investment needs for climate-smart agriculture

Investment needs for Climate-Smart Agriculture

The European Investment Bank is the bank of the European Union.

Our shareholders are the 28 Member States of the EU.

We are the world’s largest multilateral lender by volume, providing finance and expertise for sound and sustainable investment projects within and outside the EU.

In 2013 the Bank is expected to invest EUR 65-70bn of which at least 25% in climate action projects.

16 November 2013 1European Investment Bank

Jane FeehanNatural Resources SpecialistEuropean Investment Bank

10/04/2023

Outline

1. Overview of EIB & lending priorities

2. Climate-smart agriculture: Deploying traditional principles of good farming towards future challenges

3. Investment needs: Prioritising the basics, and strengthening natural resource management for resilience and productivity

European Investment Bank 2

EIB Group – Overview

• The EIB Group is the largest Multilateral Development Bank in the world. Its mandate is to assist with the integration, balanced development and economic and social cohesion of the European Union

• EIB was created by the Treaty of Rome in 1958. Shareholders are the 28 EU Member States.

• Lending in 2012 amounted to EUR 52 billion.

EIB: The European Investment Bank is the European

Union‘s long-term financing institution. The Bank acts

as an autonomous body set up to finance capital

investments furthering European integration by

promoting EU policies.

European Investment Bank10/04/2023 3

Advisory Committee on Fisheries and Aquaculture4

European Investment Bank

Finance at work for climate action

We support low-carbon and climate resilient growth in Europe as well as in developing and emerging countries outside Europe

We are a catalyst mobilizing finance for climate action investments

We develop innovative financing instruments for sustainable solutions

5European Investment Bank

The EIB delivers about EUR 4 billion annually to the agriculture, forestry and fisheries / aquaculture sector. About 5% of this is in Africa, Asia and Latin America.

Responding to European Commission 2012 Communication: ‘The EU approach to resilience: Learning from food security crises’

Examples of projects financed:

France and Germany: John Deere R+D. EUR 220 m loan, 2010

Morocco: Plan National en Economie d’Eau en Irrigation: EUR 42.5 m loan, 2011

Africa, Latin America, Asia: Althelia Climate Fund: Equity investment of EUR 25 m, 2012

Ukraine: MHP and Astarta grain and soybean processing and storage. EUR 50 and EUR 85 m loans

Africa: FEFISOL and Rural Impulse I and II. Microfinance funds targeting the agricultural sector.


EIB in the Agriculture and Forestry sectors

10/04/2023

Outline





Deploying traditional principles of good farming towards future challenges

Climate-Smart Agriculture offers a fresh perspective on the value and importance of sustainable agricultural practices and good animal husbandry.

Unprecedented challenges lie ahead. It is these, not past challenges, that must be prepared for.

Focus on resilience and productivity.


10/04/2023

Outline





Characterising the investment needs of climate-smart agriculture

There is a wide range of investment needs, both from the public and private sector. Governments: Pre-commercial investment support to

make rural communities attractive places to live, work and invest in; Set framework for adequate pricing of resources

Private sector: Must face relevant resource security challenges within supply chain, but need to also commit expertise and resources to addressing the systemic resource pressures.


Prioritising the basics: Strengthening natural resource management for resilience and productivity

Areas of investment for a more productive and resilient – and ultimately climate-smart – agriculture and forestry sector:

Basic Infrastructure: Improved food storage, market access, waste management, efficient processing

Water management: More efficient and appropriate irrigation systems; agronomy to preserve soil moisture. Location location location…

Land: Sustainably intensify areas that are already under agricultural production. Restoration of degraded land

Soil: Re-scaling, and reconnecting nutrient cycles, fighting erosion, phasing out incentives for practices which degrade soil.


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Source: Teixeira et al (2013) Agricultural and Forest Meteorology 170, 206-215


Source: Sheffield et al. (2011) Drought: Past problems and future scenarios (Routeledge)

Prioritising the basics: Strengthening natural resource management for resilience and productivity

Areas of investment for a more productive and resilient – and ultimately climate-smart – agriculture and forestry sector:

Basic Infrastructure: Improved food storage, market access, waste management, efficient processing

Water management: More efficient and appropriate irrigation systems; agronomy to preserve soil moisture. Location location location…

Land: Sustainably intensify areas that are already under agricultural production. Restoration of degraded land

Soil: Re-scaling, and reconnecting nutrient cycles, fighting erosion, phasing out incentives for practices which degrade soil.


Thank you!

[email protected]


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Diminishing reserves

The GRACE satellites have recorded massive water loss from aquifers around the world, as great as 4cm per year (equivalent water depth) in some regions.

Source: Outlook on Agriculture and Drought. Nature 501, 26 Sept 2013

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New EU growth and jobs initiatives

Innovation and Skills

SME Access to Finance

Resource Efficiency

Strategic Infrastructure

RDI:

A-F extremely knowledge intensive

Climate Action:

A-F most weather dependent; challenged by CC

SME’s:

A-F characterized by rural SME’s

Economic and social cohesion:

Access to food market essential

+ Resource constrained (e.g. land) => RDI critical for better food security

European Investment Bank Group28/02/2013 18

investment needs for climate-smart agriculture

Economy & Finance