The Southern African farmers’ challenge: climate finance for agriculture

The Southern African farmers’ challenge: climate finance for agriculture

Kai Windhorst

Fin4ag - 17 July 2014 – Nairobi, Kenya

© UNIQUE forestry and land use GmbH

The challenge

Climate Finance objectives: Increase food security, strengthen climate change resilience and improve livelihoods of the rural poor while reducing emissions or increasing the GHG production efficiency.

Terminology: Reducing Emmissions Increasing GHG Production efficiency Linkages to Value chain finance


Climate Finance meets Value chain Finance

How can climate finance increase value-chain growth and competitiveness and therefore contribute to value chain finance?Climate Finance can:• Identify areas in value chains were financing is a constraint• Build farmer financial knowledge while paying for environmental

services• Understand the opportunities and constraints in value chain

financing (e.g. policies, aggregation) as they are similar to each other

• Introduce a performance based-metric (Carbon) for farming quality

• Introduce a clear system for aggregation and monitoring of finance flows


A guide to mitigation approaches

Two main approaches to mitigation planning in developing countries: Low Emission Development Strategies (LEDS)and Nationally Appropriate Mitigation Actions (NAMAs)

Policy, institutional and technical elements


Climate finance

Climate Policy Initiative, 2013


Climate finance - implications

Mitigation received the largest share of climate finance Public and private sector involvement are necessary Public finance should be used to leverage private investment Risks should be addressed


Synergies adaptation & mitigation

Agricultural measures that: Reduce soil erosion; Reduce leaching; Conserve soil moisture; Increase crop rotations and diversity; Reduce temperature extremes, shelter; Reduce / avoid land use change.

Specific examples: Grazing management Integrated rice and livestock systems Agroforestry


Development pathway of climate finance

1. Analysis of framework conditions and policy gaps Country sets overall policy goal:

2. National infrastructure is put in place: inventory, registry, approval and MRV procedures

3. Set of actions that reduce emissions below BAU and form part of NAMAs are identified

4. A concrete project or a whole sector NAMA applies for national approval and finance

7. National NAMA registry

Agriculture Livestock

National goal

Institutional & operational procedures

MRV system

Farmers

Financing vehicle

National public finance

Inter. Climate finance

Private climate finance

5. NAMA approved MRV system validated seeking finance

6. Project/NAMA financed and implemented

8. International NAMA registry

Farmers

Mitigation activities

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UNIQUE forestry and land use

Sectoral consulting firm with a focus on forestry and agriculture• 40 staff members• Regional offices in Africa in Uganda and Cameroon• Conducted more than 100 climate change and land use projects• Selected references:- Kenya Agricultural

Carbon Project (KACP)- Mainstreaming CSA- CAADP-Climate

adaptation best practicesin 7 countries

KONTAKTCONTACTCONTACTO

UNIQUE forestry and land use GmbHSchnewlinstr. 1079098 Freiburg, GermanyTel: +49 - 761 20 85 34 - 0Fax: +49 - 761 20 85 34 - [email protected]

The Southern African farmers’ challenge: climate finance for agriculture

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