climate-resilient outcomes of investments. FAO’s Climate Risks team is working towards integrating climate risks throughout all stages of project cycle, including project design, appraisal and monitoring and evaluation of climate-related project results: 

Climate risk screening 

Climate risk screening is the initial step in a proactive process to ensure the impacts of extreme weather events and climate change and relevant resilience measures are mainstreamed throughout all projects and programmes. FAO's Climate Risks Team has developed a framework and screening process for the concept stage of FAO projects and programmes. The climate risk screening has been applied to the FAO- Global Environmental Facility (GEF-7) portfolio for all Project Identification Forms (PIFs) approved at the 2020 board. 

FAO's climate risk screening tool identifies short- and long-term risks posed by climate change and other natural hazards and supports project developers to ensure the comprehensive modulation of risk in project design.

The steps of the screening process include:


Based on the risk assessment, projects are classified as low, moderate, high and very high risk. Specific measures to manage or reduce climate risks are identified and recommended for the next stages of project design and implementation.

Building the Climate Rationale 

The climate rationale provides the scientific underpinning for evidence-based climate action decision making and the theory of change of the activities funded by climate finance. It ensures that the set of causal linkages between climate change and climate impacts and between action and societal benefits is fully grounded in the best available climate data and science concerning the most relevant climatic factors. The evidence-based approach also helps to delineate the value chain and the theory of change through which climate science, data and products inform decisions to effectively address the risks and adapt to a changing climate.