Potential Areas of Investment in Climate-Smart Agriculture in South Asia

Arun KC, Pramod Aggarwal and Paresh B Shirsath*CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS)

BISA-CIMMYT, New Delhi

Agriculture in South Asia:

• Scope: >260 million hectare agricultural land, contributes about 15% of total GDP, and employs > 50% population in the region

• Smallholders and subsistence farming • Tremendous progress in last 4 decades

Food consumption increased from 1900 kcals to > 2500 kcals Average GDP growth >6% Little food imports now

• Pressure on Agriculture: increasing population and rising economic growth - need to meet the present and future demand for food security

• Climate change: exacerbating the problem, hindering efforts to rise agriculture production and food security

Drought: 70% land Floods: 12% land Cyclones: 8% land Frost: Northern regions Heat: Frequent at many

places Coastal salinity ingression One of the most

vulnerable regions to climate change

Food security and poverty are the key issues

Climatic Stresses in South AsiaHigh CV of rainfall in Pakistan; northwest and south India

Climate Change and Agriculture South Asia is a major hotspot

• Climate change likely to reduce agricultural production by 10-50% by 2050 and beyond, if we do not start adapting now.

• Increased production variability due to more frequent droughts, floods, and heat events

• Large implications for intra- and inter-national trade.

Agricultural adaptation and mitigation measures in INDCs

Potential Areas of Investment in CSA in South Asia

A. Investment in Research 1. Identification, evaluation and development of

portfolios of CSA interventions based on climatic risks and farming systems in different agro-ecological zones

2. Assessment of business models and financial mechanisms for scaling out CSA

3. Modelling micro-economic behavior of agricultural farms/communities to design incentives for CSA implementation

4. Identification of business cases on CSA for private sector

5. Big data generation for enhanced assessment of CC impacts and design adaptation and mitigation options

B. Investment in development and Capacity building 1. Infrastructures: Decentralized weather

stations, Information and Communication Systems (ICT), climate-smart value chain and advance research stations

2. Tools and models: ICT tools (e.g. crowed sourcing and cloud computing system), Decision Support Systems (e.g. computer based models and Climate-Smart Prioritization and Investment Tools)

3. Capacity building: Investment in capacity building activities and infrastructures

C. Investment Opportunities for Private Sector 1. Sustainable Value Chain: Value addition, energy use

efficiency, reduce post-harvest losses 2. ICT Tools and Systems: for dissemination of climate

information, agro-advisories and help line3. Agri-Inputs: seeds, nutrients, agro-chemicals, farm

machinery, water and energy efficient technologies 4. Financial Sectors: saving and credits, agriculture insurance,

• Research on CSA is evolving: Major fund on agricultural R&D is absorbed by customary agricultural R&D projects

• Growing recognition of CSA by new Agricultural Development Policies and Plans: e.g. Agricultural Development Strategy (ADS) of Nepal and National Mission for Sustainable Agriculture (NMSA) of India

• Mainstreaming CSA into Agriculture Development Policies and Plans: through Official Development Assistance (ODA) and Bilateral and Multilateral funds (such as USAID, DFID, IFAD, WB and ADB)

• Initial research on CSA: from Public funding (Agricultural Development Budget), Climate Change Fund (supported by UNFCCC), Climate Investment Fund (Pilot Program for Climate Resilience), INGO/NGOs and Private Sectors funding

Current R&D on CSA in South Asia

Climate-Smart Village Programme Potential of convergence of different investments at local level

For more details visit www.ccafs.org

1. CSV is an integrated farmer participatory approach

2. CSV can consolidate and converge a range of investment activities at local level

3. CSV to integrate CSA- technologies, institutions and village development plans

4. CSV to facilitate collaboration among diverse partners

5. CSV as operational model for scaling- up: local adaptation and mitigation plans, development and industry partners

Key investment opportunities in a CSV

End of 2016

2010 2012 2014 20160

200400600800

10001200140016001800

Num

ber

of C

SVs

Climate-Smart Villages in South Asia

Typical Partners of CSVs

• Farmer groups• Buyers• Input suppliers• Rural ICT company• Insurance company• Meteorological agency• Local governments, CBOs, NGOs• Researchers (NARS, Universities,

CGIAR)

Conclusions

1. Large potential of investment in CSA exists in South Asia: Still big challenge to divert funding to CSA activities from different national and international sources

2. Public and private finance needs to be integrated to deliver successful CSA activities at different levels (i.e. farm, landscape and market)

3. Participatory program such as CSV would have huge potential for consolidation and convergence of range of financial option at a local level

Thank you !

Initial achievements of CSV program

1. Evidences of CSVs: Impact on yield, income, inputs use and GHG emissions. Source: Jat et al. 2014, Aryal et al. 2015, Sapkota et al. 2014, Aryal et al. 2014 Khatri-Chhetri et al, 2015, Sapkota et al 2015a, Sapkota et al. 2015b

2. Development of partnership: Strengthening collaboration among researchers, local government and farmers organizations for participatory evaluation of diverse CSA technologies in farmers’ fields.

3. Investment and scaling out/up: International organizations, national and state governments have shown keen interest to invest and scale out CSV approach in various locations, Example: India (Maharashtra, Haryana), Nepal (IFC, CDKN) and Bhutan.

4. Development of portfolio of interventions in the CSVs: integration of seed, water, nutrient, energy, insurance and ICT