FAO.org

Energy is needed at every stage of agrifood systems.  Producing the world’s food and getting it from farm to fork comprises about 30 percent of all energy consumed, and over a third of greenhouse gas (GHG) emissions from agrifood systems are the result of energy use. Our agrifood systems need to be transformed to make them more efficient, sustainable and resilient, with a view to be able to feed a global population of almost 10 billion by 2050 while not exceeding the 1.5 degrees threshold of global warming. A radical transformation in how food is produced, processed, traded and consumed is required and this must occur with the full recognition that decarbonization by mid-century is simply not possible without investing in agrifood system transformation, including in the energy used in agrifood systems. 

Despite progress in climate finance, with flows reaching nearly USD 1.3 trillion annually in 2021/2022, there is a major imbalance in its distribution across different sectors. Energy and transport collectively attracted over 70 percent of mitigation finance, while the Agriculture, Forestry and Other Land Use (AFOLU) sector, which has significant mitigation and adaptation potential, remains largely underfunded. AFOLU, responsible for over a third of global GHG emissions, received less than 4 percent of mitigation and dual benefits finance, despite offering the highest mitigation potential at an estimated 14.5 Gt CO2eq. annually by 2030. Only USD 7 billion was directed toward AFOLU mitigation in 2021/2022, with an additional USD 29 billion for dual benefits, falling short of the estimated USD 1.1 trillion required annually to align agrifood systems with the 1.5 °C pathway. [1]

Agriculture, agrifood solutions and energy-smart agrifood systems approaches need to be integrated and prioritized more within national policies and Nationally Determined Contributions (NDCs). This will help to align these sectors with the fulfillment of Sustainable Development Goals (SDGs) and of the Paris Agreement targets, while also mobilizing resources accordingly. Recognizing this interrelation between energy and agriculture is critical to unlocking synergies that can accelerate climate action across sectors and achieve transformative, cross-cutting outcomes.

FAO recognizes that climate change, energy and food security are strictly connected, and energy-smart agrifood systems can play a key role and be part of the solution to the food and climate crises. FAO, through the Energy-Smart Agrifood Systems (ESAS) Programme, is providing member countries with energy-smart solutions at each step of the value chain to help transform agrifood systems, which are currently largely energy intensive and fossil fuel based. FAO promotes innovative energy-smart solutions that reduce GHG emissions, adapt to the impacts of the climate crisis, support job creation, promote gender equality and involvement of youth, foster local and rural development to boost incomes, safeguard natural resources and reduce hunger.

FAO, with over 20 years of experience in energy-smart agrifood system solutions, is committed to respond to the UNFCCC COP29 call for action on climate finance, by designing and implementing energy projects that incorporate the AFOLU sector. This will accelerate the AFOLU mitigation and adaptation potential to achieve the universal aim of net-zero emissions across all sectors.

[1] Buchner, B., Naran, B., Padmanabhi, R., Stout, S., Strinati, C., Wignarajah, D., Miao, G., Connolly, J. & Marini, N. 2023. Global Landscape of Climate Finance 2023. Climate Policy Initiative (CPI). Available at: https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Global-Landscape-of-Climate-Finance-2023.pdf ; CPI & FAO. 2024. The Triple Gap in Finance for Agrifood Systems. Climate Policy Initiative (CPI) & Food and Agriculture Organization of the United Nations (FAO). Available at: https://www.climatepolicyinitiative.org/publication/the-triple-gap-in-finance-for-agrifood-systems/