For Immediate release
Climate Bonds Initiative and IFAD - United Nations Join Forces to Promote Sustainable Investments in Rural Transformation in Developing Countries
Rome/London, [3 May 2024] — The International Fund for Agricultural Development (IFAD) - United Nations and Climate Bonds Initiative have announced a new partnership aimed at promoting sustainable investments to drive rural transformation in developing countries. This collaboration marks a significant step towards enhancing financial support for climate resilience and sustainable agriculture.
The two organisations signed a letter of intent to collaborate on diversifying IFAD’s offerings to its clients by introducing a partial credit guarantee coupled with a Rural Transformation Financial Framework (RTFF). This framework will be integrated with Climate Bonds Initiative’s transition frameworks and criteria for decarbonisation within the agri-food sector.
Sean Kidney, CEO of Climate Bonds Initiative, commented: "Our collaboration with IFAD is a critical step towards bridging the gap between on-the-ground agricultural practices and the global financial markets. By integrating our decarbonisation frameworks with IFAD's rural transformation efforts, we aim to create scalable financial solutions that drive significant impact in climate resilience and sustainable agriculture."
The partnership aims to encourage and promote the establishment of national taxonomies to streamline the issuance of financial instruments related to rural agriculture, climate change, and resilience and mitigation efforts. By working closely with partner countries and their financial institutions, IFAD and Climate Bonds Initiative seek to create robust financial ecosystems that support sustainable development goals.
This partnership underscores a mutual commitment to strengthen the connections between farmers' actions in the field and the impact reporting of debt instruments traded on both domestic and international financial markets. The collaboration will result in concrete actions, including capacity building and technical assistance to institutions such as national development banks, regulators, and policymakers.
Through this joint effort, IFAD and Climate Bonds Initiative aim to foster a more sustainable and resilient agri-food sector, contributing to the overall well-being and economic stability of rural communities in developing countries.
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For more information, please contact:
For more information please contact: Leena Fatin, Climate Bonds Initiative, +44 759 3320 198, Leena.fatin@climatebonds.net
About IFAD
IFAD is an international financial institution and specialised United Nations agency based in Rome, the UN’s food and agriculture hub. Since 1978, we have provided US$23.2 billion in grants and low-interest loans.
About Climate Bonds Initiative: The Climate Bonds Initiative is a global not-for-profit organisation working to mobilise global capital for climate action. Climate Bonds Standard and Certification is a science-based, multi-sector certification scheme for investments – and now companies/entities – that address the challenge of climate change. www.climatebonds.net.