Potential areas of investment in climate-smart agriculture in South Asia include research, development, capacity building, and private sector opportunities. Specifically, research is needed on climate risks, adaptation and mitigation options for different farming systems. Infrastructure investments could support weather stations, ICT, and research stations. Capacity building programs are also important. Private sector opportunities exist in sustainable value chains, ICT tools, agricultural inputs, and financial services like insurance. The Climate-Smart Village program shows promise for converging different investments at the local level through farmer participation.

1. Potential Areas of Investment in Climate-Smart
Agriculture in South Asia
Arun KC, Pramod Aggarwal and Paresh B Shirsath*
CGIAR Research Program on Climate Change, Agriculture and Food Security (CCAFS)
BISA-CIMMYT, New Delhi

2. Agriculture in South Asia:
• Scope: >260 million hectare agricultural land, contributes about 15% of
total GDP, and employs > 50% population in the region
• Smallholders and subsistence farming
• Tremendous progress in last 4 decades
 Food consumption increased from 1900 kcals to > 2500 kcals
 Average GDP growth >6%
 Little food imports now
• Pressure on Agriculture: increasing population and rising economic
growth - need to meet the present and future demand for food
security
• Climate change: exacerbating the problem, hindering efforts to rise
agriculture production and food security

3.  Drought: 70% land
 Floods: 12% land
 Cyclones: 8% land
 Frost: Northern regions
 Heat: Frequent at many
places
 Coastal salinity ingression
 One of the most
vulnerable regions to
climate change
 Food security and poverty
are the key issues
Climatic Stresses in South Asia
High CV of rainfall in Pakistan; northwest and south India

4. Climate Change and Agriculture
South Asia is a major hotspot
• Climate change likely to reduce agricultural production by 10-
50% by 2050 and beyond, if we do not start adapting now.
• Increased production variability due to more frequent droughts,
floods, and heat events
• Large implications for intra- and inter-national trade.

5. Agricultural adaptation and mitigation
measures in INDCs

6. Potential Areas of Investment in CSA in South Asia
A. Investment in Research
1. Identification, evaluation and development of
portfolios of CSA interventions based on climatic
risks and farming systems in different agro-
ecological zones
2. Assessment of business models and financial
mechanisms for scaling out CSA
3. Modelling micro-economic behavior of agricultural
farms/communities to design incentives for CSA
implementation
4. Identification of business cases on CSA for private
sector
5. Big data generation for enhanced assessment of CC
impacts and design adaptation and mitigation
options

7. B. Investment in development and
Capacity building
1. Infrastructures: Decentralized weather
stations, Information and Communication
Systems (ICT), climate-smart value chain and
advance research stations
2. Tools and models: ICT tools (e.g. crowed
sourcing and cloud computing system),
Decision Support Systems (e.g. computer
based models and Climate-Smart
Prioritization and Investment Tools)
3. Capacity building: Investment in capacity
building activities and infrastructures

8. C. Investment Opportunities for Private Sector
1. Sustainable Value Chain: Value addition, energy use
efficiency, reduce post-harvest losses
2. ICT Tools and Systems: for dissemination of climate
information, agro-advisories and help line
3. Agri-Inputs: seeds, nutrients, agro-chemicals, farm
machinery, water and energy efficient technologies
4. Financial Sectors: saving and credits, agriculture insurance,

9. • Research on CSA is evolving: Major fund on agricultural R&D is
absorbed by customary agricultural R&D projects
• Growing recognition of CSA by new Agricultural Development
Policies and Plans: e.g. Agricultural Development Strategy (ADS) of
Nepal and National Mission for Sustainable Agriculture (NMSA) of India
• Mainstreaming CSA into Agriculture Development Policies and
Plans: through Official Development Assistance (ODA) and Bilateral and
Multilateral funds (such as USAID, DFID, IFAD, WB and ADB)
• Initial research on CSA: from Public funding (Agricultural Development
Budget), Climate Change Fund (supported by UNFCCC), Climate Investment
Fund (Pilot Program for Climate Resilience), INGO/NGOs and Private Sectors
funding
Current R&D on CSA in South Asia

10. Climate-Smart Village Programme
Potential of convergence of different investments at local level
For more details visit www.ccafs.org
1. CSV is an integrated farmer
participatory approach
2. CSV can consolidate and converge a
range of investment activities at local
level
3. CSV to integrate CSA- technologies,
institutions and village development
plans
4. CSV to facilitate collaboration among
diverse partners
5. CSV as operational model for scaling-
up: local adaptation and mitigation
plans, development and industry
partners

11. Key investment opportunities in a CSV

12. End of
2016
0
500
1000
1500
2010 2012 2014 2016
NumberofCSVs
Climate-Smart Villages in South Asia

13. Typical Partners of CSVs
• Farmer groups
• Buyers
• Input suppliers
• Rural ICT company
• Insurance company
• Meteorological agency
• Local governments, CBOs, NGOs
• Researchers (NARS, Universities,
CGIAR)

14. Conclusions
1. Large potential of investment in CSA exists in South Asia: Still
big challenge to divert funding to CSA activities from
different national and international sources
2. Public and private finance needs to be integrated to deliver
successful CSA activities at different levels (i.e. farm,
landscape and market)
3. Participatory program such as CSV would have huge
potential for consolidation and convergence of range of
financial option at a local level

15. Thank you !

16. Initial achievements of CSV program
1. Evidences of CSVs: Impact on yield, income, inputs use and GHG
emissions. Source: Jat et al. 2014, Aryal et al. 2015, Sapkota et al.
2014, Aryal et al. 2014 Khatri-Chhetri et al, 2015, Sapkota et al
2015a, Sapkota et al. 2015b
2. Development of partnership: Strengthening collaboration among
researchers, local government and farmers organizations for
participatory evaluation of diverse CSA technologies in farmers’
fields.
3. Investment and scaling out/up: International organizations,
national and state governments have shown keen interest to invest
and scale out CSV approach in various locations, Example: India
(Maharashtra, Haryana), Nepal (IFC, CDKN) and Bhutan.
4. Development of portfolio of interventions in the CSVs: integration
of seed, water, nutrient, energy, insurance and ICT