Landscape of Climate Finance for Agrifood Systems 2025

Global climate finance for agrifood systems reached USD 94.9 billion in 2021/22, representing 7.2% of total global climate finance. While flows have increased since 2019/20, the report finds that investment is critically misaligned, with a massive funding gap of USD 1.1 trillion annually required through 2030 to align the sector with climate goals. Growth is heavily concentrated in domestic public investment in China and Europe, while private capital remains largely absent in sub-Saharan Africa and Latin America and the Caribbean. Mitigation finance is dominated by energy-related projects like agrivoltaics, while adaptation finance remains heavily reliant on public grants. The report calls for a strategic mix of financial instruments and policy reforms to unlock capital for high-impact solutions such as soil carbon management and nature-based solutions.

• Global climate finance flows to agrifood systems rose from USD 28.5 billion in 2019/20 to USD 94.9 billion in 2021/22, increasing its share of total global climate finance from 3.6% to 7.2%.
• There is a severe funding gap in the sector; approximately USD 1.1 trillion is needed annually through 2030 to align agrifood systems with climate goals, which is twelve times the current level of finance.
• Domestic public resources are the primary driver of funding, accounting for 73% of total flows in 2021/22 (USD 69.3 billion), with the vast majority of this growth concentrated in China and Western Europe.
• Private finance grew nearly sixfold to USD 19.2 billion in 2021/22 but remains concentrated in high-income economies, largely bypassing sub-Saharan Africa and Latin America and the Caribbean due to perceived risks and a lack of de-risking tools.
• Mitigation finance (USD 44.9 billion) is the largest share of flows but is heavily skewed toward energy projects; 71% of these flows (USD 31.8 billion) are associated with solar-PV installations on agricultural land and fish farms in China.
• Adaptation finance reached USD 13 billion in 2021/22, but its relative share of total agrifood finance declined to 14%. It remains heavily dependent on public grants and low-cost debt, with private investment being negligible.
• Dual-benefit finance, targeting both mitigation and adaptation, surged nearly sixfold to USD 37 billion in 2021/22, with agrifood systems receiving over half of all dual-benefit finance tracked across all sectors.
• The 'Food and Diets' sector is the most underfunded, receiving only USD 0.4 billion (0.5% of total flows), which requires a 125-fold increase to meet estimated annual needs of USD 52.8 billion.
• Debt remains the dominant financial instrument at 62% of total flows, while equity rose to 20% and grants fell to 18% as a relative share, raising concerns about the support for smallholder-focused interventions.

APA

Vishnumolakala, H., Faucheux, L., & Olutoke, J. (2025). Landscape of Climate Finance for Agrifood Systems 2025. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/05/Landscape-of-Climate-Finance-for-Agrifood-Systems-2025.pdf

Chicago

Vishnumolakala, Harsha, Léa Faucheux, and Jide Olutoke. Landscape of Climate Finance for Agrifood Systems 2025. Climate Policy Initiative, 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/05/Landscape-of-Climate-Finance-for-Agrifood-Systems-2025.pdf.

Wikipedia

{{cite report |last1=Vishnumolakala |first1=Harsha |last2=Faucheux |first2=Léa |last3=Olutoke |first3=Jide |title=Landscape of Climate Finance for Agrifood Systems 2025 |publisher=Climate Policy Initiative |date=May 2025 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2025/05/Landscape-of-Climate-Finance-for-Agrifood-Systems-2025.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{vishnumolakala2025landscape, author = {Vishnumolakala, Harsha and Faucheux, Léa and Olutoke, Jide}, title = {{Landscape of Climate Finance for Agrifood Systems 2025}}, institution = {Climate Policy Initiative}, year = {2025}, month = may, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/05/Landscape-of-Climate-Finance-for-Agrifood-Systems-2025.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }