Opportunities to Target and Coordinate Finances and Investment to make Climate Services Work for Smallholder Farmers Across Africa

1. Opportunities to Target and Coordinate Finances
and Investment to make Climate Services Work
for Smallholder Farmers Across Africa
Justus Kabyemera, PhD
Coordinator- ClimDev- Africa Special
Fund (CDSF), African Development Bank

2. Organization of the Talk
•Facts about Climate Change and Smallholders
•Why Climate Financing to Smallholders Farmers?
•Climate Adaptation v/s Mitigation Approaches by
Smallholder Farmers
•Opportunities for Climate Finance to Smallholder
Farmers in Africa
•Challenges and Opportunities for Targeting Climate
Financing for Smallholder Farmers
•Climate Change Financing Instruments
•Future of Climate Financing for Smallholder Farmers

3. Facts About Climate Change and Smallholder
Farmers
Climate change will expose 75-250 million more people to increased
water stress by 2020 in Africa.
Sahel region has experienced a 25% decline in rainfall since 1960s.
Food production needs to increase by 70% by 2050, but the total arable
area in in SSA and Latin America may increase by no more than 12%.
95% of African agriculture is rain-fed.
Number of people affected by climate-related humanitarian crisis to
increase by 54% to 375 million by 2020.
About 500 M smallholder farms in the world.
Smallholders produce > 80% of food in Asia and
and Sub-Saharan Africa.
Climate finance: $22 billion spent on climate
adaptation and $337 billion spent on climate
mitigation (2013).

4. Why Financing to Smallholder Farmers?
 To enable smallholder farmers to adapt
to climate change, increase agricultural
productivity and improve their food
security and livelihoods, contribute to
climate change mitigation through carbon
sequestration.
Agriculture is directly responsible for 14 per cent of total greenhouse
gas emissions, and broader rural land use decisions including
deforestation accounts for an additional 18 per cent of emissions.
Despite sharing little responsibility for global warming, smallholder
farmers in developing nations are most vulnerable to climate change
and will disproportionately suffer from its effects.

5. Justification for Combined Climate Adaptation and
Mitigation Approaches
• Adaptation cost study by the World Bank and IFPRI indicates
additional agricultural adaptation investment needs in Sub-Saharan
Africa, the Near East and North Africa is in the range of US$3
billion/year
• Climate change adaptation for African countries is more important
than mitigation, but the fact that agricultural mitigation practices
related to sustainable land and water management often result
simultaneously in mitigation and adaptation benefits justifies actions
to enhance mitigation investments.

6. The Share of Climate Financing for
Adaptation v/s Mitigation
• Figure

8. Climate Finance Instruments – Globally and at the
AfDB
There is a proliferation of multilateral and bilateral climate finance
instruments that have been created in recent years. But few are
accessible for smallholder climate financing including:
• The Green Climate Fund: To reach $ 100 billion (now at $ 10 billion)
both for adaptation and mitigation.
• The Adaptation Fund – Finances concrete adaptation projects and
programmes in developing countries that are Parties to the Kyoto
Protocol
• GEF Least Developed Countries Fund - US$169 million - Address climate
change issues of least developed countries.
• GEF Seed Capital Assistance Facility - US$10.5 million - Provide seed
financing to early stage clean energy enterprises and projects
• GEF Special Climate Change Fund - US$110 million Support technology
transfer projects and programmes for sustainable development

9. Climate Finance Instruments – Globally and at the
AfDB
Nordic Development Fund – €1.0 billion - Facilitate climate change
investments in low-income countries
WB Clean Technology Fund - US$4.5 billion Development and
deployment of low-carbon technologies.
WB-Scaling-up Renewable Energy-US$318 million Assist low income
countries develop low carbon strategy

10. Climate Finance Instruments – Globally and at the
AfDB
 The African Water Facility (AWF): Mainstream proofing against
climate change and other safeguards and leverage financing that
enables water and climate change adaptation and mitigation
 ClimDev-Africa Special Fund (CDSF): scale up the capacities of key
institutions and stakeholders to improving climate-related data
and observation – ranges 200,000 and 5 M Euro
 The Pilot Program for Climate Resilience: Support countries to
integrate Climate risk and resilience into core Development
Planning
 The Africa Climate Change Fund (ACCF) - support transition to
climate-resilient and low-carbon development.

