A recent report from the Food and Agriculture Organization of the United Nations (FAO) has raised serious concerns over the dwindling amount of climate finance directed towards agrifood systems despite their pivotal role in achieving climate objectives.
The report indicates a concerning trend where climate finance for agrifood systems, essential for mitigation and adaptation strategies in the fight against climate change, is insufficient and on a declining trajectory. This decline is starkly contrasted against the overall global climate finance flows, which are generally rising.
The FAO said that from 2000 to 2021, agrifood systems received approximately USD 183 billion in climate-related development financial support. Notably, over half of this funding was allocated after 2016, signalling an initial increase in attention towards these systems. However, this trend took a downturn in 2021, with contributions falling to USD 19 billion, marking a 12% reduction from the previous year.
The FAO’s findings come amidst another alarming revelation from the UN Environment Programme (UNEP). In their latest ‘State of Finance for Nature’ report, released on December 9 at COP28, UNEP revealed that nearly USD 7 trillion is invested annually in activities that negatively impact nature. This figure equals around 7% of the global Gross Domestic Product (GDP).
While investments in nature-based solutions in 2022 were around USD 200 billion, the UNEP report highlights a severe imbalance, showing that finance flows to nature-damaging activities are over 30 times greater. This disparity lays bare the urgent need to recalibrate financial priorities to effectively address the intertwined crises of climate change, biodiversity loss, and land degradation.
The United Nations Secretary-General, Antonio Guterres, speaking to the media at COP28, emphasised the dire situation facing many developing countries. He pointed out that these nations’ overwhelming debt and limited fiscal capabilities are steering them towards a climate catastrophe. “Many developing countries are drowning in debt; they have no fiscal space, and that surely means climate chaos. We need all commitments made by developed countries on finance and adaption to be met fully and transparently,” he said. (nsh)
