Impacting livelihoods of small farmers through Sustainable Finance

Overview

According to a World Bank 2016 estimate, 65% of poor working adults made a living through agriculture. Growth in the agriculture sector is hence considered to be two to four times more effective in raising incomes among the poorest compared to other sectors. Equally important is the fact that small farms (consisting of less than two hectares) account for five out of every six farms in the world and operate 12 percent of all agricultural land and produce roughly 35 percent of the world’s food, according to a study published in World Development in 2021. Ensuring adequate support for small farmers is therefore critical not just to address poverty but also for food security. The latter is especially important at a time when multiple shocks – from COVID-19 related disruptions to extreme weather, pests and conflicts – are impacting food systems and causing food prices to rise. To meet the challenges involved in achieving SDG 2 and 12, it is imperative to scale up investments in small farmers and improve their livelihoods. This calls for leveraging existing financing mechanisms and for developing new ones. This self-guided course uncovers how sustainable finance can help do so.