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In this presentation Jane Feehan from the European Investment Bank shows the EIB & lending priorities, why climate-smart agriculture is something to be invested in and which type of investment this special form of agriculture needs whilst prioritising the basics, and strengthening natural resource management for resilience and productivity.
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Investment needs for Climate-Smart Agriculture
The European Investment Bank is the bank of the European Union.
Our shareholders are the 28 Member States of the EU.
We are the world’s largest multilateral lender by volume, providing finance and expertise for sound and sustainable investment projects within and outside the EU.
In 2013 the Bank is expected to invest EUR 65-70bn of which at least 25% in climate action projects.
16 November 2013 1European Investment Bank
Jane FeehanNatural Resources SpecialistEuropean Investment Bank
10/04/2023
Outline
1. Overview of EIB & lending priorities
2. Climate-smart agriculture: Deploying traditional principles of good farming towards future challenges
3. Investment needs: Prioritising the basics, and strengthening natural resource management for resilience and productivity
European Investment Bank 2
EIB Group – Overview
• The EIB Group is the largest Multilateral Development Bank in the world. Its mandate is to assist with the integration, balanced development and economic and social cohesion of the European Union
• EIB was created by the Treaty of Rome in 1958. Shareholders are the 28 EU Member States.
• Lending in 2012 amounted to EUR 52 billion.
EIB: The European Investment Bank is the European
Union‘s long-term financing institution. The Bank acts
as an autonomous body set up to finance capital
investments furthering European integration by
promoting EU policies.
European Investment Bank10/04/2023 3
Advisory Committee on Fisheries and Aquaculture4
European Investment Bank
Finance at work for climate action
We support low-carbon and climate resilient growth in Europe as well as in developing and emerging countries outside Europe
We are a catalyst mobilizing finance for climate action investments
We develop innovative financing instruments for sustainable solutions
5European Investment Bank
The EIB delivers about EUR 4 billion annually to the agriculture, forestry and fisheries / aquaculture sector. About 5% of this is in Africa, Asia and Latin America.
Responding to European Commission 2012 Communication: ‘The EU approach to resilience: Learning from food security crises’
Examples of projects financed:
France and Germany: John Deere R+D. EUR 220 m loan, 2010
Morocco: Plan National en Economie d’Eau en Irrigation: EUR 42.5 m loan, 2011
Africa, Latin America, Asia: Althelia Climate Fund: Equity investment of EUR 25 m, 2012
Ukraine: MHP and Astarta grain and soybean processing and storage. EUR 50 and EUR 85 m loans
Africa: FEFISOL and Rural Impulse I and II. Microfinance funds targeting the agricultural sector.
6European Investment Bank
EIB in the Agriculture and Forestry sectors
10/04/2023
Outline
1. Overview of EIB & lending priorities
2. Climate-smart agriculture: Deploying traditional principles of good farming towards future challenges
3. Investment needs: Prioritising the basics, and strengthening natural resource management for resilience and productivity
European Investment Bank 7
Deploying traditional principles of good farming towards future challenges
Climate-Smart Agriculture offers a fresh perspective on the value and importance of sustainable agricultural practices and good animal husbandry.
Unprecedented challenges lie ahead. It is these, not past challenges, that must be prepared for.
Focus on resilience and productivity.
8European Investment Bank
10/04/2023
Outline
1. Overview of EIB & lending priorities
2. Climate-smart agriculture: Deploying traditional principles of good farming towards future challenges
3. Investment needs: Prioritising the basics, and strengthening natural resource management for resilience and productivity
European Investment Bank 9
Characterising the investment needs of climate-smart agriculture
There is a wide range of investment needs, both from the public and private sector. Governments: Pre-commercial investment support to
make rural communities attractive places to live, work and invest in; Set framework for adequate pricing of resources
Private sector: Must face relevant resource security challenges within supply chain, but need to also commit expertise and resources to addressing the systemic resource pressures.
10European Investment Bank
Prioritising the basics: Strengthening natural resource management for resilience and productivity
Areas of investment for a more productive and resilient – and ultimately climate-smart – agriculture and forestry sector:
Basic Infrastructure: Improved food storage, market access, waste management, efficient processing
Water management: More efficient and appropriate irrigation systems; agronomy to preserve soil moisture. Location location location…
Land: Sustainably intensify areas that are already under agricultural production. Restoration of degraded land
Soil: Re-scaling, and reconnecting nutrient cycles, fighting erosion, phasing out incentives for practices which degrade soil.
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28/02/2013 12European Investment Bank Group
Source: Teixeira et al (2013) Agricultural and Forest Meteorology 170, 206-215
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Source: Sheffield et al. (2011) Drought: Past problems and future scenarios (Routeledge)
Prioritising the basics: Strengthening natural resource management for resilience and productivity
Areas of investment for a more productive and resilient – and ultimately climate-smart – agriculture and forestry sector:
Basic Infrastructure: Improved food storage, market access, waste management, efficient processing
Water management: More efficient and appropriate irrigation systems; agronomy to preserve soil moisture. Location location location…
Land: Sustainably intensify areas that are already under agricultural production. Restoration of degraded land
Soil: Re-scaling, and reconnecting nutrient cycles, fighting erosion, phasing out incentives for practices which degrade soil.
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28/02/2013 16
Diminishing reserves
The GRACE satellites have recorded massive water loss from aquifers around the world, as great as 4cm per year (equivalent water depth) in some regions.
Source: Outlook on Agriculture and Drought. Nature 501, 26 Sept 2013
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New EU growth and jobs initiatives
Innovation and Skills
SME Access to Finance
Resource Efficiency
Strategic Infrastructure
RDI:
A-F extremely knowledge intensive
Climate Action:
A-F most weather dependent; challenged by CC
SME’s:
A-F characterized by rural SME’s
Economic and social cohesion:
Access to food market essential
+ Resource constrained (e.g. land) => RDI critical for better food security
European Investment Bank Group28/02/2013 18