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Mobilizing investment in the development of the agriculture sectors

The agriculture sectors continue to receive only a modest share of international climate finance, estimated at around USD 4 billion in 2014. Financing flows need to reflect the importance that developing countries assign to adaptation and agriculture.

FAO helps countries to mobilize financing, use domestic expenditure more effectively and overcome the barriers that inhibit private investment in sustainable, climate-smart agricultural development. 

 

 

 

Global Environment Facility (GEF)

Global Environment Facility (GEF)

FAO helps countries to mobilize financing from the Global Environment Facility (GEF). Through two financing mechanisms operated by GEF, the Least Developed Countries Fund (LDCF) and the Special Climate Change Fund (SCCF), FAO has built a portfolio of programmes and projects that have directed over USD 600 million in support to countries.

Green Climate Fund (GCF)

Green Climate Fund (GCF)

FAO is accredited to the Green Climate Fund (GCF) to manage medium-sized projects (USD 50-250 million) and is assisting countries in utilizing the resources available through the GCF Readiness and Preparatory Support Programme.

The GCF has defined priority result areas that are in line with the mandate and work of FAO, including reducing emissions from deforestation and land use, and enhancing the resilience of people’s livelihoods and food security. FAO is now scaling up country support to work with the GCF to drive transformational change in the agriculture sectors.

FAO can also access funds under the Capacity Building Initiative for Transparency, a new fund dedicated to building national capacities to report against NDC targets in a manner that is consistent with the evolving rules of the Paris Agreement Enhanced Transparency Framework. 

Private sector investment

Private sector investment

FAO support can be vital to overcoming the barriers that inhibit private investment in sustainable, climate-smart agricultural development. The Organization’s technical expertise serves to create an enabling environment that provides incentives for investment, particularly by smallholder producers. The FAO Investment Centre supports international financial institutions in shaping their investment portfolios, with much of this investment being harnessed to drive agricultural development in direct collaboration with smallholder producers.

Global Agenda for Sustainable Livestock

Global Agenda for Sustainable Livestock

Under the Global Agenda for Sustainable Livestock, a multi-stakeholder partnership, FAO is collaborating in the development of investment guidance that can be used to tap into donor funding and multilateral lending schemes, such as those offered by the World Bank. For instance, the European Bank for Reconstruction and Development.

Investment in the forestry sector

Investment in the forestry sector

Building on its experience working with Forest Law Enforcement, Governance and Trade (FLEGT), the Forest and Farm Facility and forest industries, FAO also is ready to support countries in encouraging the private sector – large and medium enterprises as well as smallholder producers - to engage and invest in REDD+ activities.

National public sector investment

National public sector investment

National public investment plays an important role in driving sustainable, climate-smart agricultural development. To ensure the best possible use of existing resources, the capacity of developing countries’ must be developed to track how much of their national budgets are being allocated to respond to climate change, where and how these resources are being allocated, and how effective they are in achieving their objectives.