This paper examines some of the key technical, institutional, policy and financial responses required to achieve climate-smart agriculture which sustainably increases productivity, resilience (adaptation), reduces/removes Greenhouse Gases (mitigation), and enhances achievement of national food security and development goals. Building on case studies from the field, the paper outlines a range of practices, approaches and tools aimed at increasing the resilience and productivity of agricultural production systems, while also reducing and removing emissions. The second part of the paper surveys institutional and policy options available to promote the transition to climate‐smart agriculture at the smallholder level. Finally, the paper considers current financing gaps and makes innovative suggestions regarding the combined use of different sources, financing mechanisms and delivery systems.