Landscape of Climate Finance for Agrifood Systems

Climate finance for agrifood systems is critically low, representing only 4.3% of total project-level climate finance in 2019/20. The report highlights a massive investment gap, noting that current flows must increase at least sevenfold to meet conservative transition needs. While agriculture and forestry dominate project-level funding, essential mitigation areas like food loss and low-carbon diets are severely underfunded. The analysis reveals a heavy reliance on public funding (85%) and significant geographic disparities, with East Asia and the Pacific receiving the most finance, while South Asia and Latin America remain underserved relative to their emissions and vulnerability. The report advocates for repurposing harmful agricultural subsidies and leveraging private capital to scale climate-resilient and low-carbon food systems.

• Climate finance for agrifood systems is extremely low, accounting for only 4.3% of total global project-level climate finance in 2019/20, with an annual average of USD 28.5 billion.
• There is a significant funding gap; current climate finance must increase at least sevenfold to meet the most conservative estimated needs, which range from USD 212 billion to USD 1.3 trillion annually through 2030.
• Project-level finance is concentrated in agriculture (42%) and forestry (41%), while critical mitigation segments such as food loss, waste, and low-carbon diets receive less than 1% of tracked investment.
• Venture capital (VC) investments in agrifood tech are primarily focused on mitigation and developed markets; only 20% of total VC in agrifood tech targets climate solutions, totaling USD 4.8 billion annually.
• Geographic distribution of project-level finance is skewed, with East Asia and the Pacific receiving the most (USD 10.4 billion), while South Asia and Latin America and the Caribbean are underserved relative to their GHG emissions contributions.
• Public sources provide the vast majority of project-level climate finance for agrifood systems, accounting for 85% (USD 24.2 billion) in 2019/20, while private sources contribute only 12%.
• Adaptation finance for agrifood systems reached USD 7.3 billion in 2019/20, with agriculture receiving over two-thirds of this amount, much of it flowing to non-OECD countries in Sub-Saharan Africa.
• Debt is the most used financial instrument for project-level finance (44%), followed by grants (38%), while equity remains underused at 4%.
• There is a significant opportunity to increase climate finance by repurposing the estimated USD 670 billion in annual public subsidies for agriculture and fisheries, many of which currently support harmful practices.

APA

Chiriac, D., Vishnumolakala, H., & Rosane, P. (2023). Landscape of Climate Finance for Agrifood Systems. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Landscape-of-Climate-Finance-for-Agrifood-Systems.pdf

Chicago

Chiriac, Daniela, Harsha Vishnumolakala, and Paul Rosane. Landscape of Climate Finance for Agrifood Systems. Climate Policy Initiative, 2023. https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Landscape-of-Climate-Finance-for-Agrifood-Systems.pdf.

Wikipedia

{{cite report |last1=Chiriac |first1=Daniela |last2=Vishnumolakala |first2=Harsha |last3=Rosane |first3=Paul |title=Landscape of Climate Finance for Agrifood Systems |publisher=Climate Policy Initiative |date=July 2023 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Landscape-of-Climate-Finance-for-Agrifood-Systems.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{chiriac2023landscape, author = {Chiriac, Daniela and Vishnumolakala, Harsha and Rosane, Paul}, title = {{Landscape of Climate Finance for Agrifood Systems}}, institution = {Climate Policy Initiative}, year = {2023}, month = jul, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2023/11/Landscape-of-Climate-Finance-for-Agrifood-Systems.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }