Increasing the amount, effectiveness, and accessibility of international finance and investment is necessary to enable sustainable agriculture, sustainable forest management, and forest conservation and restoration. The Climate Policy Initiative reports a generally positive trajectory in climate finance for agriculture, forestry, land use, and fisheries (AFOLU) from 2013 to 2020. However, there are notable gaps in data collection, particularly concerning public domestic financial flows and both domestic and international financing from the private sector. The majority of tracked AFOLU climate finance derives from public sources, with only a small portion attributed to philanthropic organizations on the private side. In Africa, public finance is six times greater than private finance. The East Asia and Pacific region leads in receiving climate finance for AFOLU, with Sub-Saharan Africa following. The International Fund for Agricultural Development highlights a growth in climate finance over the past decade, reaching USD 632 billion in 2020, although the rate of increase slowed from 24% between 2015/2016 and 2017/2018 to 10% between 2017/2018 and 2019/2020. Additionally, this amount accounted for merely 2.5% of the total tracked climate finance in 2020, while the AFOLU sector was responsible for 25% of global emissions in 2021. This indicates that AFOLU sectors are underfunded in comparison to other sectors, such as renewable energy generation.
Increasing the amount, effectiveness, and accessibility of international finance and investment is necessary to enable sustainable agriculture, sustainable forest management, and forest conservation and restoration. The Climate Policy Initiative reports a generally positive trajectory in climate finance for agriculture, forestry, land use, and fisheries (AFOLU) from 2013 to 2020. However, there are notable gaps in data collection, particularly concerning public domestic financial flows and both domestic and international financing from the private sector. The majority of tracked AFOLU climate finance derives from public sources, with only a small portion attributed to philanthropic organizations on the private side. In Africa, public finance is six times greater than private finance. The East Asia and Pacific region leads in receiving climate finance for AFOLU, with Sub-Saharan Africa following. The International Fund for Agricultural Development highlights a growth in climate finance over the past decade, reaching USD 632 billion in 2020, although the rate of increase slowed from 24% between 2015/2016 and 2017/2018 to 10% between 2017/2018 and 2019/2020. Additionally, this amount accounted for merely 2.5% of the total tracked climate finance in 2020, while the AFOLU sector was responsible for 25% of global emissions in 2021. This indicates that AFOLU sectors are underfunded in comparison to other sectors, such as renewable energy generation.