FAO hosts webinar on mainstreaming climate risk management in agricultural finance
Investors considering climate change projects have found the lack of both global standards and the systematic use of climate change data and information to be major obstacles to informed decision-making.
The FAO webinar on mainstreaming climate risk management in agricultural finance took place on 9th December 2020, gathering international experts to discuss how multilateral institutions are developing climate resilience policies, strategies and projects.
The online event was opened by Eduardo Mansur, Director of FAO’s Office of Climate Change, Biodiversity and Environment and Jo Puri, Divisional Director at IFAD’s Division of Environment, Climate, Nutrition, Gender, Youth and Social Inclusion.
“In order to build sustainable and resilient agri-food systems, it is crucial to guarantee that agricultural investments are advised by robust evidence-based prognostics on existing climate risks and potential impacts, which implies addressing both short-term weather-related disasters and the long-term consequences”, emphasized Mr. Mansur in his opening remarks.
Webinar outcomes
Rosina Bierbaum of the Global Environment Facility, Maxx Dilley of the World Meteorological Organization, and Ioannis Vasileiou from the World Bank presented lessons learnt in climate change mainstreaming in projects and programs implemented by their institutions.
They emphasized that early engagement with project stakeholders guarantees the successful integration of climate change risks into policy and investment planning. Besides that, knowledgeable climate and disaster risk screening procedures, reviewed along with all project stakeholders, will enhance the longer-term sustainability of investments.
Investors have to keep in mind that resilience tools and indicators need to be selected carefully since climate action is a context-specific science:technologies said to be climate-smart vary considerably across regions, reflecting diverse opportunities, constraints, vulnerabilities, and characteristics according to the agriculture sectors in different parts of the world.
Another barrier to adopting climate-smart practices and technologies was described as the lack of knowledge dissemination and capacity building training provided to stakeholders.
In addition, fit for purpose, financial support to operationalize and scale up climate services in agriculture, particularly in developing countries is needed urgently. Overcoming the ’last mile’ barrier, which means ensuring that climate data and information reaches individual farmers, can only be achieved through multi-stakeholder governance and partnerships starting from national and sub-national levels up to the global level.
A systematic approach
“A systematic approach is fundamental to ensure climate change is considered from the earliest stages of project design and effectively incorporated into all FAO investments.” explained Ana Heureux who shared FAO’s experiences and her team’s progress on climate risk screening assessments, tools and indicators across the FAO-GEF portfolio.
Annett Moehner of the UNFCCC secretariat, Adaptation programme added that “risk and vulnerability assessment is too often tied to certain projects or national reports and needs to be more institutionalized across different sectors and levels of governance”.
The digital revolution
In conclusion, the webinar moderator Lev Neretin from FAO emphasised the significance of the digital revolution and how high-technology tools for farmers should be ‘harnessed’ to effectively mainstream climate risk management investments in agriculture.
As part of the COVID-19 pandemic global recovery, it is now crucial to turn theory into action, to build back greener while assessing and accounting for climate risks in agri-food systems.
Learn more
FAO webpage: Climate Risk Management
Briefing note: Using climate services in adaptation planning for the agriculture sectors