Presentation Fin4Ag S50 by Kai Windhorst

1. The Southern African farmers’ challenge:
climate finance for agriculture
Kai Windhorst
Fin4ag - 17 July 2014 – Nairobi, Kenya

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The challenge
 Climate Finance objectives: Increase food security, strengthen
climate change resilience and improve livelihoods of the rural
poor while reducing emissions or increasing the GHG production
efficiency.
Terminology:
 Reducing Emmissions
 Increasing GHG Production efficiency
 Linkages to Value chain finance

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Climate Finance meets Value chain Finance
How can climate finance increase value-chain growth and
competitiveness and therefore contribute to value chain finance?
Climate Finance can:
• Identify areas in value chains were financing is a constraint
• Build farmer financial knowledge while paying for environmental
services
• Understand the opportunities and constraints in value chain
financing (e.g. policies, aggregation) as they are similar to each
other
• Introduce a performance based-metric (Carbon) for farming
quality
• Introduce a clear system for aggregation and monitoring of
finance flows

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A guide to mitigation approaches
 Two main approaches to
mitigation planning in developing
countries: Low Emission
Development Strategies (LEDS)
and Nationally Appropriate
Mitigation Actions (NAMAs)
 Policy, institutional and
technical elements

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Climate finance
Climate Policy Initiative, 2013

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Climate finance - implications
 Mitigation received the largest share of climate finance
 Public and private sector involvement are necessary
 Public finance should be used to leverage private investment
 Risks should be addressed

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Synergies adaptation & mitigation
Agricultural measures that:
 Reduce soil erosion;
 Reduce leaching;
 Conserve soil moisture;
 Increase crop rotations and diversity;
 Reduce temperature extremes, shelter;
 Reduce / avoid land use change.
Specific examples:
 Grazing management
 Integrated rice and livestock systems
 Agroforestry

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Development pathway of climate finance
1. Analysis of framework conditions and policy
gaps  Country sets overall policy goal:
2. National infrastructure is put in place:
inventory, registry, approval and MRV procedures
3. Set of actions that reduce emissions below
BAU and form part of NAMAs are identified
4. A concrete project or a whole sector NAMA
applies for national approval and finance
7. National NAMA registry
Agriculture Livestock
National goal
Institutional &
operational
procedures
MRV
system
Farmers
Financing
vehicle
National public
finance
Inter. Climate
finance
Private climate
finance
5. NAMA approved MRV system validated  seeking finance
6. Project/NAMA financed and implemented
8. International NAMA registry
Farmers
Mitigation activities
NAMAdevelopmentpathway

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UNIQUE forestry and land use
 Sectoral consulting firm with a focus on forestry and agriculture
• 40 staff members
• Regional offices in Africa in Uganda and Cameroon
• Conducted more than 100 climate change and land use projects
• Selected references:
 Kenya Agricultural
Carbon Project (KACP)
 Mainstreaming CSA
 CAADP-Climate
adaptation best practices
in 7 countries

10. KONTAKT
CONTACT
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79098 Freiburg, Germany
Tel: +49 - 761 20 85 34 - 0
Fax: +49 - 761 20 85 34 - 10
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