10-15% of climate finance should be directly accessible to farmer organisations: Experts

Highlights:

• Small-scale farmers receive only 0.12% of global climate finance
• Just 17% of smallholder farmers have access to institutional finance
• Farmers contribute 12.9% to GDP and sustain 16m rural families
• Smallholders urged to demand climate justice ahead of COP30

Experts have called for greater access to climate finance, suggesting at least 10-15% should be directly accessible to farmer organisations. 

Small-scale farmers and fishers receive only a fraction of global climate finance, with just 0.12% reaching smallholders and 0.8% allocated to the broader small-scale agrifood sector, they said at a roundtable hosted by The Business Standard today (24 September).

Even major adaptation investments, such as IFAD's $502.7 million global funding – 78% of which targets smallholders – rarely provide direct access to farmers' organisations, they said at the event on "COP30: Challenges and Expectations for Small-scale Farmers and Fishers."

The discussion, organised by COAST Foundation, highlighted that just 17% of smallholder farmers in Bangladesh have access to institutional finance. The economic and environmental pressures faced by farmers, who contribute 12.9% to GDP and sustain 16 million rural families.

Sanat Kumar Bhowmik, deputy executive director of COAST Foundation, said government concessional loans at 4% interest remain largely inaccessible due to "poor banking infrastructure and regulatory hurdles." Consequently, farmers and fishers rely on informal loans with interest rates as high as 40%.

"Every climate shock increases future National Adaptation Plan (NAP) and Nationally Determined Contribution (NDC) costs if farmers are not empowered with adaptation tools," he warned.

Alauddin Sikdar, president of Kendrio Krishok Moyitree, described the impact of salinity intrusion and water scarcity in southern Bangladesh. 

"Without repairing embankments and sluice gates, farmers can't survive. We need to preserve local seeds and directly involve farmers in projects so we can play a real role in fighting climate change," he said.

Gawher Nayeem Wahra, member secretary of Disaster Forum, said mismanagement of rivers, not climate change alone, drives water crises. 

"Almost 80% of the crisis comes from our mismanagement of water, and only 20% is due to climate change. Unless rivers are allowed their rightful share of water, no adaptation plan will succeed," he said, adding that farmers have lost control over their land, forcing overuse of fertilisers and pesticides.

Harjeet Singh, global engagement director of the Fossil Fuel Non-Proliferation Treaty Initiative, urged smallholders to demand climate justice. 

"This must be the moment when small farmers and fishers unite and demand their right to livelihoods, dignity, and a safe future," he said, warning against another "conference of empty promises" at COP30.

M Rezaul Karim Chowdhury, executive director of COAST Foundation, said, "As Bangladesh prepares for COP30, small-scale farmers and fishers must participate in national adaptation and NDC plans and receive 15–20% of funds for local adaptation projects," he said. 

He also called for legal recognition of women and youth farmers and direct access to climate funds, alongside investment in post-harvest infrastructure such as cold storage, transport, and market linkages.

Md Amirul Islam, operations manager for East, Central, and South Asia at AFA, said, "Our small farmers and fishers are among the worst affected by climate change. Their voices must be included in policymaking, and Bangladesh's COP30 representatives must carry these recommendations with them."

The roundtable took place as Bangladesh prepares to submit its updated NDC 3.0 at COP30, underscoring the challenges to resilience and the livelihood losses faced by farmers and fishers on the climate frontline.

COP30 will take place in the city of Belém in Brazil on 10-21 November 2025.

According to a new report from the World Economic Forum, climate-driven health risks could cost the global economy $1.5 trillion in worker availability losses by 2050.

Frontline sectors are most at risk. Agriculture could lose $740 billion in output, the built environment $570 billion in productivity, and healthcare $200 billion, it said.