Climate Finance: an instrument for sustainable agrifood system transformation in Sierra Leone

Agrifood systems are closely linked to climate change, both as a vehicle to mitigate and adapt to it and as a contributor. In 2021, they accounted for 74% of Sierra Leone’s total carbon dioxide emissions (FAO STAT). The country’s reliance on rain-fed farming methods increases the country’s vulnerability to rising temperatures and extreme weather shocks. On the other hand, forests – a critical part of agrifood systems – are estimated to remove 2% of Sierra Leone’s carbon emissions (UNCCD). Encouraging sustainable agrifood systems is key to limiting climate change and supporting farmers to adapt to its consequences. Accessing climate finance to invest in sustainable agrifood systems is an urgent necessity for Sierra Leone.

“Climate finance currently falls short of its targets in Sierra Leone,” says Saeed Bancie, FAO Representative in Sierra Leone. “The country must increase the quantity, targeting and efficiency of its climate finance to meet its international climate change commitments”.

In the context of the Food and Agriculture Organization of the United Nations (FAO) and the European Union’s support to the Government of Sierra Leone on sustainable agrifood systems, the Ministry of Finance requested the FAO Investment Centre to organize a two-day training on climate finance. More than 60 representatives from government, different ministries and agencies, development partners, commercial banks and microfinance institutions and civil society organizations participated in Freetown on July 10th and 11th 2024.

Sellu McCarthy, Head of the Climate Finance Unit in Sierra Leone emphasized the value added of the training given the scale of the challenge: “Our National Determined Contribution (NDC) highlights that Sierra Leone requires $2.76 billion to combat climate change. We recognize the extent of the issue and hence the value of this training in highlighting and filling knowledge gaps.”

Experts from FAO, the UN Resident Coordinator’s Office, the IMF and others discussed with the participants the impact of climate change on agriculture and the sector’s contribution to climate change. They also highlighted the country’s climate finance needs for environmentally sustainable food systems. The training summarized sources of international climate finance and the role of data and monitoring in accessing climate finance. Several sessions focused on carbon markets and their role as a potential source of revenue to finance mitigation efforts, with examples from forestry such as protecting primary forests and restoring mangroves.

The training also focused on the role of the private sector in climate finance. Two dedicated sessions focused on how climate change affects financial institutions, increasing risks but also presenting opportunities for diversifying their portfolios through climate finance. The sessions presented examples of how commercial banks and microfinance institutions could incorporate climate considerations in their operations and access climate-related concessional financing.

“The Government is highly committed to addressing climate issues and the EU will stand by its side,” said Gerald Hatler, Head of Cooperation, Delegation of the European Union to Sierra Leone. “With strengthened national knowledge to access climate finance, generate data and improve governance, monitoring and reporting practices, Sierra Leone will be able to combat deforestation, promote sustainable agricultural practices and improve food security in the country”.

Increasing climate finance reflects the government’s policy priorities in its flagship strategy, Feed Salone, supported by the EU, FAO and Agrinatura. Feed Salone lists climate resilience as an overall objective and cross-cutting issue and includes standalone pillars on agricultural finance and climate-smart agriculture and climate-resilient technologies.