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Climate Smart Cocoa in Ghana Kick-off Workshop

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Kick off presentation for CCAFS Climate Smart Coffee and Cocoa Value Chains project in Ghana.

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Climate Smart Cocoa in Ghana Kick-off Workshop

  1. 1. Mainstreaming Climate-Smart Cocoa in Ghana
  2. 2. Presentation outline • Climate change and climate variability for cocoa in West Africa • Climate Change, Agriculture and Food Security (CCAFS) program • Project goals • Project consortium members • How we propose to work • Initial results of climate change exposure mapping • Final thoughts
  3. 3. Climate change and climate variability for cocoa in West Africa Mainstreaming Climate-Smart Cocoa
  4. 4. Climate change and climate variability for cocoa in West Africa • Cocoa increasingly vulnerable to climate change and climate variability. • In the cocoa-growing regions yearly and monthly minimum and maximum temperatures will increase by up to 2.0°C by 2050. • Yearly and monthly precipitation changes trivial. • Result: suitability for current cocoa-growing areas will decrease seriously by 2050. • Climate change will increase pressure on forest areas.
  5. 5. 2050 suitability changes for cocoa regions • Suitability losses in the West • Some gains towards Lake Volta. Läderach et al. (2013) Predicting the future climatic suitability for cocoa farming of the world’s leading producer countries, Ghana and Côte d’Ivoire” Climatic Change.
  6. 6. 2050 suitability changes for cocoa regions • Ghana: Losses in the North, Gains in central areas. • West-A.: Maximum dry season temperatures seen to be problematic. • West-A.: Areas at the margins to Savanna are most vulnerable. Schroth et al.,“Vulnerability to climate change of cocoa in West Africa: patterns, opportunities and limits to adaptation” Agriculture, Ecosystems and Environment (Submitted).
  7. 7. Climate Change, Agriculture and Food Security (CCAFS) program Mainstreaming Climate-Smart Cocoa
  8. 8. CGIAR • A global partnership that unites organizations engaged in research for a food secure future • 15 research centers engaged in 15 CGIAR Research Programs
  9. 9. Overall objectives: • Identify and develop pro- poor adaptation and mitigation practices, technologies and policies for agriculture and food systems. • Support the inclusion of agricultural issues in climate change policies, and of climate issues in agricultural policies, at all levels. The Climate Change, Agriculture and Food Security (CCAFS) program
  10. 10. Four flagship projects
  11. 11. Incremental adaptation Transformational adaptation Food security MitigationAdaptation Climate variability Climate change Synergies and trade- offs Whole food systems Problems addressed by CCAFS
  12. 12. Project goals Mainstreaming Climate-Smart Cocoa
  13. 13. Project goals (1) What we know • The impacts of climate change are not uniform across the cocoa belt of West Africa. • The differentiated nature of the risks means differentiated strategies for managing adaptation. • There is no one-size fits all strategy. What we will do • Use a transect approach to account for spatial and temporal differences • Select sites with high, medium and low climate change impacts and develop appropriate strategies -- in collaboration with others -- for each • Assess adequate adaptation strategies with producers and value chain actors (right varieties, diversification, shading, site specific recommendations, new generation of farmers, smart replanting strategies, etc.)
  14. 14. Project goals (2) What we will do (continued) • Test ways to drive CSA adoption at scale with appropriate support and incentives: a) Integration of site specific CSA practices into extension services tied to voluntary certification schemes; and, I b) Integration of site specific CSA practices into producer organization financing models. • Engage local actors in the above process through multi- stakeholder platforms (such as this meeting) in an on-going way from now until (at least) 2019. • We do not want to reinvent the wheel but rather support / build on existing activities and hope you will find what we can provide useful to achieving your business, research and policy goals.
  15. 15. Project consortium members Mainstreaming Climate-Smart Cocoa
  16. 16. International Center for Tropical Agriculture, CIAT • 50 years of applied research for improved livelihoods and environmental sustainability in the global tropics. • 900 staff active in Africa, Latin America and South East Asia. • Annual budget of US 130m. • Lead center for the global Climate Change, Agriculture and Food Security Program of the CGIAR.
  17. 17. International Center for Tropical Agriculture, CIAT Role in this project • Mapping risk of climate change for cocoa in Ghana • Economic analysis of cost and benefits of adaptation strategies • How to scale CSA practices in cocoa systems • Overall project and consortium management, reporting and learning.
