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The Southern African farmers’ challenge: climate finance for agriculture
- 1. The Southern African farmers’ challenge:
climate finance for agriculture
Kai Windhorst
Fin4ag - 17 July 2014 – Nairobi, Kenya
- 2. © 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
- 3. © UNIQUE forestry and land use GmbH
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
- 4. © UNIQUE forestry and land use GmbH
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
- 5. © UNIQUE forestry and land use GmbH
Climate finance
Climate Policy Initiative, 2013
- 6. © UNIQUE forestry and land use GmbH
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
- 7. © UNIQUE forestry and land use GmbH
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
- 8. © UNIQUE forestry and land use GmbH
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
NAMAdevelopmentpathway
- 9. © UNIQUE forestry and land use GmbH
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 practices
in 7 countries