Financing adaptation for resilient livelihoods under food system transformation: the role of Multilateral Development Banks.

Climate change is imposing a transformative process on agricultural and food systems, threatening the livelihoods of people dependent upon them which includes a large share of the world's poor people. Transformative adaptation that addresses the risks and vulnerabilities to livelihoods that climate change imposes is essential for effective and inclusive transformation of food systems. Financing that is adequate, accessible and appropriate is essential to realizing these objectives. Multilateral Development Banks (MDBs) are already playing an important role in financing transformative adaptation in the agri-food sector and are well-placed to address some of the existing shortcomings. Expanding public sector climate finance and incentivizing private sector investments is needed to attain adequate levels of financing. Reconsidering the rules and procedures for obtaining public sector finance and the capacity to utilize already existent administrative structures, as well as better targeting of activities and communities is important for accessibility. Appropriate finance requires use of mechanisms that address characteristics of the investment, including riskiness, delayed returns, high social values and new and unproven activities. Utilizing blended finance integrated with development finance can generate financing appropriate to the investment needs. Some positive shifts in these directions are already being undertaken by MDBs but more is required.

Towards food systems transformation-five paradigm shifts for healthy, inclusive and sustainable food systems.

Food systems must serve different societal, public health and individual nutrition, and environmental objectives and therefore face numerous challenges. Considering the integrated performances of food systems, this paper highlights five fundamental paradigm shifts that are required to overcome trade-offs and build synergies between health and nutrition, inclusive livelihoods, environmental sustainability and food system resilience. We focus on the challenges to raise policy ambitions, to harmonize production and consumption goals, to improve connectivity between them, to strengthen food system performance and to anchor the governance of food systems in inclusive policies and participatory institutions. Taken together, these shifts in paradigms shape a new discourse for food system transformation that will be capable to respond to current and future policy challenges.