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Green finance as a critical lever for delivering sustainable agrifood systems – A global landscape study









Das, P.K. & Cungu, A. 2023. Green finance as a critical lever for delivering sustainable agrifood systems – A global landscape study. Rome, FAO.




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    Evaluation of FAO’s support to climate action (SDG 13) and the implementation of the FAO Strategy on Climate Change (2017) 2021
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    This evaluation assesses the extent to which FAO adopted an effective, coherent and transformative approach to its work on climate action from 2015 to 2020, by contributing to the achievement of SDG 13 targets and the Paris Agreement. The methodology included portfolio analysis, quantitative content analysis of over 500 documents, participatory stakeholder workshops, desk reviews, interviews with 488 stakeholders, analysis of key FAO products, 3 global surveys, and 13 country case studies. The evaluation’s findings are (i) FAO’s Strategic Framework is aligned with SDG 13 and the Paris Agreement. However, FAO has not expressed a long-term vision on its leadership role in agriculture for climate action; nor does FAO governance yet reflect a clear and strategic focus on its mission on climate action; (ii) The 2017 Climate Change Strategy has effectively supported FAO’s work, but it is not fully integrated into corporate decision-making; (iii) FAO has made relevant contributions by supporting national capacity building for climate action; (iv) FAO’s contributions to SDG 13 and the uptake of products and tools are not systematically monitored and reported; (v) There is little alignment of portfolios between divisions and no systematic approach to trade-offs. Consequently, the root causes of climate change on agriculture are not being addressed in an integrated way; (vi) FAO has strong capacity, but the current business model results in uneven distribution of human and financial resources and in fragmented, short-term projects reach; (vii) FAO contributed to climate adaptation and mitigation by collaborating with Members and other partners, although it has engaged less in innovative partnerships with the private sector, financing institutions and civil society; (viii) FAO has progressed on the inclusion of gender-specific climate action initiatives. The recommendations of the evaluation include developing a corporate narrative on climate change and food systems; formulating a new Climate Change Strategy and action plan; improving the climate change labelling of its project portfolio; mainstreaming climate action into all offices, divisions and levels, and including coordination and guidance to embed procedures in the project cycle, quality assurance and learning mechanisms; adopting a climate action-focused programmatic approach; running an assessment to identify capacity gaps, needs and opportunities and, accordingly, strengthening the capacity of staffing, funding and inter-office communication; enhancing its partnerships and seeking out innovative partnerships; and mainstreaming the core “leave no one behind” by including women, youth, the extreme poor, indigenous peoples and other vulnerable groups.
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    Unlocking finance for water and agriculture: Volume 1 2023
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    The Global Framework on Water Scarcity in Agriculture (WASAG) is a partnership established in April 2017 and hosted by FAO, regrouping more than 70 organisations that aim to generate cooperative action to address the challenges associated with increasing water scarcity. Its purpose is to deliver and support a work programme on water resources management and its role in drought preparedness, food security and nutrition, migrations and social stability, that are an increasing concern to societies in many regions of the world. WASAG established six working groups, which are led by its partners. This paper emanates from the working group on financing mechanisms, which aims to identify innovative financial mechanisms for interventions dealing with water scarcity in agriculture in the context of climate change. The working group supports new approaches to finance water for agriculture, that will inform the work undertaken by other WASAG working groups and Partners to ensure an aligned approach across WASAG projects and activities.
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    Linking agrifood SMEs to innovation for sustainable food systems: the role of multi-stakeholder approaches
    Webinar outcomes
    2023
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    During this webinar, organized by the SFS-MED Platform and held on 13 October 2022, stakeholders from across the Mediterranean shared practical experiences of university-business cooperation, successful cases of innovation adoption and transfer, innovative pathways of capacity development, as well as provocative thoughts from investors and farmers. Panelists and speakers discussed about the needs and challenges that agrifood SMEs and farmers are experiencing in linking with innovation, and investigated possible pathways for transformation, leveraging the added value of multi-stakeholder approaches to promote the uptake of innovation. Moreover, the webinar allowed strengthening collaboration among the different partners and stakeholders shaping the agrifood ecosystem, that are essential to enable SMEs and farmers with solutions, tools and best practices. The discussion was instrumental in demonstrating that linking agrifood SMEs to innovation is key for a sustainable future of the Mediterranean food systems, where SMEs and small-scale producers are empowered as economic actors and agents of change for a blue, green and circular food system transition. There is a need for an interactive innovation ecosystem based on a multi-stakeholder collaboration process that is open and inclusive, where new technologies and organizational processes are co-designed by all food systems actors. To this effect, science diplomacy is a powerful tool to ensure that scientific knowledge is effectively shared and adequately translated to be used by non-scientific stakeholders, leveraging co-creation and win-win solutions through alliances that engage all shores of the Mediterranean on a level-playing field. Moreover, innovative capacity building and training programmes are instrumental in developing the human capital necessary to address skills mismatch between graduates and employment demand from the agri-business sector, enhancing the innovation chain through new professional profiles. Finally, sustainable finance and new financial mechanisms can be unlocked to enhance SME access to affordable innovation and technology. Business incubators and accelerators promote a change of mindset that can lead SMEs to embrace innovation by adopting new business models, matchmaking innovators and co-founders, and inspiring ideas.

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