Article 2.1(c) of the Paris Agreement aims to make finance flows consistent with climate-resilient development. For small-scale agrifood systems, this means bringing together government, small-scale actors and stakeholders across the international climate and food sectors to create a system that supports poverty reduction, food security, nutrition, and healthy natural systems.
For the millions depending on small-scale agrifood systems for livelihoods and nutrition, the reality is that across production, distribution and consumption, climate stresses are ever-present. An unbalanced focus on mitigation over adaptation in the implementation of Article 2.1(c) leaves missed opportunities to support climate-resilient development in agrifood systems.
This paper considers whether and how Article 2.1(c) can support increased investment in adaptation and climate-resilient development for small-scale agrifood systems. Looking at the internal and external ‘consistency makers’ that mobilise and redirect finance flows to climate-resilient investments, the paper finds windows of opportunity for governments to actively pursue Article 2.1(c) implementation through fiscal policy, financial institutions, regulation, information signals and more.
However, the scale of this challenge is enormous. Only by ensuring more equitable cross-border flows of finance can investment be mobilized and shifted to bring about the transformative change required to make agrifood systems resilient to climate shocks. More broadly, further efforts are required to navigate the rules and constraints of the current international financial architecture to increase investment in adaptation and climate-resilient development.
