At the upcoming COP30, the International Fund for Agricultural Development (IFAD) is making a powerful case that investing in climate adaptation — particularly in small-scale farmers — delivers not just environmental resilience, but strong economic and social returns.
In its new publication, Adaptation Finance: Building the Investment Case, IFAD demonstrates how climate adaptation can serve as an engine of economic opportunity. The report outlines strategies to make adaptation projects “bankable,” linking financial performance with measurable social and environmental outcomes.
“We must stop seeing investments in adaptation as a sunk cost and start viewing them as an economic opportunity,” said Alvaro Lario, IFAD President. “These investments protect livelihoods, sustain growth, and strengthen both economic and social stability.”
Evidence from IFAD-backed projects underscores this argument. In Bangladesh, an IFAD initiative generated a 35% annual return on investment, increasing incomes for five million people through climate-resilient roads and markets. Transport costs fell by 60%, trade rose by 75%, and post-harvest losses dropped by 30%.
Globally, IFAD data shows that every $1 invested in climate adaptation yields more than $10 in benefits, including higher incomes, job creation, and better health and biodiversity outcomes. Projects in deep rural areas have delivered income gains of up to 50% for small-scale producers, helping communities adapt while enhancing productivity and market access.
The organization stresses that the need for adaptation finance in developing countries is now 12–14 times greater than current investment levels. IFAD is positioning itself as a platform to channel blended finance, mitigate risk, and connect private investors directly with rural communities.
With smallholder farmers producing up to 70% of Africa’s food yet receiving less than 1% of total climate finance, IFAD is calling for urgent collaboration between governments, financiers, and the private sector to scale adaptation efforts and secure the future of global food systems.
