November 28, 2024 | Science | Source |
Introduction: At the 2023 COP28, the Emirates Declaration recognized the critical role of agrifood systems in addressing climate change. With over 160 countries signing the Declaration, it underscored opportunities in agricultural value chains (AVCs) to enable farmers to adopt climate-smart practices. This study, conducted by researchers from IFPRI and the World Bank, examines how AVC structures can overcome challenges in technology access, management changes, and financial resources for smallholder farms, particularly in the Global South.
Key findings: AVCs in the Global South, contributing 73% of global agricultural output, are crucial for promoting farm-level climate-smart practices. They employ tools such as resource provision contracts, training, and financial support to enhance productivity and sustainability. Comprising 80–90% of AVC companies, micro, small, and medium enterprises (MSMEs) are pivotal to these efforts but face challenges, including financial constraints, regulatory barriers, and technical limitations, which hinder their ability to scale climate-smart solutions effectively.
Private-sector engagement drives climate-smart innovations in water management, energy efficiency, and resilient farming practices. Collaborative efforts between science and policy, coupled with supportive regulations and investment incentives, are critical to amplifying the impact of AVCs. Future research should address MSME challenges and integrate technological, economic, and social solutions. Case studies on successful MSME initiatives or policy support mechanisms can refine strategies to scale climate-smart agriculture effectively.
