The geographical distribution of climate finance for agriculture

From 2010 to 2012, climate finance in the agricultural sector shifted dramatically to increase public funds for adaptation (USD 155 to 314 million) and decrease private funds for climate change mitigation (USD 289 to 48 million), primarily due to declining carbon prices in 2010 and 2011 and countries’ commitments to fast-start finance under the UNFCCC. Emerging economies such as China, South Africa, Brazil, Uzbekistan and Mexico were the main beneficiaries from carbon-market finance for mitigation, while Sub-Saharan Africa was the main beneficiary when finance shifted to adaptation. The bulk of mitigation finance in 2010-2012 from carbon markets went to reducing N2O emissions from fertilizer production, followed by using agricultural residues as a biomass energy source, or as a source of biogas and reduced tillage projects. Ethiopia was the single largest recipient of dedicated adaptation finance (USD 25 million in 2010, 2011 and 2012) A broader approach to climate finance that supports sustainable intensification, more resilient agricultural practices and low emissions development over the long-run would support more stable and evenly distributed investment