For investors, robust country plans mapping out how they aim to combat climate change are essential to managing climate-related risks and unlocking opportunities, especially in low- and middle-income countries. As of today, however, a core area that can drive the fight against climate change and support global development features too little in these plans: agriculture.
At the heart of the Paris Agreement on climate change, nationally determined contributions, or NDCs, outline country-level commitments to reducing greenhouse gas emissions and the policies required to achieve them. Clear, ambitious policy signals through NDCs give investors the certainty needed to confidently allocate capital toward resilient infrastructure, sustainable food systems, and low-emission technologies — sectors crucial to improving livelihoods, food security, and economic stability in LMICs.
The Paris Agreement remains an important global agreement to manage the growing material risks of climate change, which disproportionately impacts vulnerable populations. Despite federal policy changes in the U.S., thousands of businesses, investors, and local governments recently stated that they remain committed to the goals of the climate agreement.