Item 3, presentation by Takayoshi Kato (OECD) on Private-sector engagement for climate-resilient agribusinesses during the GREEN Action Task Force Annual Meeting 2023.
1. PRIVATE-SECTOR ENGAGEMENT IN GREEN ECONOMY
TRANSITION IN EECCA:
CASE STUDIES FROM AGRIBUSINESS IN CENTRAL ASIA
Takayoshi KATO, OECD
For Agenda Item 3. Thematic discussion:
Private-sector engagement in green economy transition in EECCA
11 May 2023, GREEN Action Task Force Annual Meeting
Document:
Climate-resilient agribusiness in Central Asia:
Selected examples of the Water, Energy, Land-use Nexus approach
2. • Agribusiness in Central Asia:
– a vital pillar of the economy, but vulnerable to impacts of CC,
– could also be a driver towards water, energy, and food security
and climate resilience.
• Concrete examples from agribusiness companies
– Generating multi-faceted commercial, climate, and environmental
benefits on the ground.
– Highlighting some opportunities to scale up / replicate such good
practice across the region and across different sectors
• Leading to brief case studies:
– Climate-resilient agribusiness in Central Asia: the Water, Energy, Land-use
Nexus approach https://oe.cd/well-nexus-case-studies
Context
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3. • Water, Energy, Land-use Nexus for a climate resilient Central Asia (funded by
Germany’s IKI): Preparation phase (Sep 2021 – June 2022).
• Met EBRD bankers and their clients from Central Asia.
• Collected 15+ inspiring stories about agribusiness companies and their partners.
• Selected 4 case studies based on the following:
– Multiple benefits for water, energy, and/or food security.
– Positive impacts on the environment.
– Creation of a new market and/or jobs in local communities.
The journey so far:
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4. 4
Selected case studies
Hydroponic greenhouses
saving water use and reducing
land and water pollution
Lentils production –
contributing to GHG reductions,
soil fertilisation and climate
resilience
Sugar production –
contributing to water saving
and sugar self-sufficiency
Blended finance mechanisms –
Promoting access to finance in
support of climate resilience
5. 5
Benefits of the case studies for water, energy, food
and environmental security & economic resilience
Water
security
Improved water resource management through adoption of efficient technologies,
recycling practices and reduced pollution through discharges
Energy
security
Efficient energy use; improved energy dependence; shift to low carbon energy
production, including renewables;
Food
security
Increased domestic production and decreased reliance on imports; enhanced resilience
of agriculture to climate hazards (e.g. droughts)
Environmental
security
Reduced use of pesticides and related pollution; increased production of crop types
suited to local environmental and climatic conditions; GHG mitigation by reduced use of
fossil fuel-based fertilisers
Economic
resilience
Higher value products; longer growing period; economic diversification; increasing
exports; creating local markets and job opportunities
6. 6
How can we further scale-up and replicate “climate-
resilient” agribusiness models?
More evidence base on the benefits
• Accounting for the multiple benefits of water, energy, food, and environmental security.
• Informing financial, economic & environmental cost-benefit analysis in project
proposals.
• Setting the right benchmark for technologies/solutions to be promoted.
Suitable financial solutions (e.g. blended finance)
• Reducing capital costs and mitigating credit risks for the private sector.
• Covering technical assistance components (e.g. capacity development, consultancy
support) for agribusiness companies and their partner banks.
Technological and business-related capacity development
• Developing business plans and drafting loan applications.
• Assessing environmental, climate, and social risks of available agribusiness solutions.
• Need to retain expertise after the support ends.
7. • These case studies provide a “seed of inspiration” to promote
businesses that are climate-resilient and generate benefits on the
nexus between water, energy and land-use.
• A starting point for the main phase of the Water, Energy, Land-use
Nexus project, with concrete examples.
• Further work envisaged to (e.g.):
– Enhance evidence base on the water, energy, and land-use benefits of
such business models.
– Provide further pilot investments in such agribusiness with replication and
upscaling potential (EBRD).
– Analyse policy frameworks to unlock finance from various sources.
Ways forward
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8. Contacts for further information:
• Takayoshi Kato
takayoshi.kato@oecd.org
• Matthew Griffiths
matthew.griffiths@oecd.org
• Lupita Johanson
lupita.johanson@oecd.org
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Thank you