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In Latin America, farmers use microfinance to fight climate change

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María Fernanda Masís and her family are the owners of the hot sauces brand Xoloitzcuintle, named after their farm. Photo: UNEP

Sonia Gómez has spent her entire life around agriculture. She grew up on her parents’ plantation in the fertile mountains of Costa Rica before opening her own organic farm several years ago. But that experience did little to prepare her for what has become a dire threat to her business: climate change.

Increasingly severe cycles of drought and flooding – which are being driven by global warming – have wreaked havoc on her crops of chilis, tomatoes and carrots.

“We don’t know when it will rain or when it will be sunny,” says Gómez, whose farm is in the foothills of Costa Rica’s tallest volcano, Irazú. “It is difficult for us, as farmers, to work like this.”

Globally, more than 1.5 billion people live or work on small farms, like Gomez’s. They often cannot afford the advanced technology that could help them contend with the fallout from climate change.

The United Nations Environment Programme (UNEP) and Gomez are hoping to change that. In late November, Gomez’s farm became an official test bed for low-cost, environmentally friendly technology designed to help farmers adapt to a changing climate. It now features everything from a seed bank to a high-tech irrigation system.

The effort is part of the Microfinance for Ecosystem-based Adaptation (MEbA) project, spearheaded by UNEP and implemented in Costa Rica along with Fundecooperación, a non-profit group and microfinance bank. Along with supporting the creation of 11 test farms, the initiative has worked with micro-lenders across Latin America to provide 17,000 loans to small-hold farmers looking to invest in eco-friendly solutions.

Seeds of change

“Helping small-scale farmers to adapt to climate change is crucial to fighting poverty, ensuring food security and preserving the biodiversity that provides us with vital resources,” says Leo Heileman, UNEP Regional Director in Latin America and the Caribbean. “This move towards more sustainable and resilient agriculture requires the full support of financial institutions.”

While it produces relatively little carbon dioxide itself, Latin America and the Caribbean is vulnerable to extreme weather induced by a changing climate. This is especially true in the so-called Dry Corridor of Central America, which includes El Salvador, Honduras and Nicaragua. More than 2 million people there depend on subsistence farming and by the end of the century, temperatures could rise up to 7 °C, according to some projections. That, say experts, would drastically alter weather patterns.

Since 2012, MEbA has provided technical assistance to financial institutions, helping them disburse more than US$ 29 million in loans to small-scale farmers in Colombia, Costa Rica, Ecuador, El Salvador, Peru and the Dominican Republic.

The project has helped farmers finance more than 30 strategies for adapting to climate change, from beekeeping to agroforestry. In late November, Fundecooperación also launched two new loan types that promote climate-smart agriculture and livestock farming.

Capital improvements

That financing has allowed farmers to re-invest in their land. Gomez’s farm, which she calls La Sanita, Spanish for “healthy”, features several innovations designed to safeguard against extreme weather. Those include a rainwater collection system built atop a greenhouse Gomez previously erected through a microloan from Fundecooperación. It funnels water directly to the roots of her plants through drip irrigation, reducing water loss through evaporation.

The farm, located in the province of Cartago, also has an organic fertilizer laboratory to improve soil productivity and a bank to preserve organic-grade seeds. As well, Gomez planted fruit trees and perennial herbs in the steepest areas of her farm to reduce soil erosion.

After months of restrictions due to the COVID-19 pandemic, the farm was formally inaugurated on 25 November during an online event. It wasn’t the only ‘demonstration plot’ – another one, the Xoloitzcuintle farm, which grows vegetables for the country’s famed hot sauces, joined La Sanita in proving the MEbA project’s success in Cartago province.

The Xoloitzcuintle farm, led by María Fernanda Masís, is recovering the quality of its soil to cope with extreme weather events. Years of mechanical tillage and agrochemicals resulted in compacted soil, with little organic matter, that erodes easily when heavy rains arrive.

