Climate adaptation finance for agriculture

In recent years, the global conversation on climate change has increasingly emphasised the importance of climate adaptation measures alongside mitigation efforts.

Donor and investor guidance (and accompanying six-page Executive Summary) for stakeholders on best practices for identifying, assessing and measuring investment opportunities in adaptation-focused agriculture investment funds.

Based on extensive research, benchmarking of existing taxonomies, and stakeholder interviews, the guidance aims to address the need for more standardised assessment approaches, local context-specific investment strategies, and measurable and comparable impact standards.

The document suggests a three-part framework for assessing investment opportunities in adaptation-focused investment funds:

1. Consider local context & geography - prioritise funds employing science-based climate risk assessments, targeting investments in highly vulnerable geographies, and emphasising local expertise within the fund's team.
2. Take a solutions-led approach - invest in funds integrating science-based climate adaptation solutions such as those provided by FAO, the Adaptation SME Accelerator Project (ASAP), and the UN Climate Technology Centre & Network (CTCN), while ensuring alignment with your Theory of Change and impact objectives.
3. Assess intentionality & additionality - prioritise funds capable of assessing intentionality at the investee level and evaluating additionality at the fund level through alignment with existing industry frameworks.