The World Bank is intensifying its focus on climate-smart agriculture, a sector that combines reducing emissions, enhancing resilience, and boosting productivity. This approach aligns with global goals for low-emissions development and food security. Despite its importance, the agrifood system currently receives only 4.3% of global climate finance.
Since the Paris Agreement, the World Bank has significantly increased its investment in climate-smart agriculture to nearly $3 billion by fiscal year 2023 (FY23). In fiscal year 2024 (FY24), this area accounted for 62% of total lending in the agriculture and food sector. Projects approved between FY22-24 are expected to avoid 174.5 million tons of CO2 equivalent emissions.
The World Bank's strategy involves three key elements: producing knowledge on achieving food security in a changing climate, turning analytics into action through financing and advice, and scaling impact through partnerships and private sector involvement. These efforts support Sustainable Development Goals such as Zero Hunger and Climate Action.
The "Recipe for a Livable Planet" framework outlines strategies for mitigating the agrifood system's climate impact while maintaining global food supply. The World Bank also develops country-specific Climate-Smart Agriculture Investment Plans to identify financing opportunities.
Financial support from the World Bank includes projects in countries like Bangladesh, Colombia, Indonesia, and Tanzania to enhance farmers' productivity and resilience while reducing emissions. For instance, long-term credit lines in Colombia encourage investments in climate-smart practices.
Collaborations play a crucial role in these efforts. The World Bank contributes as a knowledge partner to international declarations on sustainable agriculture and supports UNFCCC initiatives addressing food security amid climate change impacts.
In FY24 alone, active projects have aided 4.7 million farmers in adopting improved technologies. A notable example is Uruguay's $350 million loan with an interest reduction mechanism tied to methane emission targets.
Looking forward, the World Bank plans to expand its initiatives by increasing investments, creating new knowledge resources, forming broader partnerships, and innovating financial mechanisms.