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Table of contents Table of contents MODULE 1: Why Climate-smart agriculture, forestry and fisheries Overview and Key messages 1 1.1 Food security and climate change: three intertwined challenges 5 1.2 Towards more efficient and resilient systems 8 1.3 Increase systemic efficiency and resilience: policies, institutions finances 24 1.4 What’s new with CSA? 27 1.5 Conclusions and focus of the sourcebook 30 MODULE 2: Managing landscapes for Climate-smart agricultural systems Overview and Key messages 41 2.1 Why is a landscape approach needed for achieving Climat-smart agriculture? 45 2.2 How can a landscape approach be implemented? 51 2.3 Examples of landscape approaches 57 2.4 Conclusions 76 MODULE 3: Water management Overview and Key messages 81 3.1 Introduction 84 3.2 Water management in agriculture: status and trends 84 3.3 Potential impacts of climate change on water in agriculture 85 3.4 Vulnerability to climate change and resilience: a variety of situations 88 3.5 Assessing risk, preparing responses 89 3.6 Options for adaptation to climate change 90 3.7 Prioritizing options with an eye on vulnerable categories of people 95 3.8 Conditions for successful adaptation 96 3.9 Water management for climate change mitigation 96 3.10 Conclusions 97 MODULE 4: Soils and their management for Climate-smart agriculture Overview and Key messages 105 4.1 Principles of soil health, key functions and soil: plant-water interrelations 109 4.2 Challenges of climate change to soils 111 4.3 Soil principles for climate change adaptation and mitigation and enhancing resilience in different contexts 113 4.4 Successful examples of soil management practices for climate-smart agriculture with a focus on resilience 120 4.5 Conclusions 124 MODULE 5: Sound Management of Energy for Climate-smart agriculture Overview and Key messages 139 5.1 Introduction – Energy and the agrifood system 143 5.2 Energy-smart food in the CSA context 145 5.3 Moving forward – possible energy solutions for CSA 156 5.4 Conclusions 165 iii CLIMATE-SMART AGRICULTURE SOURCEBOOK MODULE 6: Conservation and sustainable use of genetic resources for food and agriculture Overview and Key messages 171 6.1 Genetic resources for food and agriculture 175 6.2 Genetic resources for food and agriculture: a prerequisite for climate-smart agriculture 176 6.3 Concluding remarks 185 MODULE 7: Climate-smart crop production system Overview and Key messages 191 7.1 Introduction 195 7.2 Climate change impacts 195 7.3 Sustainable crop production intensification 196 7.4 Underlying principles: management of natural biological processes 198 7.5 Climate-smart approaches and practices 202 7.6 Conclusions 204 MODULE 8: Climate-smart Livestock Overview and Key messages 211 8.1 Introduction 215 8.2 Adaptation and mitigation needs 216 8.3 Climate-smart livestock 218 8.4 Conclusions 227 MODULE 9: Climate-smart forestry Overview and Key messages 239 MODULE 10: Climate-smart fisheries and aquaculture Overview and Key messages 241 10.1 Introduction 245 10.2 Climate-smart approaches 248 10.3 Practical themes for developing climate-smart fisheries and aquaculture 252 10.4 Strategic climate-smart approaches for the sector 267 10.5 Progress of fisheries and aquaculture towards CSA 270 10.6 Transitioning to CSA 270 10.7 Conclusions 271 MODULE 11: Developing sustainable and inclusive food value chains for Climate-smart agriculture Overview and Key messages 285 11.1 Introduction to sustainable and inclusive food value chains 289 11.2. Sustainable and inclusive food value chains in practice: the case of food losses and waste 294 11.3 Step-by-step approach for chain actors to improve their performance along the sustainable and inclusive food value chain 311 11.4 Conclusions 312 MODULE 12: Local institutions Overview and Key messages 321 12.1 Introduction 325 12.2 Key institutions for CSA initiatives 328 12.3 Building synergies 335 12.4 Quick institutional context assessment 342 12.5 Conclusions 345 iv Table of contents MODULE 13: Mainstreaming Climate-smart agriculture into National Policies and Programmes Overview and Key messages 353 13.1 Climate-smart agriculture within larger economic and policy frameworks 357 13.2 Improve market accessibility: policy and financial instruments 361 13.3 Improving access to knowledge and monitoring: the role of implementing actors 364 13.4 Conclusions 369 MODULE 14: Financing Climate-smart agriculture Overview and Key messages 375 14.1 Introduction 379 14.2 How does climate change affect investment needs for agriculture? 