1. Aslihan Arslan Natural Resource Economist, EPIC-ESA FAO Climate Smart Agriculture at country level: lessons from recent experience

2. Background and rationale for the Project Improving agriculture: key solution to food insecurity and climate change problems Ag growth is most effective means of poverty reduction Projected CC impacts require adaptation measures in agriculture Often mitigation co-benefits are generated through measures to increase food security and adaptation and these can bring an additional source of finance CSA is building agricultural development policies, strategies and investments to increase food security with needed adaptation, capturing financial benefits from potential mitigation co- benefits

3. CSA is… - Context specific - Evidence based - Assessing synergies/tradeoffs across multiple objectives CSA is not.. - One practice that is always applicable - Prioritizing mitigation in LDC context

4. 2009 FAO initiates program of work on FS and CC for Copenhagen Indicating considerable potential to capture synergies and link CC finance to agriculture 2010 FAO Development of CSA background paper for Hague Highlighting importance of resilience and institutional framework 2010 Initiation of discussion between EC, FAO & potential natl. partners on CSA project Driven by need for action at country level 2011 Project development; background technical studies Project plan is a framework of activities to achieve major building blocks of CSA; Designing country specific implementation plans undertaken with national partners in initial phase; Total budget: 5.3 mil. EUR (3 years; 3 countries) EC funding: 3.3 mil. EUR 2012 Project initiated Background on the project

5. Activities include a range of country initiation activities: identification of national focal points; identifying priority areas for CSA work; linking to natl. research partners; initiating analyses of synergies and tradeoffs/barriers to adoption using existing datasets; development of detailed country logframe; support to MOA staff to attend UNFCCC meeting

6. The Building Blocks of the Project 1.Assessing the situation: identifying locally viable CSA practices 2.Understanding barriers to adoption of CSA practices 3.Managing climate risk 4.Building coherent policies 5.Guiding investment

7. Are CSA practices being adopted? If not, why not? How do Benefits & Costs of practices compare? CSA Strategy: Technical, Institutional, and Economic Priorities Investment proposals Policy Levers for Adoption Risk Management Analysis Test Input constraints Test Institutional constraints Benefits: Food Security, Adaptation, and Mitigation Costs Understanding Barriers to Adoption Guiding Investment Building Coherent Policies Risk-reducing tools: safety nets, insurance, diversification What are relevant CSA Practices in a country? Increasing ag. returns, reducing vulnerability & emissions growth Identify synergies and tradeoffs of relevant practices Assessing the situation Define the baseline to determine benefits of CSA activities Managing Climate Risk Role of information under a changing climate Risk profile of relevant CSA practices Test Financial constraints Financing

8. 1.Assessing the situation Some CSA “best bets” so far: agro-forestry with and without CA; fertilizer use efficiency; legume rotations; Defining the baseline and metrics 2.Understanding barriers to adoption of CSA practices Limited, late, unreliable input supply Delayed returns; opportunity cost of residue; labor constraints CC driven uncertainty/risk affects adoption 3.Managing climate risk Assessing potential of existing instruments (Cash Transfers) Modeling efficiency/costs of alternative instruments (OECD) 4. Building coherent policies Working within existing agricultural policy structures (e.g. ASWAp and CAADP plans; national ag. action plan (Vietnam) 5. Guiding investments: Assessing additional CC benefits (adaptation and mitigation), additional investment costs – and potential to link climate finance

9. Thank you!