Towards policies for climate change mitigation: incentives and benefits for smallholder farmers

Climate finance provides an opportunity to facilitate the adoption of agricultural practices that support climate mitigation and adaptation. This report evaluates how governments can use climate finance to lift barriers for the adoption of sustainable agricultural practices or the promotion of policies that alter the economic incentives for smallholder farmers. Currently, the agricultural sector is at a disadvantage when competing for climate finance, compared with the industry and energy sectors. This report develops a number of proposals on how climate finance can support policies that seek to overcome investment barriers.