With support from the project, the farm is finding solutions for water management. Some are straightforward, like digging trenches to infiltrate water output, others more complex, like drip irrigation systems. Masís has also turned to organic fertilizers and put in place a silvo-agricultural system that taps into the farm’s timber and fruit trees.

“Teaching by example is our best option,” said Marianella Feoli, Executive Director of Fundecooperación. “Demonstration farms [like La Sanita and Xoloitzcuintle] facilitate exchanges between producers and help them learn from each other’s experiences and invest in similar solutions through specialized credit products.”

UN Environment

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Environment

CEOs to G7 and World Leaders: Support “Bold” Net-Zero Commitments

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Over 70 CEOs said they stand ready to work with public sector leaders around the world to reduce emissions. Members of the Alliance of CEO Climate Leaders signed an Open Letter championing public-private cooperation ahead of the G7 summit in order to supercharge net-zero commitments, polices and actions.

The signatories are looking for governments to accelerate the transition to net-zero before COP26 in order to accelerate even more action from the private sector. The letter emphasizes public-private collaboration as vital and welcomes transformative policy change.

“It is an important and significant move for this many CEOs to put their names forward for deeper collective collaboration,” said Dominic Waughray, Managing Director, World Economic Forum. “It sends a clear signal to policy-makers that many global business leaders are ready to make the transition to a net-zero future. As we move towards COP26, public-private collaboration will be key to unlocking investment, setting more ambitious targets to reduce emissions, and turning this ambition into action.”

The Alliance of CEO Climate Leaders is the only CEO-led community open to all companies worldwide that want to make clear commitments and work to transition to net-zero. Members believe the private sector has a responsibility to actively engage in global efforts to reduce greenhouse gas emissions and to help lead the global transition to a low-carbon, climate-resilient economy. The World Economic Forum hosts the alliance.

The full text of the Open Letter and the list of signatories can be found here on the here on the Forum’s Agenda news site.

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Recreate, Re-imagine, Restore!

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Leaders in global politics, science, communities, religion and culture joined hands today to officially kick off the UN Decade on Ecosystem Restoration – a rallying call for the protection and revival of millions of hectares of ecosystems all around the world for the benefit of people and nature.

Led by the UN Environment Programme (UNEP) and the Food and Agriculture Organization of the UN (FAO), the Decade on Restoration – which runs from 2021 to 2030 – was proclaimed by the United Nations General Assembly in a 2019 resolution.

The launch took the form of a high-level virtual gala with the participation, alongside the heads of UNEP and FAO and UN Secretary-General António Guterres, of Imran Khan, the Prime Minister of Pakistan, which hosts World Environment Day on 5 June this year; Pope Francis; Félix-Antoine Tshisekedi Tshilombo, President of the Democratic Republic of Congo and Chair of the African Union; German Chancellor Angela Merkel; and Prime Minister of Barbados, Mia Mottley. Among the global figures who spoke were UN Messenger of Peace Jane Goodall and other goodwill ambassadors, advocates, youth representatives, scientists and CEOs.

“By restoring ecosystems, we can drive a transformation that will contribute to the achievement of all the Sustainable Development Goals. The task is monumental. We need to replant and protect our forests. We need to clean up our rivers and seas. And we need to green our cities,” the UN Secretary-General said in his message. “Accomplishing these things will not only safeguard the planet’s resources. It will create millions of new jobs by 2030, generate returns of over $7 trillion dollars every year and help eliminate poverty and hunger.”

The FAO Director-General QU Dongyu, noting that the increasing pressure on the world’s natural resources is affecting the well-being of 40 percent of the global population, called for a change of mindset.

“Business as usual is not an option!” he underscored. “We need to prevent, halt and reverse the degradation of ecosystems worldwide, including our farmlands and forests; our rivers and oceans. More efficient, inclusive, resilient and sustainable agri-food systems can help restore ecosystems and safeguard sustainable food production, leaving no one behind,” he added.

