From Climate Readiness to Financial Benefit: How Climate-Adaptive Technologies Unlock Access to Affordable Financing and Insurance in Agriculture

Climate change is increasing risks for agricultural producers, as droughts, spring frosts and extreme weather events affect crop yields and financial stability. These risks can also increase borrowing and insurance costs, making investments in climate adaptation more difficult.

Climate-adaptive technologies and practices, such as drip irrigation, frost protection measures and soil moisture conservation, can help reduce agricultural losses and improve financial resilience. Verified adoption of these measures could also provide a basis for more favourable lending conditions and insurance premiums.

This COP31 side event is organised within the framework of the International Climate Initiative (IKI)-funded project PROGRESS – Promoting Green Deal Readiness in the Eastern Partnership Countries and will explore how verified climate-adaptive practices can help reduce financial risks and improve access to affordable credit and insurance for agricultural producers. Drawing on experiences from Ukraine and other Eastern Partnership countries, the discussion will examine the role of concessional lending, climate-smart insurance, guarantees and blended finance in supporting agricultural adaptation.

The event will bring together policymakers, financial institutions, insurers and international organisations to discuss practical approaches, institutional requirements and opportunities for cooperation to improve access to affordable agricultural finance.