Member countries have been invited by the United Nations Framework Convention on Climate Change (UNFCCC) to communicate their Intended Nationally Determined Contributions (INDCs) to the mitigation of climate change, including plans for adaptation to the expected impacts of climate change. With Climate-Smart Agriculture (CSA) FAO proposes an approach that can support countries to fulfill their commitments put forward in INDCs and to implement climate change adaptation and mitigation action in the agricultural sectors through UNFCCC instruments, in particular NAMAs and NAPs.
International financing institutions
FAO engages with international financing institutions, such as the Green Climate Fund and the Global Environment Facility and supports countries to access funds for the implementation of CSA projects.
Since January 2015, FAO has been hosting the Facilitation Unit of the Global Alliance for Climate-Smart Agriculture (GACSA) which was launched on 23 September 2014 at the UN Climate Summit. FAO is a Co-Convener with CGIAR-CCAFS of the Knowledge Action Group in GACSA.
For many countries, learning how to access and effectively use international financing options represents the first step in the long-term transition towards climate-smart agriculture.
The current dynamics in international climate finance are in favour of CSA. There is potential for new and additional opportunities to use international financing for turning public and private agriculture investments into sustainable CSA investments.
While underdeveloped financing channels, like private sector investments or carbon markets, are likely to provide only limited financing for specific niches (e.g. manure management or product certification) in the midterm, bilateral as well as multilateral public financing is starting to put more explicit emphasis on CSA activities.