IFAD boosts climate finance amid food system transformation

FE Team | Published: November 12, 2024 23:59:00

The International Fund for Agricultural Development (IFAD), a UN specialised agency and international financial institution, has both increased and exceeded its goals in delivering financing to rural and vulnerable populations, reports UNB.
This achievement comes at a time when the transformation of food systems in the face of climate change requires unprecedented levels of funding and financial innovation.
As of today, IFAD has invested more than US$1.28 billion in projects supporting small-scale farmers to adapt to climate change and produce food sustainably for the period 2022-2024.
This represents 47 per cent of the Fund's Programme of Loans and Grants (PoLG), and exceeds the target set at 40 per cent, according to IFAD's Climate Action Report 2024.
The report entitled 'Green Horizons: A Year of Climate Action for People, Resilience and Biodiversity' was released on Tuesday, highlighting IFAD's strengthened commitment to supporting the world's most vulnerable small-scale farmers.
The report documents IFAD's efforts to help these farmers adapt to climate change impacts, protect ecosystems, and promote sustainable agriculture.
"Climate change affects us all, but small farmers - who grow nearly half our food - are on the front lines with the least resources to adapt," said IFAD President Alvaro Lario.
"These farmers aren't just food producers; they are the backbone of rural economies, pillars of global food systems, and guardians of biodiversity. Investing in their success isn't just moral - it's smart economics. That's why IFAD is ramping up support and channeling more funds to rural communities."
In response to the growing urgency to take climate action, IFAD decided to boost its spending for climate-related adaptation and mitigation projects from 25 per cent of its PoLG during the 2019-2021 period to 40 per cent from 2022 to 2024.
IFAD's next financing cycle, from 2025 to 2027, will increase the share of climate-related activities in its loans and grants even further, to 45 per cent.
The report shows that IFAD spent US$502.7 million in climate adaptation and mitigation finance during 2022-2023.
Showing strong acceleration, the latest figures reveal that IFAD invested more than US$750 million of climate finance for IFAD projects so far this year, supporting small-scale farmers to build their resilience to a changing climate.
In 2022-2023, 78 per cent of the projects were designed to improve adaptive capacity of small-hold farmers. Projects in East, West, Central and Southern Africa received US$ 330.4 million of the total.
IFAD's Climate Action Report 2023 is filled with real-life examples of the projects that IFAD funds across the world, from sustainable water and pasture management to ecosystem restoration.
For example, the Pro-Semi-arid Project in Bahia in Brazil promotes agro-biodiversity through backyard gardens and creole seeds and breeds.
The project works with 20 traditional collective grassland communities, or fundos de pasto, to provide training on land restoration and biodiversity conservation, re-establish soil cover with native vegetation and develop nurseries for the production of seedlings.
It also promotes sustainable agro-forestry systems using native species and combat bush fires. It reached 75,000 rural families.