Unlocking private sector potential for climate-resilient agriculture

To address these issues, the SCALA programme has facilitated stakeholder consultations and analytical work in collaboration with government institutions, producer organizations and private actors to promote climate-resilient practices and strengthen the cashew value chain. The findings point to the need for targeted adaptation measures, such as climate-resilient farming practices, improved post-harvest infrastructure and financing models that incentivize sustainable production. Together, these measures can enhance the sector’s resilience to future climate shocks. 

As part of the collaboration facilitated by the SCALA programme, the Agricultural and Rural Development Bank (ARDB) is offering green loans to farmers and cooperatives to support sustainable growth in the cashew value chain. These loans are contingent on compliance with environmental safeguards, such as avoiding deforestation and adopting more sustainable land-use practices. 

Furthermore, since Cambodia exports most of its cashew in raw form – limiting opportunities for value addition, job creation and domestic economic growth – the Cambodia Cashew Federation (CCF) has played a key role in identifying opportunities for investments in local processing and exploring cross-border collaboration with more established processors in neighboring Viet Nam.

Together, these measures aim to reduce environmental degradation, create added value through local processing and support the transition to climate-resilient cashew production systems that benefit both producers and ecosystems.

Climate-resilient cashew and cassava in Côte d’Ivoire

Côte d’Ivoire is the world’s top producer of raw cashew nuts and a regional leader in cassava production. Both crops are essential for rural incomes, food security and employment, particularly for women involved in processing.

Cashew trees can accommodate moderate dry spells and, therefore, hold strong potential as a climate-resilient crop. Cassava, as a staple food, is key to local diets and is commonly processed into attiéké, a traditional Ivorian dish. However, both value chains face challenges related to efficiency, investment and climate vulnerability.

The SCALA programme interviewed actors across both value chains, from producers to international wholesalers and scientists, to identify barriers to private sector investment and strategies to unlock climate-resilient growth. A multi-stakeholder dialogue was then convened, bringing together representatives from the public sector, private companies, cooperatives and local banks, to discuss and validate these findings and agree on potential de-risking measures to facilitate investment in climate-resilient cashew and cassava production.

A key challenge that emerged in the consultations was that financial institutions often view small-scale producers as high-risk due to lack of collateral and formal financial records. The multi-stakeholder dialogues identified a series of measures that could help de-risk these investments. 

For example, digital platforms that pool producer data and credit histories could help mitigate risks, making lending more viable for banks and improving access to credit for farmers. Bundling credit with crop insurance and technical assistance can also reduce the risk of crop failure while supporting smallholder resilience and business viability. Furthermore, training local banking agents on climate-smart financial products can help popularize them and incentivize their adoption.

Another measure that could improve the value chains in both sectors is incorporating gender considerations into investment plans. For example, since women play a central role in cassava processing and are also actively engaged in cashew processing, improving processing efficiency could significantly boost incomes for women-led cooperatives and businesses, while making the products less perishable. 

Côte d’Ivoire is also working on attracting investments that ensure gender considerations are integrated into value chain development by using the UNDP-FAO Climate Action Review tool developed under the SCALA programme.

Deforestation-free beef production in Costa Rica 

Costa Rica has assumed a global leadership role in biodiversity conservation and climate action, demonstrating its commitment to sustainability through progressive policies and strategic frameworks. However, implementation challenges persist, particularly in productive sectors such as livestock farming, which has historically contributed to deforestation and land degradation. 

To address these issues, Costa Rica developed a national technical standard for deforestation-free beef. With support from the SCALA programme, the Ministry of Agriculture and Livestock (MAG), the Livestock Corporation (CORFOGA) and the National Standards Body of Costa Rica (INTECO) jointly developed the standard, which provides guidelines for certifying deforestation-free beef production and promotes environmentally sustainable practices, animal welfare and traceability throughout the entire value chain.

A pilot project in the Brunca region tested the application of this certification in fifteen cattle farms, supporting the implementation of sustainable practices such as silage production and the establishment of fodder banks to ensure feed availability during both dry and rainy seasons. These practices enhance resilience to climate variability and support year-round livestock productivity. Participants in the pilot also receive technical assistance from MAG and CORFOGA, including support for adopting climate adaptation measures and preparing for future certification.

In parallel, the Osa Conservation Foundation worked with participating farms to develop farm plans and provide basic investments that enable producers to meet these certification standards. These actions also contributed to regional reforestation and habitat restoration goals, as outlined in the country’s National Adaptation Plan (NAP). 

The SCALA programme also conducted a market study to assess the current and potential demand for deforestation-free beef and differentiated dairy products. This research is helping identify new strategies for Costa Rican producers to access environmentally conscious markets.

As part of its gender mainstreaming efforts, SCALA also facilitated the development of a Gender and Social Inclusion Roadmap for Women in Livestock. This process included consultations with over 120 women and sector stakeholders from six regions in the country, identifying specific needs and opportunities to enhance women’s participation and leadership in sustainable livestock systems.

The private sector is key for a resilient future

With its resources, innovation and influence on agricultural value chains, the private sector has a vital role to play in advancing national climate goals in agrifood systems. By investing in climate-resilient solutions, businesses can transform production systems, reduce emissions and enhance the resilience of communities, ecosystems and economies. 

Regulatory shifts such as the European Union Deforestation Regulation (EUDR) are also creating new incentives for investment in sustainability and resilience. As markets increasingly demand deforestation-free and traceable products, producers must adapt not only to climate risks but also to evolving trade requirements. These dynamics present an opportunity to align adaptation goals with market competitiveness.

Realizing the potential for the private sector to drive climate action in the agriculture sector will require continued collaboration, enabling policies and innovative financing. Through public–private action and inclusive partnerships, the work that the SCALA programme is conducting in Cambodia, Côte d’Ivoire and Costa Rica demonstrates that sustainable, resilient value chains are not just possible but already taking shape.

Funded by Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN) through its International Climate Initiative (IKI), the UNDP-FAO SCALA programme supports private sector engagement in climate action across 23 countries by identifying challenges, mapping investment opportunities, and co-developing project concepts aligned with national climate goals. Through its Private Sector Engagement Facility, SCALA delivers targeted technical support and tools to bridge public priorities with private solutions and scale inclusive, sustainable investments.