Loss and damage fund announced at COP27 a step in the right direction
Developing countries are hit hardest by the of consequences climate change despite contributing the least to it. That is why we welcome the agreement at COP27 to establish a loss and damage fund for vulnerable countries.
Through our work with agribusinesses in developing countries we’ve witnessed the devastating impact of extreme weather on smallholder farmers whether they’re facing floods in the Philippines or drought in Kenya. One event like this can wipe out their livelihoods and without additional support many are left to face poverty and hunger.
We hope smallholders, who are often some of the world’s poorest people, will benefit from this fund when it comes into operation. We are also glad to see the world committing to the Global Goal on Adaptation and aiming to double adaptation finance at COP28 next year.
At the CFC, we’ve seen how adaptation techniques can both build climate resilience among smallholders and provide them with vital new revenue streams. We are increasingly investing in agribusinesses that support farmers to thrive in a volatile climate while also contributing to a reduction in greenhouse gas emissions.
For example, in the Philippines we have invested in cacao-trader Kennemer International Foods. The company trains its network of farmers how to intercrop cacao beans on their smallholdings to reduce their reliance on a single commodity, generate additional long-term income and nurture biodiversity. Kennemer also links smallholders to carbon credits markets through its reforestation programme.
CFC Managing Director Amb. Sheikh Mohammed Belal said: “Climate change harms the world’s poorest the most, including smallholder farmers who are particularly vulnerable to its damaging effects. Agreements at COP27 on a loss and damage fund and progress towards the Global Goal on Adaptation are steps in the right direction.”
He added: “We have already begun building adaptation programmes into our investments as we seek to develop sustainable value chains from the ground up. We are committed to enhancing the climate resilience of smallholders while boosting their incomes in an environmentally-friendly way. We hope this fund will also play its part in supporting smallholders to farm sustainably."
Read more about how we’re investing in adaptation strategies and increasing smallholder resilience in our Annual Review 2021. And to discuss how your organisation can invest in viable agribusinesses in developing countries, contact us.