“We must use this moment in history to launch a massive global movement to save our terrestrial and marine ecosystems even as we continue to decarbonize. Everyone has a ‘to-do’ here,” said UNEP Executive Director Inger Andersen. “Governments must ensure COVID-19 stimulus packages contribute to a sustainable and equitable recovery from the pandemic. Businesses and the financial sector must reform operations and financial flows so that they restore the natural world. And as individuals and consumers, it is time rethink choices, demand deforestation-free products and vote for sustainability in the polling booths.”

“Restoring the nature we have damaged means, in the first place, restoring ourselves,” said Pope Francis in a video message relayed by Cardinal Pietro Parolin, Secretary of State. “We welcome this United Nations Decade on Ecosystem Restoration, let us be compassionate, creative and courageous. May we take our proper place as a ‘Restoration Generation.’”

The Decade aims to inspire and support governments, multilateral organizations, civil society, private sector companies, youth, women’s groups, indigenous peoples, farmers, local communities and individuals globally, to collaborate, develop and catalyse restoration initiatives across the world. The effort will involve a raft of activities. They range from redirecting fiscal incentives and financial flows to promote restoration to undertaking research on restoration in terrestrial and marine environments, building the technical capacity of restoration practitioners globally and monitoring global progress on restoration.

The Decade aims to mobilize hundreds of millions of people to restore nature and foster a global restoration culture in which restoration initiatives are scaled up across the planet.

“The world has no choice but to go on a nature positive pathway which will not only boost the economy but also protect the environment,“ said Imran Khan, Prime Minister of Pakistan, whose country in 2019 embarked on an ambitious plan to plant 10 billion trees.

Welcoming the launch of the UN Decade, Felix-Antoine Tshisekedi Tshilombo, President of the Democratic Republic of Congo and Chair of the African Union, noted that the African continent had made multiple commitments through several regional Declarations, pledges, Calls to Action and pilot activities, but there was a need to mobilize the necessary resources and expertise to lead large-scale implementation.

“The restoration of terrestrial, marine and freshwater ecosystems should be undertaken in such a way as to avoid creating land conflicts or conflicts of use,” he added. “It must therefore be part of visionary spatial planning processes that take into account inter-sectoral trade-offs, respecting land and resource tenure rights of local communities and other vulnerable social groups.”

In her message, German Chancellor Angela Merkel said: “We have to do more to protect and restore natural habitats – and we have to do it now, not some time in the future.”

“We have to ensure now that forests, which we need not least to regulate our climate, are protected and replenished,” she added.

The Chancellor also announced that Germany would be the first country to provide funding – 14 million Euro – to the Multi-Partner Trust Fund for the Decade on Ecosystem Restoration.

The launch of the Decade on Ecosystem Restoration today leads into World Environment Day on 5 June, the United Nations’ flagship day for promoting worldwide awareness and action for the environment. Held under the theme of ecosystem restoration, this year’s World Environment Day is hosted by Pakistan, which will mark the day and the start of the UN Decade with an event taking place in Islamabad and officiated by Prime Minister Imran Khan with the participation from a host of dignitaries from around the world including UNEP Executive Director Inger Andersen and senior officials from FAO, UN-Habitat and UNDP, as well as senior officials from countries including Germany and Saudi Arabia.

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World Environment Day boosts growing global movement to restore damaged ecosystems

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Individuals, communities, civil society, businesses and governments around the world today marked World Environment Day – with official celebrations held in Islamabad – by making commitments and calling for action to restore millions of hectares of ecosystems all around the world for the benefit of people and nature.

Hosted by Pakistan in partnership with the UN Environment Programme (UNEP), this year’s World Environment Day served as the formal launch of the UN Decade on Ecosystem Restoration (2021-2030). Led by Pakistan’s Prime Minister Imran Khan, speakers at the event – including British Prime Minister Boris Johnson, China’s President Xi Jinping, UN Secretary-General António Guterres, heads of UN agencies and government ministers – stressed the importance of restoration in global efforts to mitigate climate change and promote sustainable development.

