Rice is not a well-known or well-understood impact finance opportunity for global impact investors -- but is one of the world's most important resources in the race for climate adaptation.
Rice is the main food staple for 3.5 billion people -half the world population. It is grown by 150 million smallholders and supports the livelihoods of 1 billion people. Rice accounts for 40% of the total water used for irrigation globally and rice yields are expected to fall due to the combined effects of climate change and water insecurity. Furthermore, rice emits 10% of global methane emissions.
A range of sustainable production practices exist, but given the complexity of the global value chains and the fragmentation of smallholders living in poverty, moving capital towards sustainable production will require a series of innovative financing mechanisms and partnerships
Earth Security Group is pursuing the development, design and catalysing of innovative finance mechanisms that enable banks, agribusinesses and farmers to create new ways of harnessing investment to scale up sustainable rice.
As part of this project, which is funded by the Swiss Agency for Development and Cooperation, ESG has partnered with the UN-sponsored Sustainable Rice Platform (SRP); the United Nations Capital Development Fund (UNCDF), the World Business Council for Sustainable Development (WBCSD), and others, to streamline its strategic analysis, concept development and partnership creation process for a range of new instruments.
The report will put forward a series of blueprints for the development of:
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Partnership Agreement signing between Alejandro Litovsky, CEO of Earth Security Group, and Wyn Ellis, Executive Director of the UN-sponsored Sustainable Rice Platform (SRP), October 3rd 2019, Bangkok, Thailand[/caption]