“The urgency is undeniable – climate change and the erosion of biodiversity present significant threats, particularly to the smallholder farmers whose livelihoods are so intimately tied to natural resources”
– International Fund for Agricultural Development (IFAD).
Countries the least responsible for climate change often bear the brunt of its consequences. While rural communities and marginalised groups suffer the most from climate change, conflict, and financial exclusion, they are crucial actors in achieving climate and development goals.
To empower them, IFAD urges focusing on smallholder adaptation, integrating ecological and human needs, and mobilising climate finance to create resilient, inclusive, and sustainable agrifood systems. Collaboration among stakeholders is pivotal to tackling the intertwined challenges of climate change, food insecurity, and rural poverty.
IFAD’s Climate Action Report 2024 captures the interwoven challenges of climate change, ecological destruction, disease, pollution, and socioeconomic activities. Their interconnectedness exacerbates each other and heightens the threat to the environment and human wellbeing. Through successful case studies, the report showcases IFAD’s work and the pressing need for investment in sustainable, inclusive and resilient rural livelihoods.
Advancing climate resilience through rural communities’ adaptation
The report identifies significant challenges faced by rural communities where climate instability, ecological degradation, and poverty intersect. As such, unpredictable weather, declining yields, and biodiversity loss threaten smallholder livelihoods and food security. Climate-induced inequalities exacerbate tensions in regions like the Sahel and Horn of Africa, further destabilising communities. Small-scale farmers also face barriers in securing loans and investments, hindering their ability to adopt sustainable practices.
IFAD allocated over 37% of its Twelfth Replenishment (IFAD12) resources to climate finance by the end of 2023, investing roughly $1.4 billion in resilient, sustainable and inclusive rural development. The development of the Adaptation for Smallholder Agriculture Programme (ASAP+) has been pivotal in mobilising resources for climate-resilient initiatives, building on existing financing, rendering forecasts reliable and accessible, and increasing gender equality. For instance, the injection of US$ 11 million in an Ethiopian program leveraged over US$100 million of existing funding.
IFAD integrated biodiversity-focused measures across its projects through nature-based solutions and agroecological frameworks that promote ecosystem restoration, reduce dependency on chemical inputs, and enhance carbon sequestration. For instance, in Djibouti, the Soil and Water Management Programme (PROGRES) combats pasture degradation through innovative water harvesting and ecosystem restoration techniques, directly benefiting over 11,000 households through an increase in water access and availability, economic activities, the productivity of herds, and an improvement in climate resilience.
The report also underscores that building resilience is not only about improving agricultural yields but also about addressing systemic vulnerabilities such as food insecurity, local and national economy, and water access and availability. Investments can tackle these aspects, for instance, in creating home gardens, leading trainings to improve local skills, and constructing and rehabilitating water points. Investments in smallholder farmers and rural communities are essential to achieving broader climate and development goals, ensuring that agriculture remains a viable and sustainable livelihood amidst growing climate pressures.
Integrating people, nature, and food systems
As ecological sustainability and food security intersect, it is essential to integrate people and nature to build food systems capable of withstanding climate impacts.
Agroecology emerges as a transformative approach, emphasising diversified production, sustainable farming practices, and community engagement. It combines traditional knowledge and modern science to optimise productivity while conserving natural resources. For instance, an IFAD-funded rural development project in Bahia, Brazil, combines agroecological techniques with capacity-building initiatives benefiting over 75,000 households, boosting nutrition and promoting ecosystem restoration.
Women, youth, and Indigenous Peoples often face compounded vulnerabilities due to climate change. By engaging these groups in project design and decision-making, IFAD ensures that solutions are equitable, inclusive and culturally relevant. For example, the PROGRES program enabled local communities to develop a hydraulic and pastoral development plan and led trainings to enhance their skills in restoration, environmental conservation and livestock rearing.
IFAD’s integrated food system approach combines ecological restoration with nutrition-focused strategies. Projects often include training on sustainable agricultural practices, improving both food security and environmental health. By balancing ecological and human needs, IFAD ensures long-term sustainability for communities most affected by climate change.
Bridging the climate finance gap
The financial demands of climate adaptation and mitigation in rural communities are substantial, yet resources remain insufficient. The report underscores the critical need to mobilise climate finance and foster partnerships to address this gap effectively.
IFAD aims to increase by 25% its investments for IFAD13 compared to IFAD12, mobilising $2 billion. This funding will be directed toward inclusive projects that target the specific needs of smallholder farmers, particularly in fragile and climate-vulnerable regions.
Partnerships with entities like the Adaptation Fund, the World Food Programme and private-sector players are instrumental in leveraging additional funding. These collaborations enable the scaling of innovative projects that address climate challenges while supporting economic resilience. For example, Haiti’s Inclusive Blue Economy Project illustrates IFAD’s innovative approach to climate finance. By leveraging public-private partnerships through fostering sustainable small-scale fishing, training in rice seed production techniques to harmonise and complement their respective know-how, planning of the maintenance costs of coastal resources and the establishment of committees, this initiative promotes climate-resilient livelihoods in coastal communities.
Additionally, IFAD highlights the importance of private-sector involvement in bridging the climate finance gap. By aligning public and private interests, IFAD facilitates investments in climate-smart agriculture, renewable energy, and infrastructure development. These efforts not only address immediate climate risks but also create opportunities for economic growth and poverty reduction. For instance, the Partnerships for Irrigation and Commercialisation of Smallholder Agriculture (PICSA) project, created with multi-stakeholders financing, resulted in both mitigation and adaptation strategies, the enhancing of food security through access to nutritious food and providing nutrition education, livelihood diversification, the introduction of water-saving technologies and enabling informed decisions from local communities.
Lastly, building institutional capacities is key to managing and deploying climate finance effectively. IFAD works closely with local governments and organisations to ensure that resources are allocated efficiently and that projects are implemented sustainably. Training programs and capacity-building initiatives play a crucial role in empowering local actors to take ownership of climate adaptation strategies.
Written by David Mingasson, SIANI reporter