At a time when the transformation of food systems in the face of climate change requires unprecedented levels of funding and financial innovation, the International Fund for Agricultural Development (IFAD), a UN specialized agency and international financial institution, has both increased and exceeded its goals in concretely delivering financing to rural and vulnerable populations. As of today, IFAD has invested more than US$1.28 billion in projects supporting small-scale farmers to adapt to climate change and produce food sustainably for the period 2022-2024. This represents 47 per cent of the Fund’s Programme of Loans and Grants (PoLG), and exceeds the target set at 40 per cent.
IFAD’s Climate Action Report 2024, entitled “Green Horizons: A Year of Climate Action for People, Resilience and Biodiversity” was released today, highlighting IFAD’s strengthened commitment to supporting the world’s most vulnerable small-scale farmers. The report documents IFAD’s efforts to help these farmers adapt to climate change impacts, protect ecosystems, and promote sustainable agriculture.
“Climate change affects us all, but small farmers — who grow nearly half our food — are on the front lines with the least resources to adapt,” said IFAD President Alvaro Lario. “These farmers aren’t just food producers; they are the backbone of rural economies, pillars of global food systems, and guardians of biodiversity. Investing in their success isn’t just moral — it’s smart economics. That’s why IFAD is ramping up support and channeling more funds to rural communities.”
In response to the growing urgency to take climate action, IFAD decided to boost its spending for climate-related adaptation and mitigation projects from 25 per cent of its PoLG during the 2019- 2021 period to 40 per cent from 2022 to 2024. IFAD’s next financing cycle, from 2025 to 2027, will increase the share of climate-related activities in its loans and grants even further, to 45 per cent.
The Report shows that IFAD spent US$502.7 million in climate adaptation and mitigation finance during 2022-2023. Showing strong acceleration, the latest figures reveal that in 2024 so far IFAD invested more than US$750 million of climate finance for IFAD projects supporting small-scale farmers to build their resilience to a changing climate.
In 2022-2023, 78 per cent of the projects were designed to improve adaptive capacity of small-hold farmers. Projects in East, West, Central and Southern Africa received US$ 330.4 million of the total.
IFAD’s Climate Action Report 2023 is filled with real-life examples of the projects that IFAD funds across the world, from sustainable water and pasture management to ecosystem restoration. For example, the Pro-Semi-arid Project in Bahia in Brazil promotes agrobiodiversity through backyard gardens and creole seeds and breeds. The project works with 20 traditional collective grassland communities, or fundos de pasto, to provide training on land restoration and biodiversity conservation, re-establish soil cover with native vegetation and develop nurseries for the production of seedlings. It also promotes sustainable agroforestry systems using native species and combat bush fires. It reached 75,000 rural families.
IFAD is also collaborating with the European Space Agency (ESA) to use cutting edge satellite data and remote sensing technologies to transform how small-scale farmers adapt to climate change. For example, in Kyrgyzstan, satellite-powered pasture maps are giving pastoral communities the power to make informed decisions on sustainable grazing, preserving critical land resources and boosting livestock productivity. Farmers can plan ahead, managing their grazing practices to maintain lush and productive pastures.
Small-scale farmers on land of up to five hectares produce almost half of the world’s food, and this share is much higher in many developing countries and reaches up to 70 per cent in Africa. They are essential for global and local food security, nutrition and poverty reduction. Small-scale farming provides food and a livelihood to a significant part of the three billion people living in rural areas. Yet, they are on the front line of climate change, which is estimated to reduce crop yields by up to a quarter by the end of the century.
Read the report: IFAD’s Climate Action Report 2024
