New report explores how public-led bonds can mobilize private investment and expand support for smallholder farmers and agricultural enterprises Innovative green bonds can help countries mobilize new sources of finance for climate-resilient agrifood systems, expand investment in sustainable agriculture and improve access to finance for smallholder farmers and agricultural enterprises, according to the new report from the Food and Agriculture Organization of the United Nations (FAO). Despite the urgent need to strengthen agrifood systems against climate change, financing remains insufficient to implement national climate actions, particularly in agriculture. Smallholder farmers, small-scale producers, and small and medium-sized agricultural enterprises (agri-SMEs) often face barriers to accessing the finance needed to adopt climate-smart practices. Public-led financial instruments can help address this financing gap by mobilizing private and institutional investment through green bond markets, where investor demand continues to expand. Complementing existing sources of climate finance, including the Global Environment Facility (GEF) and Green Climate Fund (GCF), public-led bonds help countries attract additional investment for agrifood systems initiatives that deliver climate and environmental benefits. FAO, in collaboration with countries, banks and partners, has developed innovative models for Food Security Green Bonds to help mobilize financing for national climate action and agrifood systems transformation. The report provides guidance for governments and financial institutions on developing and issuing these bonds, including strategies to channel sustainable finance towards smallholders and agri-SMEs for adoption of climate-smart practices and technologies at scale. “Grounded in regional experience and drawing on global expertise, this report aims to support countries in developing public-led bonds that help close the financing gap for a sustainable, climate-resilient and food-secure future globally, ” said Alue Dohong, Assistant Director-General and Regional Representative, FAO Regional Office for Asia and the Pacific. FAO and partners promote innovative green bonds to finance climate-resilient agrifood systems FAO and the Climate Bonds Initiative hosted a webinar to present new models for Food Security Green Bonds as well as criteria that can support the design of eligible bond investments. The webinar also featured insights from governments, banks and partners that have issued or are interested in developing green bonds in the agriculture sector, incorporating strategies to finance smallholder farmers, small-scale producers, and agri-SMEs for adoption of climate-smart practices and technologies to safeguard and strengthen food security. FAO will continue working with countries and financial institutions to strengthen capacity and explore innovative financing approaches for sustainable, climate-resilient agrifood systems. Source: FAO promotes Food Security Green Bonds to scale finance for sustainable, climate-resilient agrifood systems *** Media contact: Mahira Afzal, Communications Specialist, FAO Regional Office for Asia and the Pacific, Mahira. afzal@fao. org, +66 92 455 8810
Thailand: FAO promotes Food Security Green Bonds to scale finance for sustainable, climate-resilient agrifood systems
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