11. Challenges and Opportunities for Targeting
Climate Financing for Smallholder Farmers

12. Challenges for Climate Financing to Smallholder
Farmers
Smallholders face significant risks and barriers that limit their access to
climate finance, including:
Insecure land tenure and the high cost of implementing projects.
high up-front costs for infrastructure, skills development for farmers
and strengthening of institutions.
Difficulties in accessing relevant data and information.
Special requirements to access global climate funds (CDSF
Experience).

13. Opportunities: Climate Smart Agriculture (CSA)
Concept: Agriculture- that sustainably increases productivity, resilience
(adaptation), reduces/removes greenhouse gases (mitigation), and
enhances achievement of national food security and
development goals.
For smallholder farmers in developing countries, the opportunities for
greater food security and increased income together with greater
resilience will be more important to adopting climate-smart agriculture
than mitigation opportunities.
CSA seeks to enhance the capacity of the agriculture sector to
sustainably support food security, incorporating the need for
adaptation and the potential for mitigation into development
strategies.

14. Opportunities: Existence of NAPs, NAPA, NAMAs and
NAFSIPs
A number of Government Initiatives have been undertaken to
facilitate climate change related activities:
National adaptation plans (NAPs): Enable developing countries to Identify
medium- and long-term adaptation needs and develop and implement strategies
and programmes to address those needs.
National adaptation programmes of action (NAPAs): A process for the least
developed countries to identify priority activities that respond to their urgent and
immediate needs with regards to adaptation.
Nationally Appropriate Mitigation Actions: NAMAs are actions by developing
country Parties aimed at achieving a deviation in emissions relative to 'business as
usual' emissions in 2020.
National Agriculture and Food Security Investment Plans (NAFSIPs): to integrate
the scaling up of practices that augment development, food security, and climate
change adaptation and mitigation.
Intended Nationally Determined Contributions (INDCs): Post-2020 climate actions
by Countries to achieve 2015 agreement for a low-carbon, climate-resilient future.

15. Opportunities: New and Additional Climate
Financing Mechanisms
• Innovative Financing Mechanisms: new
approaches for pooling private and public revenue
streams; Public/Private Partnerships; new revenue
streams, new incentives to address market failures,
blend funds, Co-financing, etc. (Harness Current)
• New and Additional Financing: contentious due to
clash with ODA
• Inclusive Business Finance: capital that supports
the creation, growth, and sustainability of small
holders and small enterprises.

16. What Needs to be Done Post COP-21?
 Build the capacity of national and subnational agencies accredited,
or seeking accreditation.
Devolve funding and decision making to local government levels.
National Level Initiatives/Strategies
Facilitate inclusive adaptation
planning and monitoring
 Use a climate finance marker
against both budget
allocations and actual spend
for adaptation and mitigation
actions

17. What Needs to be Done Post COP-21?
International Level Initiatives/Approaches
Recognize and correct the continuing imbalance between adaptation
and mitigation in the allocation of international climate finance.
Agree a climate finance package at COP21 in Paris that raises the
confidence of African nations on the provision of predictable,
sustainable, adequate and additional climate finance post-2020.
Agree on a climate finance package that includes a commitment to a
50 percent floor for the adaptation allocation from public funds in the
$100bn goal by 2020 and thereafter.
Ensure funding entities such as the Green Climate Fund (GCF) support
the types of programmatic – rather than project-by project –
approaches needed to scale up adaptation actions that support the
most vulnerable communities at the local level

18. THANK YOU