Transforming agrifood systems is essential for climate resilience, but a critical barrier stands in the way: a massive lack of investment. A new analysis by FAO and UNDP of National Adaptation Plans (NAPs) shows that while 97 percent of countries report severe climate impacts on their agrifood sectors, only 20 percent of adaptation finance reaches the agrifood sector, constituting a mere one percent of total global climate finance.
This gap is worsened by a persistent underestimation of needs within national climate commitments. According to a preliminary FAO analysis of commitments in new generation Nationally Determined Contributions (NDCs), the finance needs for agrifood systems remain significantly underreported. The evidence is stark: NDCs capture only a fraction of the necessary finance, a planning gap that helps explain why real-world climate flows to agrifood systems amount to just one-twelfth of what is needed.
This disconnect underscores a central question: how can strategic public funding be leveraged to mobilize the substantial private investment needed to build resilience?
The SCALA programme, led by FAO and UNDP, is demonstrating a powerful model for doing exactly that. By working hand-in-hand with governments and institutions, SCALA helps align financial flows with national climate goals, catalyzing significant co-investment to close this gap.
SCALA’s approach represents a strategic shift from conventional project financing. The programme focuses not just on direct implementation, but also on addressing the systemic barriers that hinder investment in climate-resilient agrifood systems.
By generating evidence in agrifood value chains, strengthening national institutions, and co-designing de-risking instruments, SCALA works with country partners to create an enabling environment that stimulates both public and private finance. This foundational support helps transform national climate plans into pipelines of bankable projects, moving beyond short-term solutions to foster sustainable market transformation. This model has proven effective, having already contributed to mobilizing over USD 170 million in climate finance and demonstrating a scalable pathway to bridge the investment divide.
Building the foundation for investment
The journey begins with robust, country-specific evidence. SCALA supports partners in conducting systems-level assessments and value chain analyses to pinpoint specific climate vulnerabilities and identify profitable adaptation and mitigation practices. In Cambodia, collaboration with the Royal University of Agriculture identified concrete investment opportunities in the cassava and cashew sectors, providing a data-driven foundation for engaging agribusinesses and financial institutions.
This evidence is then translated into actionable plans and bankable project concepts. In Ethiopia, SCALA supported the Ministry of Agriculture in developing two UNDP-led concept notes for the Green Climate Fund, focusing on the water-energy-food nexus and nature-based solutions. This process ensures that national climate priorities are translated into a language that investors understand.
A critical component of SCALA's work is de-risking private sector engagement. This involves creating standards, piloting certification schemes, and facilitating connections with financial institutions.
In Costa Rica, work with the Costa Rican Livestock Federation led to a pilot deforestation-free beef standard, while collaboration with the National Forestry Financing Fund is establishing a Payment for Ecosystem Services mechanism to incentivize soil carbon sequestration.
Tangible results and mobilized capital
The effectiveness of this focus on creating investable opportunities is reflected in concrete outcomes across SCALA countries, driven by strong national ownership.
In Colombia, SCALA's technical support contributed to a project concept that secured USD 25 million from the International Climate Initiative for the 'Macizo ReNace' landscape restoration initiative, developed with national partners. Similarly, in Costa Rica, the programme provided support that helped leverage USD 5.8 million in GEF funding for a UNDP-led project on 'Sustainable livestock in the Arenal-North Huetar Conservation Area', designed with insights and outcomes from SCALA activities in the country.
A pivotal mechanism for attracting resources is the SCALA Private Sector Engagement Facility (PSEF), which provides targeted analytical support to unlock investment. In Somalia, a PSEF-conducted value chain analysis provided the evidence base for a USD 95 million FAO-led Green Climate Fund project—the largest of its kind in the country. This public investment is now expected to attract an additional USD 25 million from private and impact investment funds.
Similarly, a PSEF study in Equatorial Guinea directly informed the government’s USD 95 million Just Transition Strategy, integrating the coconut value chain as a strategic component. To date, the PSEF has provided over USD 700,000 in grants for feasibility studies, which have in turn paved the way for millions in subsequent investment, including USD 1.6 million for biogas development in the Solomon Islands.
A proven model for scaling impact
The results from countries within the SCALA programme demonstrate a replicable blueprint for closing the climate finance gap. By systematically addressing the barriers to investment—through evidence, bankable projects, and de-risking—SCALA provides the missing link between national climate ambitions and tangible financial commitments. The continued scaling of this model can help redirect capital flows towards the transformative climate action our agrifood systems urgently need.
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