Climate-smart agriculture (CSA) is essential for reducing emissions, increasing resilience, and boosting productivity within the agrifood sector. While agriculture contributes significantly to global greenhouse gas emissions and is highly vulnerable to climate change, it receives only 4.3% of global climate finance. To address these challenges, the World Bank has significantly scaled up its investments in CSA, aligning its approach with sustainable development goals to combat hunger and promote climate resilience.
The World Bank’s CSA approach includes three main pillars: generating actionable knowledge, turning analytics into action, and scaling financing through partnerships. These efforts are designed to transform the food system, reduce emissions, and enhance food security. The bank has produced strategic reports, such as the Recipe for a Livable Planet: Achieving Net Zero Emissions in the Agrifood System, which outlines pathways for reducing greenhouse gas emissions while feeding the global population. Country Climate and Development Reports and Climate-Smart Agriculture Investment Plans provide actionable strategies for governments to implement CSA practices and policies.
The bank has financed and advised countries to improve productivity and resilience in farming while reducing emissions. For example, in Colombia, innovative financial instruments are helping farmers adopt climate-smart practices. In Indonesia, a $2 billion fertilizer subsidy program is being restructured for greater efficiency and sustainability. In Bangladesh, a $578 million investment supported the adoption of new technologies by over 127,500 farmers, while Lesotho used similar strategies to assist nearly 24,000 smallholder farmers in arid conditions.
As of 2024, the World Bank’s efforts have helped 4.7 million farmers adopt improved agricultural technologies. Climate finance represented 62% of the bank’s agriculture and food sector lending, up from 51% in the previous year. Projects approved between 2022 and 2024 are expected to avert 174.5 million tons of CO2 emissions during their lifetimes. Initiatives like the Viet Nam Sustainable Agriculture Transformation Project have equipped rice farmers with methods to reduce water use and methane emissions while improving crop quality and farmer incomes.
Partnerships are central to scaling CSA initiatives. Collaborations with organizations such as CGIAR have expanded access to climate services and technologies, benefiting millions of farmers across Africa. The Accelerating Impacts of CGIAR Climate Research for Africa (AICCRA) project, for instance, has reached 7 million farmers, strengthening regional capacities for climate-smart practices. In West Africa, new research hubs are being developed to enhance fertilizer and soil health management.
Innovative financing mechanisms are also emerging as a cornerstone of CSA. Uruguay’s $350 million development policy loan from the World Bank, which includes an interest reduction linked to methane emission targets, exemplifies a novel approach to integrating financial incentives with environmental goals. This model highlights the potential for replicating performance-based financing mechanisms globally.
Moving forward, the World Bank aims to broaden its CSA initiatives through increased investment, enhanced knowledge production, and expanded global partnerships. Strategic frameworks like the Recipe for a Livable Planet and innovative financial tools offer scalable solutions adaptable to diverse contexts. By addressing climate challenges in the agrifood system, the bank’s initiatives represent a significant step toward sustainable and resilient global agriculture.
