Deissy Martínez Barón POLICY SEMINAR Financing food systems transformation JUL 13, 2021 - 09:30 AM TO 11:00 AM EDT

1. Science-based sustainable finance
towards climate-smart food systems
Deissy Martínez Barón
Regional Program Leader for CCAFS in Latin America
AFS is led by:
POLICY SEMINAR Financing food systems transformation JUL 13, 2021

2. About CGIAR Sustainable Finance
Objective
Design innovative investment solutions and vehicles to catalyze
private capital
“Design-to-launch" support to ensure scientific rigor and maximize SDG impact of private investments in food, land and
water systems.
Scale scientific innovation and accelerate the digital revolution
Design and implement pre/post-investment technical assistance that scales CGIAR’s science and research for food,
land and water systems' transformation.
Market intelligence on sustainable finance for food, land and water
systems' transformation
Provide cutting-edge research and business intelligence on sustainable finance for food, land and water systems
and develop a pipeline of high-impact investable projects that can be scaled through private capital.
"Harnessing science and innovation to reorient and leverage capital flows
towards sustainable investments that transform food, land and water systems"
1
2
3

3. CGIAR Fund Design and Technical
Assistance in practice
USD 200Mio Climate Smart Food Systems Fund (CSFSF)
Technical assessment of MFI’s and smallholders for the Small Farmers Climate Adaptation Fund (SMAF)
Impact Investment Fund
Type of Intervention
Global
Location
Fund Design and
T
echnicalAssist.
CGIAR Contribution
Productivity,Adaptation and
Mitigation
Impact Themes
Climate Smart Food
Systems
Sector
$200Mio
Investment Size
$7-10Mio
CGIAR Contribution
Adaptation Fund
Type of Intervention
Latin America (Honduras, Ecuador, El
Salvador and Guatemala)
Location
T
echnicalAssistance
CGIAR Contribution
Productivity and Adaptation
Impact Themes
Smallholder agriculture
Sector
$30Mio
Investment Size

4. USD 200Mio Climate Smart Food Systems Fund
(CSFSF)
▪ Negative impact of climate
change on agri-SME’s and
smallholders.
▪ How to transition to a low
carbon and climate resilient
food systems.
Key Challenges Solution
• CGIAR proposed to integrate
a science-based food system
approach into the
investment strategy of the
fund.
• Design and structure a
science-based T
A facility to
implement science at each
stage of the investment
process.
A leading impact investor
with vast experience in
investing in agribusinesses
Critical Value additions
Initial research to support
the fund in identifying four
main investment themes and
related climate smart
interventions.
Designed a novel impact
screening tool for the
investment officers of the
fund.
Pre-Investment
▪ Technical risk assessment of the
potential investees which includes
climate, production, natural resources
risk etc.
Market building
▪ Science based
prioritization to identify
entry points to address
negative externalities
▪ Life cycle profiling
assessment
▪ Identify and develop CSA interventions
to address key risks for each deal
Summary of Technical Assistance and at which stages of the investment process
Impact Outcomes
Increased productivity,
adaptation and
mitigation
Post-Investment
▪ CSA solutions implementation
▪ Promote food systems approach
through knowledge sharing and
case studies
CGIAR
Technical
Assistance
in practice
Case 1

5. ▪ MFI’s lack climate change
adaptation products
catering to smallholder
farmers
▪ Developing and prioritising
portfolios that can be
financed by MFI’s in
Guatemala, Honduras, El
Salvador, and Ecuador
Key Challenges Solution
▪ CGIAR pooled its on
ground resources and
conducted a technical
assessment in target
countries interviewing
farmers and MFI’s
▪ Developed portfolios of
adaptation measures that
support smallholder farmers
to increase their agricultural
productivity / resilience
A USD 32m smallholder
adaptation fund investing in
smallholder farmers through
MFIs in 4 LatinAmerican
countries.
Critical Value additions
Field visits and focused group
discussions with key
stakeholder (MFI’s and
smallholder farmers)
Market validation
Development of tools and
procedures to measure impact
targets
▪ Identification of adaptation measures
that can be financed by MFI’s
Market building
▪ Assessment of smallholder farmers
profile and their vulnerability to
climate change across the fund’s four
targeted countries
Pre-Investment
▪ Cost benefit analysis to identify
potential investment opportunities
▪ Impact metrics identification and
tools for monitoring and
evaluation (M&E) framework for
each portfolio
Summary of Technical Assistance and at which stages of the investment process
Impact Outcomes
Access to adaptation finance
for smallholder farmers
Women empowerment through
access to financial services
Livelihood's improvement &
more resilient and sustainable
farms
CGIAR
Technical
Assistance
in practice
Case 2
Technical assessment of MFI’s and smallholders for the
Smallholder Farmers Climate Adaptation Fund (SMAF)

6. In summary
Science can bridge the gap between sustainability and profitability
to support the transformation of food systems.
1
2
3
Our joint work has enabled financial institutions to use the tools to
promote Climate-Smart Agriculture by knowing the climate risk that
producers face, the measures they should implement to reduce risk
and how much they cost.
Designing innovative and science-based solutions to support
pipeline development and new standalone investment
opportunities is crucial to achieve impact at scale of climate-smart
agriculture and achieve food systems transformation.

7. Thank you!
d.m.baron@cgiar.org @deissymb @cgiarclimate_LA