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Climate Smart Agriculture Project: using policy and economic analysis as a basis for investment project design and decision making
 

Climate Smart Agriculture Project: using policy and economic analysis as a basis for investment project design and decision making

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www.fao.org/climatechange/epic ...

www.fao.org/climatechange/epic

This presentation was prepared as background to the FAO TCI Investment Days 2013 held at IFAD on 17-18 December. The presentation provides an overview of the theory of change of the FAO-EC Climate-Smart Agriculture project and highlights the contribution of the project in providing sound evidence for investment proposals.

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    Climate Smart Agriculture Project: using policy and economic analysis as a basis for investment project design and decision making Climate Smart Agriculture Project: using policy and economic analysis as a basis for investment project design and decision making Presentation Transcript

    • Climate Smart Agriculture Project: using policy and economic analysis as a basis for investment project design and decisionmaking Economics and Policy Innovations for Climate-Smart Agriculture Program – ESA Romina Cavatassi – Bjorn Conrad Rome –Investment Days 17 December 2013 www.fao.org/climatechange/epic 1
    • OUTLINE OF THE PRESENTATION • Background and rationale of the project • Theory of change: the logic of the project • How does it translate in practice • Improving the building blocks of Investment proposal • Moving Forward and conclusions www.fao.org/climatechange/epic 2
    • BACKGROUND AND RATIONALE 3 • Research on natural resources and agriculture: solid and interesting results but unclear link with policy changes or real world terms • Agriculture: key sector to address challenges of food security under climate change (sink and source) • Ag growth effective means of poverty reduction • Projected CC impacts: need adaptation in agriculture • Mitigation can come through synergistic measures and be an additional source of finance www.fao.org/climatechange/epic
    • CSA PROJECT The CSA project aims building evidence-based agricultural development strategies, policies and investment frameworks to: 1. sustainably increase agricultural productivity and incomes, 2. build resilience and the capacity of agricultural and food systems to adapt to climate change, and 3. seek opportunities to reduce and remove GHGs compatibly with their national food security and development goals. www.fao.org/climatechange/epic 4
    • Project Framework NEEDS RESEARCH COMPONENT OUTPUTS 5 Develop a policy environment & and agricultural investments to improve food security and provide resilience under climate uncertainty Investment proposals POLICY SUPPORT COMPONENT www.fao.org/climatechange/epic
    • Feeding into investment 6 1. Working in three countries: Malawi, Zambia and Viet Nam. 2. Quantitative and qualitative analysis of primary and secondary data at hh and community level + climate and geo-referenced data and institutional data to: a) assess the situation, b) Identify CSA best options in terms of adaptation but also mitigation and food security (i.e. yield response, cost benefit analysis, calculate mitigation potential etc), c) understand barriers to CSA adoption d) Identify enabling factors www.fao.org/climatechange/epic
    • Identifying Best Practices 7 The natural approach to identifying CSA best practices is to examine proxies for the three pillars of CSA: 1. Productivity 2. Resilience 3. Carbon balances •Performance on the 3 CSA dimensions is context specific: depends on the agro-ecological and socioeconomic contexts, and on the farming system it is being applied to. www.fao.org/climatechange/epic 7
    • Overarching 8 1. Coordination between climate change and agricultural policy (e.g. enhancing climate change and agricultural policy alignment in support of CSA, Supporting capacity to link international and national policy issues) 2. Capacity development: • Supporting master students, a PhD student and mentoring • Implement training activities to agricultural frontline staff • Support policy makers’ participation to UNFCCC negotiations 3. Collaboration with CCAFS: way forward and linking various project components www.fao.org/climatechange/epic
    • Using scenarios to improve planning • Decision makers critically review and adapt the scenarios to ensure that they are plausible, challenging and relevant to their concerns • Then, the scenarios are used to challenge policies and investments • Plans can be made more concrete and elaborate by conducting back-casting • Stress-testing investment proposals in the context of multiple scenarios will help make them more concrete, flexible and feasible www.fao.org/climatechange/epic 9
    • Project Framework NEEDS Develop a policy environment & and agricultural investments to improve food security and provide resilience under climate uncertainty RESEARCH COMPONENT What are the synergies and tradeoffs between food security, adaptation and mitigation from ag. practices? What are the barriers to adoption of CSA practices? Legal & Institutional Appraisal: mapping institutional relationships and identifying constraints OUTPUTS 10 Evidence Base Strategic Framework & Policy Advice Investment proposals POLICY SUPPORT COMPONENT What are the policy levers to facilitate adoption and what will they cost? Identifying where policy coordination at the national level is needed and how to do it www.fao.org/climatechange/epic Facilitating national participation/inputs to climate and ag international policy process Capacity Building
    • Building an EPIC-based investment proposal 11 refined investment • Country ownership and engagement • Dynamic baseline and robustness of investment • Identification and selection of project activities • Basis for systemic interventions different investment EPIC as a model for intra-FAO cooperation on investments? www.fao.org/climatechange/epic
    • Some examples: With climate information can target interventions... www.fao.org/climatechange/epic Source: (FAO, 2013
    • The case of Zambia 13 Practices: Conservation Farming practices: minimum soil disturbance (MSD) and crop rotation(CR) – MSD adoption remains very low: ~5-6% (sample size 4,187) – Significant dis-adoption: ~90% of MSD adopters in 2004 abandoned it – Adoption intensity is significantly higher for smallholders Adoption: Strongest determinants – Variability of rainfall – Delays in the onset of rains – Extension information www.fao.org/climatechange/epic
    • Thank you! www.fao.org/climatechange/epic 14