Agricultural innovations are essential for tackling climate change in low- and middle-income countries. On February 19th, the University of Chicago Market Shaping Accelerator (MSA), the Innovation Commission for Climate Change, Food Security, and Agriculture, and the International Finance Corporation (IFC) hosted the Catalyzing Innovation event, where experts from the private sector, development finance institutions, universities, and foundations came together to explore how targeted incentives can accelerate agricultural innovations that address climate change.

Agriculture is responsible for 22% of global emissions, and crop yields face a projected 28% decline by 2100, even with baseline adaptation efforts. Despite agriculture’s significant role in climate change, it currently receives only a fraction of global climate finance. This event highlighted key opportunities to unlock agricultural innovation and drive impact:

1. Livestock methane emissions: Cattle emissions contribute 6% of global greenhouse gases. Solutions like feed additives and methane vaccines are promising, but adapting them to diverse production systems requires more R&D. Read more here and check out Spark Climate Solutions.
2. Climate-resilient crops: Heat- and drought-tolerant crops are essential for food security. The University of Chicago Market Shaping Accelerator (MSA) estimates that improving heat tolerance by just one degree for 10% of East African sorghum could generate $1–2.5 billion in economic benefits for roughly one-tenth of the cost. Read more here.
3. Microbial fertilizers: For some crops, microbial fertilizers can replace synthetic alternatives – responsible for 1% of global emissions – while boosting yields. Proven success in the US and Brazil, along with promising early results in other countries, highlight their potential as a “win-win” for climate and agriculture. Read more here.

Bridging the Financing Gap

Despite these high-impact opportunities, agrifood systems received only ~4% of global climate finance in 2019–2020, while sectors like transportation—despite emitting fewer greenhouse gases—received 26%. Bridging this funding gap is critical to scaling agricultural innovation.

Beyond financing, better policy incentives are needed. Market failures deter private investment in agricultural R&D, but pull mechanisms like Advance Market Commitments (AMCs)—which have successfully accelerated vaccine development—could do the same for innovations in agriculture. Well-structured incentives can mobilize investment where markets alone fall short.

A Call to Action

Agricultural innovation sits at a critical nexus: there is the potential to significantly reduce emissions, strengthen resilience, and improve livelihoods for billions. Yet, without targeted financing and supportive policies, promising solutions will remain underdeveloped.

The Catalyzing Innovation event underscored both the urgency and the opportunity to act. To learn more or collaborate on solutions, contact [email protected].