379 14.3 Global climate finance: catalysing the transition towards CSA 393 14.4 Preparing for the way forward in international CSA financing 406 MODULE 15: Disaster Risk Reduction: Strengthening Livelihood Resilience Overview and Key messages 413 15.1 Disaster risk reduction and climate change adaptation 417 15.2 Planning for resilience against multiple risks 417 15.3 Building on community-based approaches to DRR and adaptation 425 15.4 Scaling up proven technologies and practices for resilient livelihoods 427 15.5 The enabling framework of DRR to support CSA 434 15.6 Concluding remarks and recommendations 438 MODULE 16: Making Climate-smart agriculture a work for the most vulnerable: the role of safety nets Overview and Key messages 449 16.1 Introduction 453 16.2 Social protection and safety nets – a conceptual overview 453 16.3 Key functions of safety nets in relation to CSA 454 16.4 Challenges and lessons learned 459 16.5 Conclusions 463 MODULE 17: Capacity development for climate-smart agriculture Overview and Key messages 469 17.1 Introduction 473 17.2 Strategies for improving policy coherence and effectiveness 480 17.3 Strategies for knowledge sharing and effective learning 481 17.4 Conclusions 487 MODULE 18: Assessment, monitoring and evaluation Overview and Key messages 493 18.1 Introduction 497 18.2 Defining assessment, monitoring and evaluation for CSA: scope, purposes, frameworks and concepts 497 18.3 How to conduct assessments for CSA policy and project design 508 18.4 How to implement monitoring and evaluation for CSA programmes and projects 515 18.5 Challenges and guiding principles 523 18.6 Examples of assessment, monitoring and evaluation 529 18.7 Conclusions 534 GLOSSARY 545 v CLIMATE-SMART AGRICULTURE SOURCEBOOK Acknowledgements The drafting of this Sourcebook on Climate-Smart Agriculture, Forestry and Fisheries has been a collaborative effort involving professionals from within several departments of FAO and a variety of partner organizations. Many individuals played a leading role as main authors and coordinators in the preparation of the modules, while others made written contributions to the Modules’ boxes and case studies. The conceptualization and production of this sourcebook was coordinated by Lucia Palombi and Reuben Sessa, under the overall supervision of the Director of the Climate, Energy and Tenure Division of FAO Xiangjun Yao and the Senior Natural Resources Officer Tiina Vähänen. Editorial support was provided by Denise Martínez Breto, Kaisa Karttunen, Gordon Ramsay and Alessandra Bresnan while the graphic design was elaborated by Maria Guardia and Fabrizio Puzzilli. Module 1 on why climate-smart agriculture, forestry and fisheries was written by Alexandre Meybeck (FAO) and Vincent Gitz (FAO) with contributions from Richie Ahuja (EDF–India), Kevern Cochrane (FAO), Anette Engelund Friis (World Farmers Organization), Elwyn Grainger-Jones (IFAD), Hsin Huang (OECD), Chang-Gil Kim (KREI- South Korea), Atta-Krah Kwesi (Bioversity International), James Lomax (UNEP), Dr B. Mantlana (South Africa), Hayden Montgomery (New Zealand), Lucia Perugini (University of Perugia) and Dipti Thapa (World Bank). The module was reviewed by Shivaji Pandey and Wilfrid Legg. Module 2 on managing landscapes for climate-smart agricultural ecosystems was written by Marja-Liisa Tapio- Bistrom (FAO), Anne Bogdanski (FAO) and Lisen Runsten (FAO) with contributions from Anni Arial (FAO); Nadine Azzu (FAO); Sally Bunning (FAO); Christina Seeberg-Elverfeldt (FAO); David Coates (CBD secretariat); Zhijun Chen (FAO); Cassandra De Young (FAO); Paolo Groppo (FAO); Marc Dumas Johansen (FAO); Damiano Luchetti (FAO); Sheila Mwanundu (IFAD); Matthias Reiche (FAO); Janie Rioux (FAO); Reuben Sessa (FAO); Kim-Anh Tem- pelman (FAO); Stephen Twomlow (IFAD); and Tiina Vahanen (FAO). Box 2.4 was written by Maria Nuutinen (FAO). Case Study 2.1 was written by Richard Hatfield (Natural Capital East Africa). Case Study 2.2 was written by David Boerma (FAO). Case study 2.3 was written by Doris Soto (FAO). Case Study 2.4 was written by Lisen Runsten (FAO) and Manuela Vollbrecht (FAO). Case Study 2.5 was written by Pieter Van Lierop (FAO) and Petteri Vuorinen (FAO). Case Study 2.6 was written by Wu Ning (ICIMOD) and Hans Joosten (University of Greifswald). Case Study 2.7 was written by Sally Bunning (FAO) and Monica Petri (FAO). Case Study 2.8 was written by Tomas Lindemann (FAO), Paola Palestini (FAO) and Daniela Morra (FAO). Module 3 on water management was written Jean-Marc Faurès (FAO) with contributions from Devin Bartley (FAO), Mohamed Bazza (FAO), Jacob Burke (FAO), Jippe Hoogeveen (FAO), Doris Soto (FAO) and Pasquale Steduto (FAO). Module 4 on soils and their management for CSA was written by Sally Bunning (FAO), Sandra Corsi (FAO) and Ronald Vargas (FAO). Module 5 on energy was written by Olivier Dubois (FAO), Alessandro Flammini (FAO), Anne Bogdanski (FAO) and Jonathan Reeves (FAO). Module 6 on conservation and sustainable use for genetic resources for food and agriculture was written by Damiano Luchetti, Ehsan Dulloo, Anna Asfaw and Linda Collette (FAO) with contributions by Devin Bartley, Cas- sandra De Young, Mary Jane Dela Cruz, Matthias Halwart, Kathrin Hett, Irene Hoffmann, Mario Marino, Albert Nikiema, Dafydd Pilling, Beate Scherf, Doris Soto, Kim-Anh Tempelman and Álvaro Toledo (FAO) in coordination with the Secretariat of the Commission on Genetic Resources for Food and Agriculture and FAO’s inter-depart- mental working group on biodiversity. Module 7 on crop production systems was written by Nadine Azzu (FAO) and Suzanne Redfern (FAO) with contri- butions from Theodor Friedrich (FAO), Gualbert Gbehounou (FAO), Amir Kassam (FAO), Chikelu Mba (FAO) and Cornelis VanDuijvendijk (FAO). vi Acknowledgements Module 8 livestock was written by Pierre Gerber (FAO) with contributions from Benjamin Henderson (FAO) and Carolyn Opio (FAO). Case study 8.2 was written by Muhammad Ibrahim (IICA-Belize), Cristóbal Villanueva (CATIE), Claudia Sepúlveda (CATIE), Diego Tobar (CATIE-Costa Rica), Guillermo Chuncho (CATIE). The key messages for Module 9 on climate-smart forestry were written by Susan Bratz (FAO). Module 10 on climate-smart fisheries and aquaculture was written by Cassandra De Young (FAO), Doris Soto (FAO) and James Muir (FAO consultant) with contributions by Randall Brummett (World Bank) and Matthias Halwart (FAO) and in coordination with the Global Partnership for Climate, Fisheries and Aquaculture (PaCFA). Box 10.6 on climate-smart tuna fishing was written by Johann Bell (SPC). Box 10.7 on culture based fish- eries was written by Sena De Silva (Deakin University) and Doris Soto (FAO). Box 10.8 on fuelwood saving fish processing technology was written by Yvette DieiOuadi (FAO). Box 10.9 on LIFE fishing was written by Petri Suuronen (FAO) and James Muir (FAO consultant). Box 10.10 on the role of trade was written by Victoria Chomo (FAO) and Cassandra De Young (FAO). Case study 10.1 on catfish farming was written by Sena De Silva (Deakin University) and Doris Soto (FAO). Case study 10.2 on integrated multitrophic aquaculture was written by Changbo Zhu (South China Sea Fisheries Research Institute) and Joao Ferreira (Universidade Nova de Lis- boa). Case study 10.3 on mussel farming was written by Ana Farias (Universidad Austral), Jose Luis Rodriguez (Instituto Gallego de Formación en Acuicultura), Doris Soto (FAO) and Iker Uriarte (Universidad Austral). Module 11 on sustainable and inclusive food value chains was written by Tamara van‘t Wout (FAO) and Reuben Sessa (FAO) with contributions from Martin Hilmi (FAO), David Neven (FAO), Robert van Otterdijk (FAO), Came- lia Bucatariu (FAO), Danilo Meja (FAO), Jogeir Toppe (FAO), Lucio