African Integrated Climate Risk Management Programme

African Integrated Climate Risk Management Programme

Project Overall Goal

The programme will build, strengthen and scale up the resilience and adaptive capacities of smallholder farmers and rural communities of the seven Sahelian country members of the Great Green Wall (GGW). It will provide capacity building and institutional development on integrated climate risk management by reducing obstacles to accessing agricultural insurance for governments and smallholder farmers, thereby enhancing resilience. The integrated program is an innovative approach   which brings together strategic partners such as  IFAD, the African Development Bank (AfDB), The World Food Program (WFP) , The African Risk Capacity (ARC) to address all  climate related agriculture risks before they occur with a. better climate information and early warning systems (EWS) b.   better adaptation measures. It also aims to reduce loss and damage with  agricultural insurance ( micro and macro insurance )

Executive Summary

The Sahel is extremely vulnerable to the  impacts of climate change variability  (characterized by inter-annual and longer-term changes in rainfall patterns, extreme temperatures, recurring droughts, floods including riverine floods ,  dust storms, and heatwaves among others) because of its dependence on the agricultural sector  . The programme will strengthen the resilience and adaptive capacity of smallholder farmers and rural communities in the target countries by providing capacity building and institutional development on integrated climate risks management. This includes reducing obstacles to accessing agricultural insurance for governments and smallholders and strengthening climate weather information services. The $143 million programme was approved in 2021. It has the following components:

  • Component 1. Climate risk preparedness: This component will support the expansion and upgrade of existing early warning systems and hydromet observation networks and capacity-building to enhance data collection, interpretation, understanding and dissemination of climate data. The data will inform forecast-based action programmes, namely those for the development of the micro and macro insurance industry (climate models and agricultural insurance products/services), but also the selection of the most appropriate adaptation practices/technologies and mitigation measures (forestry and land use, access to renewable energy) to respond to climate variability (cropping calendar, the best timing for marketing and processing; choice of the most suitable agricultural practices, climate-resilient varieties and technologies); and decision-making, planning and investments of the private sector, government (local and national) and local rural communities and smallholder farmers.
  • Component 2. Climate risk reduction (adaptation and mitigation): This component aims to strengthen climate change adaptation capacity and boost climate resilient and low emission investments in smallholder agriculture value chains and food systems through a better adoption and implementation of climate adaptation and mitigation best practices in forestry, land use and renewable energy access and solutions and the diversification of livelihoods.
  • Component 3. Climate risk transfer (micro and sovereign risk transfer mechanism): This component will support countries and smallholder farmers in addressing multi-hazards (droughts, heatwaves, floods, diseases, locusts and other pests) in agriculture and livestock value chains. Under component 3, the project will help transfer the residual risks and burdens of climate change faced by smallholder farmers to national and international insurance markets, ensuring that they receive timely compensation and avoid resorting to negative coping strategies when faced with climate disasters. Enhanced hydro-meteorological information and standard operating procedures linking hydromet information to early adaptation response (cropping calendars planning, choice of adaptation and mitigation measures) will support public, private sector (insurers and reinsurers, microfinance institutions, banks) and businesses’ investment decisions on climate risk transfer services and products for enhanced country climate risk profiles. Reliable and robust climate information will ultimately support agricultural policy and planning, investment programming and resilience planning at national and local levels.

Project Details

Sector:  Energy access and power generation, Ecosystem and ecosystem services, forestry, and land use, health, food, water security, livelihoods, Most vulnerable people, communities and regions
Tags:  Africa, Low Income Countries, Mitigation and Adaptation, blended
Source of Capital:  Bilateral, Multilateral & Development Finance Institutions
Project URL:  Download PDF

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