As we approach the United Nation’s (UN) 28th Conference of the Parties (COP) in the United Arab Emirates (UAE), First Abu Dhabi Bank (FAB), International Islamic Trade Finance Corporation (ITFC) and KPMG are delighted to unveil a strategic paper highlighting the pivotal role of financial institutions in advancing food security and addressing the pressing challenge of climate change in the Gulf Cooperation Council (GCC) countries.
Banks, investors, regulators, and multilateral institutions emerge as indispensable partners in our shared mission to achieve global climate and food security objectives. With the world’s population projected to reach 9.7 billion by 2050, the choices we make today will exert a profound influence on our capacity to ensure food availability and safeguard the environment for generations to come.
The challenges of food security and climate change necessitate a unified approach spanning all sectors of society. Financial institutions are at the heart of this collective endeavor, providing vital support for the technologies and projects essential to shaping our planet’s future and preserving the integrity of our food systems.
The landscape of food security is one underpinned by complex interactions between food, water, and energy systems and closely intertwined with climate change. GCC countries operating in a context of high food import, oil dependence, and water scarcity are on a path to build resilience and explore solutions for more sustainable food systems that meet the growing population’s needs.
Leveraging finance can be a catalyst for a menu of possible solutions. Targeted sustainable finance instruments can unlock the widespread adoption of state-of-the-art agricultural technologies, innovative value chain processes, and eco-inclusive farming methodologies in the GCC and across global value chains.
Our research explores these solutions through the lens of financial institutions, offering recommendations on policy, finance, and agribusiness levels to enhance food security, address climate change, and promote water sustainability. By harnessing the expertise and resources of financial institutions, we lay the groundwork for a sustainable and resilient future that yields benefits for a variety of stakeholders as we work towards building a more secure and environmentally responsible world.