Presented by William Sutton, Pierre Gerber, Leah Germer, Félix Teillard, Clark Halpern, Benjamin Henderson, Michael Mcleod and Lee Cando at the Programme for Climate-Smart Livestock systems Closing Event, 13 September 2022

1. PROGRAM FOR CLIMATE SMART
LIVESTOCK SYSTEMS
POLICIES AND FINANCE TO SCALE-UP CLIMATE
SMART LIVESTOCK
September 13th, 2022
William Sutton
Pierre Gerber
Leah Germer, Félix Teillard,
Clark Halpern, Benjamin
Henderson, Michael Mcleod,
Lee Cando

2. WORLD BANK SUPPORT FOR
SCALING UP CLIMATE FINANCE IN
AGRI-FOOD AND LIVESTOCK
SYSTEMS

3. 2
The challenge:
Agriculture is part of
the problem
• Food systems generate 34% of
global emissions
• Agriculture is:
• #1 source of methane
• #1 source of biodiversity
loss
• User of 70% of fresh water
• If food waste were a
country, it would be 3rd
highest emitter
• Emissions from agriculture are
increasing in developing
countries

4. The opportunities:
Agriculture can heal
the planet
3
 Climate-smart, inclusive agriculture
(CSIA) is essential to meeting climate
goals – with substantial social, food
security, and environmental benefits
 Natural climate solutions can provide
a third of the most cost-effective
ways to achieve the Paris Agreement
 Climate finance can play a unique
role in unlocking public-private
investments to scale up CSIA
 Financing gap: Only 3% of climate
finance goes to agriculture globally

5. Progress to date
4
• Integrated climate into AGF
portfolio, especially for
adaptation
• Ensured the prominence of
agri-food systems
transformation as a “key
transition” in the new WBG
Climate Change Action Plan
• Pioneered new CSIA
technologies in WB
operations to demonstrate
viability at scale
• Increased CSIA knowledge
in client countries
Increased annual financing for CSIA by 7
times since Paris – to nearly $3 billion a
year
14 CSA Investment Plans

6. Growing active livestock portfolio
The average Climate co-benefits
generated by the livestock portfolio in
the last 2 ½ years is 61%:
- higher than ave. for the
Agriculture portfolio overall;
- an improvement over the average
for the three previous fiscal years.
Rising from an average of US$150
million of new engagement per annum
in 2010 to about US$700 million per
annum in the last three years.

7. PATHS FORWARD: ACCELERATING AND SCALING CSIA
• Increase understanding of the
optimal pathways for promoting
decarbonization of the food system
and recarbonization of landscapes
through World Bank support
• Give policymakers the knowledge
they need to make climate-smart,
inclusive decisions
• Reduce emissions and pollution from
priority production systems like
livestock and rice
• Expand CSIA approaches beyond
production, across the value chain
• Mobilize global investment in soil
health as a natural climate solution
Global flagship study and strategy on
Decarbonization of the Air and
Recarbonization of Landscapes
through Agri-Food System
Transformation
Country Farm-to-Fork Climate
Action Plans (F2F CAPs)
Pilot and scale climate-smart digital
innovations in investment projects
Develop and deploy agri-food value
chain emissions tools
Implement accurate, cost-effective
and scalable measurement,
reporting and verification (MRV)
systems

8. TAKEAWAYS FROM PCSL

9. PCSL – implementing CSL at scale
I. Project/Country-level activities
II. Regional activity
Strategy for resilient and sustainable livestock in the IGAD region
Country/operation Awareness raising and TA
among project teams and
partners
Project evaluation and
project design
Livestock and
climate change
strategy
development
Enabling
climate finance
Niger, Namibia
Ethiopia, Kenya (3
operations)
Regional Sahel Pastoralism
Support Project I (Burkina
Faso, Chad, Mali,
Mauritania, Niger and
Senegal)
Cameroon

10. Why CSL ? Essential attributes of livestock systems as they relate
to food production and climate change mitigation and adaptation
Herd dynamics
 Mortality, Fertility
 Offtake, price, needs
Mobility
 Local
 Long range (transhumance)
 Information, transport, laws
 Feed and water
Feed and water ration
 Flexibility of composition
 Seasonality

11. Food System resilience
Essential function, time,
levels, and maladaptation
Components of the food system resilience
Tendall et al., 2015

12. Framework for assigning risk management responsibilities
OECD, 2020
In “business as usual” the burden of risk management
will shift more to government in the long-run

13. Schematic diagram of livestock systems responses to drought
impacts, and the points at which four measures act

14. Quantitative analysis of resilience enhancing interventions
Trends in drought index and
modelled adult mortality
rate, fertility rate and
stocking rate (RRSR) for the
Oromia pastoral system
Relative change in meat and
milk production and
household profit, with the
measure for the 5 years
after the start of the
drought. 20% adoption of
each measure.
Index-based
Livestock
Insurance
Early Warning
System
Fodder
Plantation
Range
restoration

15. Strategy for Sustainable and Resilient Livestock Development in
view of Climate Change in the IGAD Region (2022- 2037)
Priority Intervention Area 1: Mechanisms for climate
risk management
Priority Intervention Area 2: Natural resource base
and ecosystem services for livestock production
Priority Intervention Area 3: Livestock production
and income diversification along livestock value
chains
Priority Intervention Area 4: Research, innovation,
and knowledge management
Priority Intervention Area 5: Policy alignment,
coherence, and coordination for transboundary
issues

16. Moving towards low net GHG emissions livestock value chains
Three entry points for GHG emission reduction in the livestock sector
− Increased efficiency and decreased GHG emission intensity through
improved livestock management practices (e.g. feed management,
genetics and animal health improvements, animal health, offtake and
fattening strategies);
− increased soil carbon sequestration through improved grazing
management practices (e.g. adaptative grazing; restoration of degraded
lands); and
− adoption of energy-efficient equipment (e.g. cooling) and production of
renewable energy (e.g. solar and wind) to reduce and displace fossil fuel
energy consumption.
The principles are known but putting livestock on a resilient and low carbon path requires
knowledge, investments, adequate institutional and policy environment.

17. • Carbon credits, carbon-
linked mitigation results
• Requires the monitoring and
reporting of GHG emissions
mitigation or adaptation
program
What is Climate Finance?
Readiness Investment
Result-based
payment
• Assessment of GHG
mitigation opportunity
or adaptation need
• Program planning
(target, technologies,
ownership and financial
arrangements)
• Monitoring Reporting
and Verification - MRV
• New and additional
financial resources
• Wide variety of sources,
public and private, bilateral
and multilateral, including
alternative sources of
finance
• Includes different modalities
grants, loans, equity,
guarantees…
UNFCCC definition:
“Finance that aims at reducing emissions and enhancing sinks of greenhouse gases and aims at reducing
vulnerability of, and maintaining and increasing the resilience of, human and ecological systems to negative
climate change impacts.”

18. Obstacles
restricting climate
finance flow into
the animal protein
sector
High costs of
servicing
smallholders
Competition with
traditional financing
Weak or disconnected
pricing signals along
animal value chains
Lack of data and
statistics to
develop
investment plans
Lack of shared
data and
approaches for
MRV
Animal protein sector
perceived as highly
controversial
Weak policy framework &
absence of a sense of climate
action urgency in the sector
Method to account for Emission intensity reduction under specific conditions
(cap on absolute growth and demonstration of intent to reduce emission
intensity)

19. THANK YOU