NITI Aayog, MoA&FW and FAO Join Forces to Build Climate-Resilient Agrifood Systems in India

In a significant move towards securing India's food security and environmental well-being, the National Institution for Transforming India (NITI Aayog), the Ministry of Agriculture and Farmers' Welfare (MoA&FW), the Food and Agriculture Organization of the United Nations (FAO), and a multitude of key stakeholders came together on January 18th and 19th for the Investment Forum for Advancing Climate Resilient Agrifood Systems in India.

This transformative initiative aims to develop a comprehensive investment and partnership strategy, bringing together the government, private sector, farmer organizations, and financial institutions to build a more resilient and sustainable agricultural landscape in the face of climate change.

The Urgency of Action: Agriculture and Climate Change

Prof. Ramesh Chand, Member, NITI Aayog, underscored the alarming reality of agriculture's contribution to climate change. In India, agriculture accounts for over 13% of total greenhouse gas emissions, highlighting the need for immediate action. However, he also emphasized the potential of agriculture to play a role in carbon sequestration through initiatives like tree plantation on farmland. \

Prof. Chand advocated for a new economic analysis framework that considers the impact of agricultural activities on natural resources and future generations, moving beyond solely financial metrics. Aligning India's efforts with the larger UN approach to tackling contemporary and long-term environmental challenges was also emphasized.

Addressing the Needs of Small and Marginal Farmers: A Multi-Stakeholder Approach

Manoj Ahuja, Secretary, MoA&FW, emphasized the crucial role of a multi-stakeholder approach in addressing climate challenges that impact India's farmers, particularly the 85% who are small and marginal. Highlighting the spatial and temporal variations in climate patterns affecting agriculture, Ahuja stressed the need for localized responses and investment structures that incentivize sustainable practices.

Financial Solutions for a Food-Secure Future

Shombi Sharp, UN Resident Coordinator, delivered a stark reality check, stating that "without an answer to financial crisis, there can be no answer to food crisis." With food demand projected to soar by 50% by 2050, he emphasized the urgency of scaling up investments in climate-resilient agriculture to ensure future generations have enough food.

He reiterated the UN's support for climate initiatives like India's Year of Millets and expressed the organization's commitment to being a valuable partner in India's journey towards resilience.

De-Risking Investments for Sustainable Change

Takayuki Hagiwara, FAO Representative in India, applauded the Indian government's leadership in building climate-resilient agrifood systems. He underscored the critical need for strengthened partnerships and investments to achieve tangible results. Hagiwara highlighted the importance of "de-risking" investments, emphasizing the crucial aspects of feasibility, sustainability, labor availability, environmental concerns, and the role of women in agrifood systems. FAO's expertise in these areas is readily available to support India in developing robust and climate-resilient systems.

Focused Discussions and Collaborative Action

Over the two days, the forum facilitated diverse discussions across six key areas:

• Climate-resilient agriculture: Sharing experiences and charting pathways for adaptation and mitigation.

• Digital infrastructure and solutions: Leveraging technology for improved monitoring, data analysis, and decision-making.

• Financing climate-resilient agrifood systems: Exploring domestic, global, and private sector investment opportunities.

• Climate-resilient value chains: Building robust and sustainable food supply chains from farm to fork.

• Production practices and inputs for climate resilience: Promoting climate-smart agricultural practices and technologies.

• Gender mainstreaming and social inclusion for climate resilience: Ensuring equitable participation and benefits for all stakeholders, particularly women and marginalized communities.

A Roadmap for a Sustainable Future

The forum acknowledged the profound implications of climate change for India, especially for its vulnerable rural population dependent on agriculture. Recognizing the susceptibility of India's rainfed agriculture to extreme weather events and soil degradation, the forum emphasized the need for significantly larger investments from global climate finance, domestic budgets, and the private sector.

The Investment Forum serves as a crucial platform for identifying national priorities and policy frameworks for financing climate-resilient agrifood systems. It explores diverse investment avenues, including equity, grants, bonds, and innovative financing mechanisms like blended finance and venture capital. Furthermore, the forum fosters regional collaboration on climate-smart food system initiatives and paves the way for resource consolidation, knowledge sharing, and advocacy campaigns.

With nearly 200 attendees representing government agencies, financial institutions, research institutes, and international organizations, the forum laid a strong foundation for collaborative action. Moving forward, the stakeholders will work together to translate the discussions into concrete action plans

Outcomes and Future Prospects:

The forum identified national priorities and policy platforms for financing climate-resilient agrifood systems, exploring various investment avenues such as equity, grants, green bonds, and guarantee-based financing. It emphasized regional collaboration and resource consolidation to maximize the impact of climate-smart food system initiatives.

Conclusion:

As climate change profoundly affects India's agriculture-dependent rural population, the Investment Forum emerges as a pivotal platform to channel investments, foster partnerships, and advocate for large-scale climate-resilient agrifood systems. The engagement of diverse stakeholders reflects a collective commitment to addressing the challenges and opportunities presented by climate change in the agrifood sector.