Olivero (FAO), Sandra Corsi (FAO) and Alashiya Gordes (FAO). Module 12 on local Institutions was written by Patti Kristjanson (CCAFS/CGIAR), Alashiya Gordes (FAO) and Reuben Sessa (FAO) with contributions from Ademola Braimoh (WB) and Sonja Vermeulen (CCAFS/CGIAR). Module 13 on national policies and programs was written by Majory-Anne Bromhead (World Bank), and Reu- ben Sessa (FAO) with contributions from Savis Joze Sadeghian (FAO). The module was reviewed by Leslie Lip- per (FAO). Module 14 on financing climate-smart agriculture was written by Leslie Lipper (FAO) and Bjorn Conrad (FAO) with contributions from World Bank made by Ademola Braimoh, David Treguer and Marco Van der Linden. The module was reviewed by Elisabeth Barsk-Rundquist, Camilla Nordheim-Larsen and Siv Oystese at the Global Mechanism of the UNCCD. Additional contributions were also made by Luis Bockel (FAO), Uwe Grewer (FAO) and Savis Joze Sadeghian (FAO). Module 15 on disaster risk reduction was written by Monica Trujillo (FAO) with contributions from Stephan Baas (FAO) and reviewed by Jim Hancock (FAO) and Kennedy Igbokwe (FAO). Module 16 on safety nets was written by Catherine Zanev (WFP) and Carlo Scaramella (WFP) with contributions from Ugo Gentilini (WFP) and was reviewed by Niels Balzer (WFP), Volli Carucci (WFP), Al- exandra Guyetsky (FAO), Nyasha Tirivayi (FAO) and Tamara van‘t Wout (FAO). Module 17 on capacity development was written by Claudia Hiepe (FAO) and Patrick Kalas (FAO) with contribu- tions by Federica Matteoli (FAO), Katrin Nichterlein (FAO), Sibyl Nelson (FAO) and Janie Rioux (FAO). Box 17.1 was written by Janie Rioux (FAO). Box 17.5 was written by Sibyl Nelson (FAO). Box 17.8 was written by Karin Nichterlein and the TECA team (FAO). Box 17.9 was written by the CSDI team at FAO including Mario Acunzo, Federica Matteoli, Marzia Pafumi and Vanessa Vertiz. vii CLIMATE-SMART AGRICULTURE SOURCEBOOK Module 18 on assessment, monitoring and evaluation was written by Hideki Kanamaru (FAO) and Jim Hancock (FAO) with contributions from Louis Bockel (FAO), Ademola Braimoh (World Bank), Elisa Distefano (IFAD), Wiebke Förch (CCAFS), Uwe Grewer (FAO), Claudia Hiepe (FAO), Madeleine Jonsson (Swedish Cooperative Centre), Krishna Krishnamurthy (WFP), Sarshen Marais (Conservation South Africa), Federica Matteoli (FAO), Katia Medeiros (FAO), Sibyl Nelson (FAO), Christina Seeberg-Elverfeldt (FAO), Philip Thornton (CCAFS), Ophelie Touchemoulin (SAUR) and Tamara Vantwout (FAO). Figure 18.8 was created by Uwe Grewer (FAO). Box 18.1 was written by Hideki Kanamaru (FAO) with material provided by Christina Seeberg-Elverfeldt (FAO). Box 18.2 was written by Wiebke Förch (CCAFS) and Philip Thornton (CCAFS). Box 18.3 was written by Elisa Distefano (IFAD). Box 18.5 was written by Uwe Grewer (FAO), Ophelie Touchemoulin (SAUR) and Louis Bockel (FAO). Box 18.6 was written by Kanamaru with material provided by Sarshen Marais (Conservation South Africa). Box 18.7 was written by Madeleine Jonsson (Swedish Cooperative Centre). Box 18.8 was written by Hideki Kanamaru (FAO) with material provided by Tamara van‘t Wout (FAO). Box 18.10 was written by Hideki Kanamaru (FAO) with material provided by Federica Matteoli (FAO) and Madeleine Jonsson (Swedish Cooperative Centre). Box 18.11 was written by Hideki Kanamaru (FAO) with material provided by Christina Seeberg-Elverfeldt (FAO). Case Study 18.1 was written by Krishna Krishnamurthy (WFP). Case Studies 18.2 and 18.3 were written by Ademola Braimoh (World Bank). Many other individuals provided useful materials that were not included in the final version of the Sourcebook. They are: Nicholas Tyack (Global Crop Diversity Trust); Jody Butterfield (Africa Centre for Holistic Manage- ment) and Daniela Ibarra-Howell (Africa Centre for Holistic Management); Do Trong Hoan (ICRAF), Delia C. Catacutan (ICRAF) and Peter Minang (ICRAF); Jesús Quintana (IFAD) and Clarissa Baldin (IFAD). viii Executive summary Executive Summary Why is climate-smart agriculture needed? Between now and 2050, the world’s population will increase by one-third. Most of these