The food system is a key solution to tackling the most critical, urgent challenges of our time. Food systems can and should be at the heart of supporting healthy people, a healthy planet and healthy economies. Sustainable systems can supports strong economic recovery (including job creation and getting out of debt traps), climate action and public health.
But today’s food systems are typically extractive, destructive, and exacerbate huge inequalities, generating over $ 12 trillion a year in hidden environmental, social, and economic costs. Financial incentives are wrong; Negative externalities do not count, preventing the outflow of funds towards sustainable opportunities and imposing a great deal of risk on financial systems. As a result, our food systems are depleting rather than adding value.
An additional $ 350 billion a year is needed to transform food systems. This means changing the way food is financed. Public capital should be used to jeopardize regenerative business models, address challenges such as hunger and poverty, and build pipeline and capacity. Private capital can be used to stimulate more sustainable practices – the proper evaluation of ecosystem services and the mobilization of resources, knowledge and technology for smallholders, indigenous peoples and other producers to support a fairer mode of production and food consumption. Overall, financial system reform is generally needed to redirect incentives and create the potential environment for investment to flow into sustainable food systems.
To address this, the finance lever aims to address incentives that contain an extractive, destructive, exploitative financing model, helping to develop the financial system architecture and financing mechanisms (both public and private) to support the goals of a higher performance, more resilient food system and equal.
The UN Public Finance Forum will bring together public and private stakeholders to address investment barriers and build an ambitious shared vision of a Food Finance Architecture that mobilizes large-scale capital for more sustainable food systems.
This event is organized on behalf of the Finance Lever for the UN Summit of Food Systems. It has benefited from the organization and support of the Secretariat of the United Nations Food Systems Summit, the World Bank, SYSTEMIC & the Food and Land Use Coalition (FOLU) and the International Food Policy Research Institute (IFPRI).
Last Updated: 02 July 2021