Advancing Agricultural Resilience with Climate Adaptation Bonds

26 September | Online

In a landmark event organized by the Agri-PDB Platform in partnership with the Adaptation & Resilience Investors Collaborative (ARIC), Public Development Banks (PDBs) and financial institutions from around the globe convened to discuss the pivotal role of climate adaptation bonds in building agricultural resilience. A highlight of the event was FIRA Mexico’s presentation of a successful case study, showcasing their first issuance of green bonds aimed at supporting the country’s agri-food sector. An impressive lineup of participants attended the virtual session, including ADBC China, TADB Tanzania, MAIIC Malawi, NDB Botswana, APRACA, UNEP, and IFAD, reflecting a global commitment to sustainable agriculture.

Collaboration Across Coalitions for a Sustainable Future

The event, led by two Finance in Common coalitions—the Agri-PDB Platform and ARIC—showcased the collective action in tackling the urgent need for green finance solutions in agriculture. 

Insights from our members: Practical Experiences and Challenges

Public Development Banks from the Global South discussed their challenges in financing climate adaptation. Erick from FIRA Mexico shared FIRA’s success in issuing adaptation bonds, stressing stakeholder engagement and partnerships with AFD and GGGI. Hawabai from TADB Tanzania raised concerns about lowering bond interest rates to support farmers, a concern echoed by others. Sasha from UNEP FI suggested using sustainability-linked bonds to reduce rates when climate goals are met. Pius from MAIIC Malawi, highlighted capacity gaps and bureaucracy as major obstacles, underscoring the need for institutional support alongside financial innovation. 

Driving the Dialogue Forward 

The active participation of NDB Botswana, represented by Ketumile, demonstrated the widespread interest in developing adaptation bonds as a tool for enhancing agricultural resilience. Central banks also play a critical role in this endeavour, as noted by Christian, who highlighted their potential to create regulatory frameworks and incentives that support green finance. 

Looking Ahead: Building Momentum for Future Action 

This event marked a significant step forward in the global effort to finance sustainable agriculture. The Agri-PDB Platform and ARIC, together with their partners, will continue to explore innovative financial tools like climate adaptation bonds to bridge the funding gap for climate resilience in agriculture. 

Stay tuned for more updates and upcoming events where we will dive deeper into green finance, innovative agricultural solutions, and the role of PDBs in achieving global food security. 

Click the  link to view the PowerPoint presentations and recording.