COP29: Investing in resilience through China-IFAD partnership

World leaders are gathering in Baku, Azerbaijan, for the United Nations Climate Change Conference (COP29) to work towards an ambitious climate financial goal for climate change adaptation. The International Fund for Agricultural Development (IFAD), a specialized United Nations agency and international financial institution, urges policymakers to recognize that investing in small-scale farmers' climate resilience is not merely a cost but a wise investment decision yielding significant economic and social returns.

Despite the critical role of smallholder farmers in the quest for global food security, IFAD estimates that there is still a staggering annual funding gap of up to $75 billion to support their adaptation to climate change, especially in developing countries. Currently, global climate finance allocated to small-scale agri-food systems remains precariously inadequate. In 2019 and 2020, the average annual funding was only $5.53 billion, constituting just 0.8 percent of total climate finance across all sectors. This symptomatic underinvestment persists when approximately 735 million people face hunger, exacerbated by climate-related challenges such as increased heat, droughts, and extreme weather events. Projections indicate that climate change could drive an additional 132 million people into poverty by 2030.

The implications for agricultural productivity are profound and alarming. By 2035, we may see food inflation rise by 50 percent due to climate-related factors and by the end of the century, climate change could reduce crop yields by as much as 25 percent.

All nations have buckled up and are contributing to their part in the fight against hunger. IFAD has been a partner of choice in this fight. For instance, since 1980, IFAD has been investing in rural people and empowering them to improve food security and nutrition in China. In recent years, we have witnessed an alarming increase in extreme weather events, with high temperatures and heavy precipitation becoming more frequent and severe. Last year, the climate conditions were particularly challenging, characterized by a warm and dry climate alongside significant flooding and drought disasters. According to the China Meteorological Administration, the national average temperature reached an all-time high, while the number of rainfall days was among the lowest on record.

Recognizing the critical role of smallholder farmers – who make up 90 percent of the agricultural workforce and cultivate 70 percent of arable land – the Chinese government has prioritized support for these farmers to adapt to climate change. The National Climate Change Adaptation Strategy 2035, released in 2022, emphasizes investment in climate-resilient infrastructure and the development of provincial adaptation action plans to promote grassroots resilience initiatives, particularly in vulnerable regions.

IFAD in China continues to complement the efforts of the government by partnering to strengthen the resilience of smallholder farmers against climate shocks. Our investments focus on helping farmers adopt sustainable practices, improve productivity, and enhance food security. For example, in Biandangou Town, Ningxia Hui Autonomous Region, we have supported a sustainable agricultural model that integrates field corn cultivation, beef cattle raising, and organic fertilizer production. This cyclical approach not only enhances ecological sustainability but also provides economic returns for the farmers. Also, in Hunan Province, our support for straw returning technology reduces pollution from straw burning and minimizes soil water evaporation, better preparing the land for the next planting season and enhancing resilience against dry conditions.

China continues to play a significant role as a contributor to climate resilience beyond its borders. According to the World Resource Institute, between 2013 and 2022, climate finance flowing from China to other developing countries amounted to nearly $45 billion, accounting for 6.1 percent of the total climate finance provided by developed nations in the same period.

In contributing beyond its borders, another important instrument in our work is the China-IFAD South-South and Triangular Cooperation (SSTC) facility, which we use to leverage China's knowledge and expertise in climate resilience to benefit other developing countries, as well as enabling China to learn valuable lessons from these countries. Last year, the facility launched a project in Kenya, partnering with Egerton University and Nanjing Agricultural University to pilot climate-resilient horticultural technologies, such as tomato grafting and smart LED grow lights. These initiatives aim to improve productivity and provide technical training to rural communities in Nakuru County.

The task ahead is arduous, but not insurmountable. We recognize that at IFAD and that is why we have agreed with the Chinese government that in the coming years, our joint work will promote environment- and climate-smart practices to strengthen rural ecological conservation and restoration and build climate resilience. We will also focus on leveraging China's expertise, knowledge and innovation, especially for promoting environmentally friendly practices for agriculture and food systems transformation at regional and global levels.

I am hopeful that through collaboration and dedication, political will, and adequate investment, we can build a more resilient future for smallholder farmers globally. Together, we can ensure that the most vulnerable are not left behind in the face of climate change.