ECOSOC Partnership Forum High-Level Side-Event: Accelerate Financing for Agrifood Systems Transformation

Accelerate Financing for Agrifood Systems Transformation

High-level Side Event at the United Nations headquarters 

Tuesday, 27 January | 13:15 - 14:30 (EST) | Conference Room 11, UNHQ | Webcast

Context

In 2024, an estimated 673 million people faced hunger, and projections indicate that 582 million will still be hungry by 2030. At the same time, obesity and diet related non communicable diseases are rising in all regions. Moreover, 2.6 billion people cannot afford a healthy diet, while many others face barriers such as limited knowledge, skills, time, or constraints within their food environments.

The State of Food and Agriculture (SOFA) 2023 report shows that when the hidden costs of agrifood systems are considered, including environmental degradation such as land and water degradation, public health burdens, and inequality, they exceed USD 10 trillion each year. These costs are unsustainable and fall disproportionately on the most vulnerable. Yet current financing for agrifood systems transformation is often misaligned with sustainability goals and remains far below what is required. Few new investments are directed toward transformative action, underscoring the need for substantial repurposing of public expenditure that delivers more effectively on multiple, reinforcing goals in a coordinated manner.

The financing gap for agrifood systems transformation is estimated at USD 680 billion annually through 2030, according to Laborde and Torero. Mobilizing and aligning financing at this scale remains a major challenge, and the urgency of today’s interconnected crises calls for a new financing architecture that is more coherent, predictable, and catalytic.

Governments face growing obstacles to accessing the resources needed for agrifood systems transformation. Rising public debt and limited fiscal space prevent many from investing at the scale required. Private sector participation also remains insufficient, which highlights the need for broader engagement with key actors. Innovative financial instruments can help close critical gaps for farmers and agrifood small and medium enterprises. Blended finance can also play an essential role in attracting private capital and supporting high impact business models that drive a more sustainable, inclusive, and resilient transformation of agrifood systems, where there is, among others, a more efficient and sustainable use of water and energy supported by innovation, agrifood infrastructure and market links.

Objective

Against this background, the session aims to position financing as a central lever for agrifood systems transformation- which cuts across all Sustainable Development Goals under review this year- within the broader Financing for Development (FFD) agenda. It will highlight how countries can mobilize, align, and scale financial resources by integrating technical support with national pathways, policies, and investment programmes. The discussion will showcase initiatives that help governments access new forms of capital, strengthen co-financing with public and private partners, and leverage international financial institutions more effectively. By convening key Members and strategic actors engaged in systemic, evidence-based investment, the event will place particular focus on countries whose economies are highly dependent on agrifood systems yet remain vulnerable to recurring shocks and face significant barriers to accessing innovative and affordable finance.

Under the overall theme of the Forum, Transformative, equitable, innovative and coordinated actions for the 2030 Agenda for Sustainable Development and its Sustainable Development Goals for a sustainable future for all the objective is to illuminate the current structure of agrifood systems financing and identify emerging facilities, opportunities, and solutions that can mobilize targeted investment at scale. This includes FAO’s Financing for Shock-Driven Food Crisis Facility (FSFC), an innovative mechanism that blends concessional and private capital to strengthen prevention, anticipatory action, and resilience to shocks. The session will also explore the growing role of blended and risk-sharing finance, which can unlock private investment for sectors and communities often considered too risky. Special attention will be given to debt swaps, particularly through the Seville Debt Swaps Facility led by Spain, as a strategic tool to free fiscal space and channel resources into climate-smart, country-led agrifood priorities. Across all discussions, emphasis will be placed on ensuring equitable access to finance so that women, youth, and smallholder farmers can fully participate in transforming agrifood systems to be more efficient, inclusive, resilient, and sustainable—delivering good food for all, today and tomorrow.

Session Format

High-Level Opening followed by technical presentation and a roundtable panel discussion, concluded by high-level closing remarks.

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