5 November 2024
Why livestock development in low- and middle-income countries?
Globally, one third of human induced greenhouse gas (GHG) emissions can be allocated to our food production; with up to 20% being attributed to livestock production1. Low-and middle-income countries (LMICs) are particularly vulnerable to the impacts of climate change, due to their common latitudinal geography and there being insufficient investment for resilience. At the same time livestock keeping in LMICs plays vital roles for food security, nutrition, livelihoods, savings and draught. Climate finance can support the adoption of climate-smart practices that not only reduce greenhouse gas emissions but also enhance productivity and sustainability. Without adequate financial support, there is a risk of leaving millions of small-scale producers and vulnerable communities behind in the global transition to more sustainable food systems.
Why climate finance?
The financial mechanisms of the UN Framework Convention on Climate Change (UNFCCC) provide intergovernmental funds to support climate adaptation and mitigation. Despite increased pledges and the creation of new funds such as the loss and damage fund at COP28, the overall amount remains insufficient to meet global needs. Additionally, funds are unevenly distributed across sectors. The agri-food sector currently receives only 4.3% of total climate finance, with smallholder systems accounting for just 0.8% of that amount2. Livestock production secures only a tiny fraction of this finance, despite its potential to generate significant climate and social benefits, such as reducing emissions, improving food security, and enhancing rural livelihoods.
Key challenges limiting the flow of climate finance to livestock systems
The Livestock Data for Decisions (LD4D) Network brought together a diverse group of livestock experts from academia, multilateral organisations, civil society, governments and funders, to tackle the key barriers limiting investment in the sector. The Climate Finance Solutions Groups co-developed a series of evidence briefs that explore these challenges in depth and propose scalable strategies.
The main barriers identified include data and measurement challenges, inadequate policy frameworks, weak investment cases and limited dialogue between the livestock sector and climate finance institutions. While there is growing recognition of the need to reduce the sector’s environmental impact through initiatives like the Global Methane Pledge, turning these commitments into effective action requires addressing these systemic issues and establishing a clear pathway for investment.
Estimating emissions
To qualify for climate finance, countries and projects will need to quantify the livestock sector’s mitigation opportunities. One of the biggest challenges in unlocking climate finance for livestock is the lack of accurate data on livestock systems. At a national level, reliable and consistent data on livestock numbers and distribution is often difficult to obtain; at the project level, similar challenges can also be found in relation to essential data on feed, breeding, and management practices. These gaps complicate the process of accurately estimating business as usual emissions and changes to emissions if development interventions can improve system productivity. They also make it difficult for countries to apply for climate finance and monitor the effectiveness of interventions.
Insufficient policy support
Another significant barrier is the limited recognition of the livestock sector in national climate policies. Currently, only 36% of Nationally Determined Contributions (NDCs) explicitly mention livestock3, which means that the sector is often overlooked in national climate strategies. Countries must create an enabling policy environment in order to mobilise climate finance. The brief provides guidelines for integrating livestock goals into national climate strategies and frameworks. The case studies from Ethiopia, Kenya, and Uruguay offer practical examples on how aligning national plans and setting clear targets can successfully attract climate finance.
Strengthening the investment case
Livestock is often seen as a high-risk investment, but it can offer a “triple win” of climate adaptation, mitigation, and co-benefits like improved food security for nearly a billion people. Taking a holistic view of these benefits reveals that investing in livestock can bring social and economic returns. To further support the case for investing in livestock, our group of experts compiled a series of case studies that demonstrate how targeted investments can yield both climate and social benefits by improving productivity and resilience and reducing greenhouse gas emissions. Showcasing these success stories can help build confidence among policymakers and investors, showing that the livestock sector, when supported, can contribute meaningfully to climate goals.
About us - Livestock Data for Decisions Network (LD4D) Solutions Groups
Solutions Groups are collaborative groups bringing together a wide range of experts and key decision makers from the LD4D network to co-develop solutions for the livestock sector. Their purpose is to address complex decision-making challenges by leveraging expertise and perspectives across disciplines, sectors and countries. These groups are tasked with identifying and refining challenges and developing tailored innovative solutions. Solutions Groups aim to bridge the gap between research, data and practical application, ensuring that solutions are grounded in evidence and meet the needs of decision-makers.
- Find out more about the LD4D Climate Finance Solutions Group.
- Explore the LD4D evidence briefs: Climate Finance for Livestock Development.
References
1The Breakthrough Institute
2Climate Policy Initiative
and International Fund for Agricultural Development
3Food and Agriculture Organization (FAO) of the United Nations
Ana Miranda
LD4D Development Manager, Royal (Dick) School of Veterinary Studies
Gareth Salmon
Research Fellow, Royal (Dick) School of Veterinary Studies
Frances Ryan
Researcher, Royal (Dick) School of Veterinary Studies