CASA Research recommendations digest for capital providers
3 Climate-smart agricultural technologies & investment: Recommendations
To develop climate-smart agricultural technology & investment capital providers should:
3.1 Be cognizant of the lack of consistent climate risk assessment approaches and the need to provide technical assistance to users at this early stage in the development of frameworks.
3.2 Work with enablers to identify investment-ready climate-smart agriculture technologies. Enablers are those organizations and individuals that play a supporting and enabling role in scaling climate-smart agricultural technology enterprises, creating links between innovators and investors, as well as providing knowledge products.
3.3 Respond to the demand for early stage and angel investing in climate-smart agriculture technologies, which would provide affordable finance and address the needs of smallholders and agribusinesses.
3.4 Be aware that many climate-smart technologies tend to remain in their early stages and have a limited capacity to absorb finance.
3.5 Seek investment opportunities through bundling complementary products and services, while also addressing demand-side constraints for farmers.
3.6 Explore agribusiness models that pivot from selling hardware to providing services to SMEs and small-scale farmers.
CASA has conducted research on the climate risk assessment guidance used by financial institutions and identified investment opportunities in emerging climate adaptation technologies.
To develop climate-smart agricultural technology & investment capital providers should also:
3.7 Impact investors and investment support stakeholders should develop and promote better definitions and standardized impact measurement for both adaptation and nature-based solutions.
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stresses the need to develop a strong business case to help drive capital to adaptation and nature-based solutions. This may involve the use of subsidies. Improving the quality of impact measurements could also help better engage with impact investors.
Updated March 2023
Summary of recommendations for capital providers