Like so many, we at One Acre Fund are disappointed with some of the outcomes of COP29. With just $300bn in climate finance committed from the budgets of richer nations, there is still a gulf to cross in order to reach the $1.3tn needed for poor countries to adapt and build resilience to climate shocks and the impacts of changing weather patterns.
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Ahead of COP, we calculated that $153 billion would be needed for smallholder farmers alone to build effective resilience. With less than double that committed from public coffers for all sectors, not just agriculture, it’s clear that the total amount pledged is woefully inadequate. The remaining balance that will get us to $1.3tn is expected to come largely from the private sector; the mechanisms surrounding this are, however, vague.
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Our $153bn figure is an estimate, but it’s based on data collected from the communities of the 4.8m farmers we serve, who are experiencing life-changing impacts from investment in their business and livelihoods. Working directly with smallholder farmers gives us an in-depth understanding of what it will take to build lasting and impactful resilience to the effects of a changing climate. It doesn’t all need to come from public money, but with investors focused on shorter term financial returns limiting our options for private sector investment to niche cash crops, and nascent payments for ecosystem services, much of the transition cost will need to be subsidised.
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However, as the Environmental Defense Fund, SDG2 Advocacy Hub and many others at Action On Food have frequently argued, pledging billions means nothing if those billions are hard to access and lead to limited impact for food systems. If we’re going to see real change, finance needs to reach the sectors with the highest potential for impact across sustainable development goals. Smallholder farmers are at the top of that list. Our estimates show that $153bn of investment could yield $403bn of impact for farmers, their communities and the environment. This is a no-brainer for climate mitigation and resilience, poverty reduction, biodiversity preservation, and food security. Now more than ever it’s essential that we demonstrate to funders the return on investment generated by investing in smallholder farmers - for people, for communities, for the environment, and for the whole world.
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That’s why in 2025 we’ll continue to advocate for more investment in smallholders, refining our estimates of what’s needed, and setting bold goals for One Acre Fund and the sector to generate social and climate returns on investment.
Next week at UNCCD's COP16 I'll be continuing to bang the drum for increased investment, laying out One Acre Fund's case for getting finance to smallholders. If you're in Riyadh and want to discuss these ideas further, get it in touch - I'd love to arrange a meeting.
Colin Christensen Michelle Kagari Jeremy Osir
