Making climate finance work for smallholders
Why do we need climate finance, asks an article on the blog of the International Fund for Agricultural Development (IFAD).
“Adapting to a world that is two degrees warmer will cost money. Green technologies are expensive,” says the article.
Climate finance essentially involves transferring financial resource for climate change mitigation and adaptation projects from developed countries to developing countries.
In 2014, global climate finance amounted to approximately US $391 billion from both the public and private sector. The majority of this was spent on mitigation, such as in improved energy and transport systems.
IFAD is utilizing climate finance in its projects to “reduce risks from extreme weather events, adopt environmentally sustainable landscape and natural resource management practices, and sequester organic carbon”.
Smallholder famers can benefit from climate finance in many ways, especially through new and innovative technologies to manage climate risks.
Farmers that make use of techniques such as agroforestry and conservation agriculture, benefit from improved productivity and higher yields. However, the article suggests more work is needed to make climate finance work for smallholders.
”Climate finance is most effective when used as an incentive to improve and adjust the approach of other public or private sector investment programmes”, said Gernot Laganda, IFAD’s Climate Adaptation Specialist.
Read the full story: What is Climate Finance? – Managing the unavoidable…avoiding the unmanageable