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LINKING CLIMATE CHANGE FINANCING AND SUSTAINABILITY

AI-generated Abstract

This paper argues for the integration of agricultural practices into climate change financing mechanisms, emphasizing the need to value not only carbon emissions but also the ecosystem and socio-economic benefits provided by sustainable agriculture. It highlights significant gaps in current climate policy that neglect the agricultural sector and proposes the development of new methodologies and simplified monitoring frameworks to enhance climate finance directed towards agriculture. The ultimate goal is to align climate financing with sustainable development objectives, thereby promoting food security, rural development, and sustainable natural resource management in developing countries.

Key takeaways

  • Building on a range of lessons learned in the climate policy arena, this paper suggests that the nascent FAO GEA process could help overcome these gaps and fill an important niche, by proposing and implementing novel climate funding streams for agriculture projects based on payments for ecosystem services (PES), i.e., by identifying a range of ecosystem and social benefits that, while still highly relevant to building climate change responses in LDCs, decisively move beyond carbon as the sole climate currency, allowing for a significant role for public as well as private funding.
  • The definition above implies that a GEA framework for action should include climate change adaptation and mitigation responses in agriculture and forestry, with a focus on supporting only those that are also conducive to preserving biodiversity, increasing food security, promoting sustainable use of natural resources, enhancing ecosystems resilience and generating rural development opportunities.
  • A specific focus on food security, poverty reduction and rural income creation requires policy activity and lobbying aimed at increasing formal references to agriculture, food security and rural development in future climate agreements, promoting eligibility of food and agriculture projects for adaptation and mitigation.
  • FAO could promote the creation of an Agriculture Panel or Working group, serving the international climate policy and technical support arena, in order to develop new agriculture methodologies in line with food security and sustainable rural development criteria.
  • Such efforts can support and further develop UNFCCC focus on climate change adaptation and mitigation, yet provide new momentum by moving beyond carbon credits for food and agriculture activities, by recognizing their intrinsic climate, ecosystem services and community benefits.