Innovative Climate Risk Financing for the Agricultural Sector in the ASEAN Region (AgriCRF)

OBJECTIVES

  • We support farmers to secure their income against the impact of climate change.
  • We help to ensure food security for everyone.
  • We empower women to be equally involved in the family farm’s management.
  • We facilitate access to technologies that enable cheaper, accessible credit and crop insurance for farmers.
  • We help to secure millions of jobs and a significant part of national income in the region.

DESCRIPTION

Climate change means that large parts of a harvest can be destroyed by drought or flooding. The financial damage can easily ruin a farmer. And when harvests are destroyed, it usually means higher food prices for all of us. Therefore, we help farmers to save costs and improve income through sustainable agriculture practices.

Also, we provide better access for banks and insurance companies to weather and satellite data, which they can use to better calculate risks and offer cheaper credit and crop insurance. This benefits everyone. Banks and insurance companies gain more customers, and farmers are better protected. If farmers can protect themselves from the effects of climate change, this relieves the burden on governments and ultimately on the taxpayers in the region. This is how we help to protect against climate risks in Southeast Asia – for the benefit of farmers, of consumers, and of taxpayers.

APPROACH/FIELD OF INTERVENTION

  • Agriculture in Southeast Asia not only feeds the people in the region and beyond. It employs millions and is a central part of each country’s economy. The countries in the region are already among the most affected by climate change in the world. That is why we are working with farmers, banks, and insurance companies in the region to make the risks of climate change manageable.
  • In our trainings, farmers learn that farming, like any business, has clear rules. Parts of the annual income should be used for investment and some parts for saving reserves. If the farmers learn to manage their business better, they are better prepared for climate risks as well.
  • We help the farmers with crop insurance, specialized loans and knowledge to save cost and improve income. Green loans for farmers help to invest in measures such as water saving irrigation systems. This reduces their water consumption, saves costs and protects against droughts.

PUBLICATIONS

COUNTRY

Viet Nam , Thailand , Indonesia , Asean

DURATION

Jan 2023 - Dec 2025

Commission Agency

BMZ

SDG

Project Partners

Regional level: Food, Agriculture and Forestry Division of ASEAN Secretariat, the ASEAN Sectoral Working Group on Crops (ASWGC)

National level: Relevant departments under the agriculture ministry and finance ministry, financial institutions, private sector, research institutions, farmers, and other relevant stakeholders

WEBSITE

Innovative Climate Risk Financing for the Agricultural Sector in the ASEAN Region (AgriCRF) | Sustainable Agrifood System in ASEAN

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