“The degradation of the natural world is already undermining the well-being of 3.2 billion people – or 40 per cent of humanity. Luckily, the Earth is resilient. But she needs our help. We still have time to reverse the damage we have done,” the UN Secretary-General said. “That is why, on this World Environment Day, we are launching the United Nations Decade on Ecosystem Restoration. This global movement will bring together governments, businesses, civil society and private citizens in an unprecedented effort to heal the Earth. By restoring ecosystems, we can drive a transformation that will contribute to the achievement of all the Sustainable Development Goals.”

The UN Decade aims to inspire and support governments, UN agencies, civil society, private sector companies, youth, women’s groups, indigenous peoples, farmers, local communities and individuals globally, to collaborate, develop and catalyse restoration initiatives across the world. The Decade aims to mobilize hundreds of millions of people to restore nature and foster a global restoration culture in which restoration initiatives are scaled up across the planet.

“This is an opportunity for the world – these next 10 years, the world has to correct its course. It’s a clash between our greed on the one side and humanity on the other; there needs to be a balance between the two,” said Prime Minister Khan. “When this balance is disturbed and consumerism, consumption and greed reach such a level, this always leads to disastrous consequences for humanity.”

“If we don’t care for our environment, and our ecosystems, it will have severe consequences for the humanity and we will have to pay a big price for this,” he added.

Pakistan has embarked on an ambitious effort to expand and restore its forests as part of its 10 billion-tree drive, recently planting its billionth tree; the country has also pledged to restore about 1 million hectares of degraded lands across the country by 2023 as part of the Bonn Challenge. In addition, Pakistan recently launched its first green bond, seeking $500 million for environmentally friendly projects to enhance the clean energy share in the country’s power sector.

“Restoring ecosystems is a remarkable solution. It slows climate change, brings back lost biodiversity, creates productive land for agriculture, provides jobs and restores nature’s buffers against zoonotic diseases and pandemics,” said Inger Andersen, Executive Director of UNEP.

“If we work hard in four areas – to get finance flows in tune with nature; to protect those that manage land; to make our cities green; and to restore the blue planet – we will heal nature and make everybody’s lives better,” she added.

Other major commitments announced around World Environment Day and the UN Decade include over £8 million in new funding from the UK to protect rare wildlife and vulnerable habitats across the globe; a 8.5 million Euro commitment by Dove and Conservation International to protect and restore 20,000 hectares of forest – the equivalent of 3 million trees – in North Sumatra, Indonesia; a pledge by E.ON, Europe’s largest operator of energy distribution networks, to create biotopes under 13,000 kilometers of high-voltage lines in forest areas; 3 million Euro from Finland to support the launch of, and regional action in developing countries under the UN Decade, and an announcement by Germany that it would be the first country to provide funding – 14 million Euro – to the Multi-Partner Trust Fund for the Decade on Ecosystem Restoration. 

Away from Islamabad, World Environment Day events and initiatives took place across the world, including a virtual concert featuring Patti Smith, the Dave Matthews Band, Michael Stipe and other international artists; the world premiere of Is It Too Much to Ask, a song by DJ Don Diablo for #GenerationRestoration; a virtual Ecosystem Restoration Classroom, a new initiative to take young South African learners – and others – on a journey across three unique landscapes threatened by human development; fireside chats with youth organisations and more.

In collaboration with TikTok, UNEP also challenged users on the content platform to share their ecosystem restoration action using the #GenerationRestoration hashtag. Videos with the hashtag have been viewed over 40 million times, with contributions from influencers including UNEP Goodwill Ambassadors Alex Rendell and Antoinette Taus.

UNEP Goodwill Ambassadors Gisele Bündchen, Formula E driver Lucas De Grassi and Dia Mirza also lent their support to the Day on social media, while young artists such as US poet Jordan Sanchez and Indian sand artist Sudarsan Pattnaik also created imaginative pieces to highlight the urgent need for restoration.

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