additional 2 billion people will live in developing countries. At the same time, more people will be living in cities. If current income and consumption growth trends continue, FAO estimates that agricultural production will have to increase by 60 percent by 2050 to satisfy the expected demands for food and feed. Agriculture must therefore transform itself if it is to feed a growing global population and provide the basis for economic growth and poverty reduc- tion. Climate change will make this task more difficult under a business-as-usual scenario, due to adverse impacts on agriculture, requiring spiralling adaptation and related costs. To achieve food security and agricultural development goals, adaptation to climate change and lower emis- sion intensities per output will be necessary. This transformation must be accomplished without depletion of the natural resource base. Climate change is already having an impact on agriculture and food security as a result of increased prevalence of extreme events and increased unpredictability of weather patterns. This can lead to reductions in production and lower incomes in vulnerable areas. These changes can also affect global food prices. Developing countries and smallholder farmers and pastoralists in particular are being especially hard hit by these changes. Many of these small-scale producers are already coping with a degraded natural resource base. They often lack knowledge about potential options for adapting their production systems and have limited assets and risk-taking capacity to access and use technologies and financial services. Enhancing food security while contributing to mitigate climate change and preserving the natural resource base and vital ecosystem services requires the transition to agricultural production systems that are more productive, use inputs more efficiently, have less variability and greater stability in their outputs, and are more resilient to risks, shocks and long-term climate variability. More productive and more resilient agriculture requires a major shift in the way land, water, soil nutrients and genetic resources are managed to ensure that these resources are used more efficiently. Making this shift requires considerable changes in national and local governance, legislation, policies and financial mechanisms. This transformation will also involve improv- ing producers’ access to markets. By reducing greenhouse gas emissions per unit of land and/or agricultural product and increasing carbon sinks, these changes will contribute significantly to the mitigation of climate change. Defining the concept Climate-smart agriculture (CSA), as defined and presented by FAO at the Hague Conference on Agriculture, Food Security and Climate Change in 2010, contributes to the achievement of sustainable development goals. It integrates the three dimensions of sustainable development (economic, social and environmental) by jointly addressing food security and climate challenges. It is composed of three main pillars: 1. sustainably increasing agricultural productivity and incomes; 2. adapting and building resilience to climate change; 3. reducing and/or removing greenhouse gases emissions, where possible. CSA is an approach to developing the technical, policy and investment conditions to achieve sustainable ag- ricultural development for food security under climate change. The magnitude, immediacy and broad scope of the effects of climate change on agricultural systems create a compelling need to ensure comprehensive integration of these effects into national agricultural planning, investments and programs. The CSA approach is designed to identify and operationalize sustainable agricultural development within the explicit parameters of climate change. FAO and its partners are aware that achieving the transformations required for CSA and meeting these mul- tiple objectives requires an integrated approach that is responsive to specific local conditions. Coordination across agricultural sectors (e.g. crops, livestock, forestry and fisheries) as well as other sectors, such as with ix