system remains low, constituting only 3% of total global climate finance for both mitigation and adaptation. Miti- gation finance for the agrifood sector was just $14.4 billion during 2019–2020 – a mere 2.2% of total climate finance and 2.4% of overall mitigation finance. By contrast, the renewable energy sector garners 51% of climate financ- ing, while low-carbon transportation receives 26%. To reduce emissions from food systems by half by 2030, annual investments in agrifood emissions must increase to $260 billion. Addi- tionally, the International Food Policy Research Institute suggests that an annual investment of up to $350 billion will be required by 2030 to transform global food systems, align with climate goals, enhance adaptation and fulfil other Sustainable Development Goals. This financial investment is critical to implementing the necessary changes in the food sector to tackle both envi- ronmental sustainability and social equity challenges. One solution is to develop innova- tive financial instruments to support regenerative agriculture. Nature- based climate bonds and blended finance models can mobilise large- scale investments by linking financial returns to verified sustainability out- comes. To accelerate sustainable food system transformation, the finance sector must develop and scale innovative financial products that provide capital access and mitigate the risks associated with the shift to climate-smart and equitable practices throughout the food value chain. Blended finance leverages public, philanthropic and private capital to de-risk investments, making it easier to fund projects otherwise considered too risky or unprofitable. This approach helps restore degraded lands and sup- port sustainable agricultural practices. The 100 Million Farmers: Break- through Models for Financing a Sustainability Transition report pro- poses a capital stack that combines
innovative and blended finance mecha- nisms with cross-value chain support to help 100 million farmers adopt regener- ative practices, enhancing productivity while reducing environmental impacts. By fostering partnerships between governments, financial institutions and agricultural stakeholders, these models provide farmers with access to the capital, knowledge and resources needed to implement sustainable practices. Such initiatives, backed by targeted investments and risk mitigation strat- egies, aim to create a tipping point for sustainable food systems by 2030, delivering long-term benefits for soil health, biodiversity, water conserva- tion and farmers’ livelihoods. Partnerships for systemic change Achieving a just transition requires
Agriculture is responsible for 37% of global greenhouse gas emissions and uses 70% of the world’s water resources. 37 % 70 %
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