CFA Institute, the global association of investment professionals, has urged policymakers and stakeholders to scale up financing in sustainable agriculture projects, in order to address climate change vulnerability. According to a report by CFA Institute in partnership with Climate Bonds Initiative, agriculture, which is the primary source of livelihood for about 58 per cent of India’s population and contributes to global food security as one of the major producers of agro-commodities, is particularly vulnerable to climate change.

CFA Institute has called for a concerted effort from Indian banks, venture capital (VC) investors, multilateral development institutions, and Indian policymakers, towards catalysing private capital for sustainable agriculture.

“In India, we have a National Mission for Sustainable Agriculture (NMSA), which aims to evolve and implement strategies to make Indian agriculture more resilient to the changing climate.

“However, to transition to more sustainable practices, farmers will need better policy, better tech, and more access to capital,” Vidhu Shekhar, CFA, CIPM, country head, India, CFA Institute said.

The report, titled ‘Financing Sustainable Agriculture in India: Opportunities, Challenges, and the Way Forward’, examines various facets of sustainable agriculture, and provides several recommendations for policymakers and other stakeholders to catalyse financing at a larger scale.

It also explains various models for financing sustainable agriculture, including blended finance, green bonds and VC funding in disruptive agritech innovations.

“Agriculture is particularly vulnerable to climate change, in terms of yields and nutritional content of grains. Therefore, financing the transition to sustainable, or climate-resilient, agriculture is vital,” said Sivananth Ramachandran, CFA, CIPM, director, capital markets policy, India, CFA Institute.