  18. 18. International Institute of Tropical Agriculture One of the world's leading research institutes working with partners in Africa and beyond to reduce producer and consumer risks, enhance crop quality and productivity, improve livelihoods and generate wealth from agriculture.
  19. 19. International Institute of Tropical Agriculture Project role • Coordination in Ghana together with RA • Situational analysis • Stakeholder engagement • Social learning • Identify strategic learning sites along climate gradients • Develop relevant adaptation practices for cocoa • Climate Smart Agriculture planning that fosters gradual change/transition in the identified high impact zones • Match CSA to value chain actors’ needs according to the agreed identified adaptation zones
  20. 20. International Institute of Tropical Agriculture CSA pilot in Ghana Three CSA research pilot sites along climate gradient: Focus: • Situational analysis • Agricultural information systems • Farm modernisation and sustainable intensification • Farm rejuvenation, diversification and rehabilitation • Productive cocoa systems and cocoa farm investment scenarios in the face of climate change and climate variability • Biological control • Youth in cocoa farming and cocoa service provision
  21. 21. 21 Rainforest Alliance We work to conserve biodiversity and ensure sustainable livelihoods by transforming… Consumer behaviorBusiness practicesLand use practices
  22. 22. Rainforest Alliance Project role • Identify site & cocoa-based farming system specific CSA practices by exposure and investment gradient • Identify site and crop specific CSA practices that are most promising for inclusion into certification and training • Incorporation into Rainforest Alliance training materials • Replicate this process with other voluntary certification bodies • Influence uptake of methods and approaches more broadly with other relevant stakeholders
  23. 23. Root Capital An Impact Investment Pioneer Seeks a financial return AND socio-economic and environmental benefits for clients and their members Provides a range of credit and financial advisory services to rural enterprises in the “missing middle” 15 years old, over $120M under management,$850M lent cumulatively; 97% repayment rate; 100% return of funds to investors Lends along supply chains where contracts serve as the primary form of collateral Major focus on measuring impacts; standard metrics and deeper analysis for a sub-sample of clients
  24. 24. Root Capital Project role Loan Details Range Loan Size $50K-$3M Interest Rate 9-14% Short-Term (6-12 months) Trade Credit: Purchased from producers Pre-Harvest: Support producer production capacity, including input use Longer-Term (1-5 years) Working Capital: General operating capital Capital Expenditure: Purchase equipment, property, vehicles Farm Renovation: improve plant stock, increase yield, productivity and quality
  25. 25. Mainstreaming CSA into agricultural finance • Root Capital will assess how to adapt its financial products to facilitate adoption of CSA in the cocoa sector • Positive experience with coffee in Latin America • Multiple challenges to date working in the cocoa sector in Ghana, so these will need to be addressed
  26. 26. A Global Learning Platform to Mainstream Sustainability
  27. 27. Sustainable Food Lab The Business Case for Climate Smart Agriculture • The Food Lab’s role is to engage global and national companies to understand how their strategic sourcing priorities are effected by climate risk. • How might better analytics and tailored adaptation guidelines strengthen their value chains? • How might companies integrate adaptation into their carbon reduction goals? • Where is the win win and synergy with government efforts at the national level?
  28. 28. How we propose to work Mainstreaming Climate-Smart Cocoa
  29. 29. Proposed impact pathway
  30. 30. Proposed impact pathway - roles
  31. 31. Timeline 2015 20192016 2017
  32. 32. Initial results of climate change exposure mapping Mainstreaming Climate-Smart Cocoa
  33. 33. Current distribution cocoa ecological zones
  34. 34. Future distribution of cocoa ecological zones
  35. 35. Direction of change
  36. 36. Distribution of impact
  37. 37. Final thougths Mainstreaming Climate-Smart Cocoa
  38. 38. Final thoughts The project expects to contribute to:  Clear knowledge of what types of CSA practices to promote where, for whom and with what return on investment  Knowledge of under what conditions extension and PO investments function as incentives for CSA uptake at scale  Identification of additional public, private or public-private incentives needed to promote widespread CSA adoption in the cocoa sector  Functional multi-stakeholder platforms that combines climate science with industry knowledge to reduce risk faced by cocoa in Ghana going forward. • We seek to add value to what all of you are already doing around climate change and look forward to hearing what you think, how we might best collaborate and what additional issues should be considered.
  39. 39. Any question for clarification? Thank you

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