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How can agricultural policies
best support
Climate-Smart Agriculture Leslie Lipper
EPIC Programme Director, FAO
CSA Webinar
May 15, 2014
www.fao.org/climatechange/epic
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Outline
1. CSA enabling policy frameworks
2. Examples of how policies can support CSA
3. Aligning agricultural and climate change
policies
4. Financing CSA
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• Provide vision
• Articulate objectives
• Outline key areas for action, stakeholders
• Build enabling environment
• Create Incentives
What is the role of policy?
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What is a CSA enabling
policy environment?
Recognizes & accommodates multiple objectives Increasing food security,
Adapting to climate change,
Reducing emissions growth
Evidence based and context specific Identifying potential CC impacts at sub-national level
Facilitates responses based on local conditions and participation
Focusses on overcoming locally relevant barriers to adoption
Copes with uncertainty Focus on risk management
Values adaptive capacity; flexibility
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Other sectoral policies important for CSA:
– Social policies (safety nets, education, health)
– Economic policies (trade orientation, budget
allocation, economic growth priorities)
– Disaster risk reduction (early warning, rapid
response)
– Fishery, forestry policies often separated from
crops & livestock
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CSA enabling policies:
beyond the agricultural sector
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How can policy support
identification and dissemination
of CSA practices?
Support data and analysis to better identify which strategies will
give food security, adaptation and mitigation benefits at local
scale.
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Using updated climate relevant information to support maize
development strategies: areas of increasing rainfall variation
have significantly lower yields
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Estimating yield and mitigation
benefits for practices by agro-
ecological zone
0100200300
Dry
0 100 200 300
Agronomy
Nutrient management
Tillage/residue management
Water management
Agroforestry Moist
Yield: average marginal increase (%/year)
GHG reduction (tCO2e/ha/year) (graph 1ton=100%)
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Translating analysis to action:
seed variety selection & supply
• Seed supply for adapted crops
is limited;
• ICRISAT experimenting with
private sector seed suppliers
to increase supply
• Farmer testing 3 wheat
varieties as part of Bioversity
Seed4Needs crowdsourcing
crop improvement for
adaptation 11
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How can policy support
identification and dissemination
of CSA practices?
• Building enabling environment/incentives to support
adoption of CSA practices/strategies
• Interaction with communities
to enhance information and
decision-making
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• Tenure Security: lack of tenure security and limited property
rights (limits on transfer), may hinder adoption of SLM
• Limited Access to Information, e.g. very low levels of
investment/support for agriculture research and extension.
CC adds uncertainty.
• Up-front financing costs can be high, whilst on-farm benefits
not realized until medium-long term
– Local credit markets very thin
– Local insurance options very limited
Barriers to adoption of CSA
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Adoption Barriers:
Short run trade-offs & long run win-win
B. Investment Barrier to Adoption
Time ==>
Baseline net income Current net income
•Temporary net loss to farmer
•New management practices introduced
Source: FAO 2007
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Overcoming information barriers:
priority actions
• Seasonal forecasts:
Extended coverage, better “translation, and prompt linking of seasonal
forecast info to key outlets (youth, extension, women’s groups, etc.)
• Extension:
More attention/financing/innovation in extension role in information
dissemination to support ag. technology and use of ICT
• Crowd sourcing to improve data sources
(e.g. IIASA global cropland map)
• Enhancing farmer to farmer information
flows particularly in context of adaptation
(e.g. varietal adaptation; indigenous practices)
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CC & AG Policy alignment
• Mainstreaming climate change into agricultural
policy a prominent feature of climate change policy
• CC integration into agricultural policy is still limited
• CC and AG policies not always well aligned due to
failure to recognize and manage trade-offs that
may result in policy contradictions.
• This could potentially hinder AG access to CC
financing.
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Key areas for alignment
• Time frame and objectives
• Role and importance of:
– Traditional knowledge/techniques and science
based technologies
– Diversification vs. specialization
– Intensification and resource use efficiency
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Land use change: still an important source of Ag growth and
key area for aligning CC & Ag policy
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Financing CSA
• Major financing gap to meet current agricultural
policy objectives (w/out CC)
• Public sector investment to agriculture is often not
well targeted to meet objectives
• Both adaptation and mitigation actions in agriculture
are projected to lead to significant increases in
need for financing although there is a large range in
estimates
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Public investment in agriculture
per worker 1980-2007: declining/low in key regions
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Source: SOFA 2012, FAO
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The role of climate
finance for CSA • Can bring a small, but significant share of new finance to
agricultural sector of developing countries.
• Financing mechanisms and institutions are only now being
developed: there is opportunity to shape them to support
CSA
• Needs to support specific features of CSA:
– Financing for long term transitions
– Focus on resilience vs. average productivity gains
– Attention to efficiency of input/resource use
– Focus on adaptive capacity/flexibility
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CSA, UNFCCC & Financing
• Agriculture largely absent in negotiations
• Land use change issue most prominent
• Climate financing instruments separate adaptation
and mitigation (NAPA, NAMAs)
• Some emerging opportunities for CSA:
– Green Climate Fund
– GEF 6
– Biocarbon fund
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New opportunities:
the Global CSA Alliance
• Global alliance to promote upscaling of CSA
• Food security-focused, agriculture-driven and
action-oriented
• Includes FAO, WB, IFAD, WFP, NEPAD, many
individual countries
• Stakeholder consultations presently held
• Launch in September 2014 at the UN Climate
Summit
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Thank you!
www.fao.org/climatechange/epic