Paris Alignment - Greenhouse Gas Accounting Analysis for IFAD’s investment portfolio in the AFOLU sector

Human influence has unequivocally warmed the atmosphere, ocean and land. Since the industrial era, our planet has already warmed by approximately 1.1°C compared to pre-industrial levels. Climate change is already stressing food and forestry systems, with negative consequences for the livelihoods, food security and nutrition of hundreds of millions of people. These negative impacts are expected to worsen without urgent action with global surface temperatures potentially exceeding 4°C by the year 2100 for a high greenhouse gas emission scenario (RCP8.5).

As an international financial institution with the specific mandate to eradicate poverty and hunger by investing in poor rural people, IFAD has a direct impact on greenhouse gas emissions in the AFOLU sector. The Greenhouse Gas Accounting Analysis for IFAD’s investment portfolio in the AFOLU sector considered the likely impact of IFAD projects on carbon stock changes and greenhouse gas emissions. Based on a representative sample analysis, IFAD’s investment portfolio is a net carbon sink, with carbon sequestrations and GHG emission reductions exceeding overall GHG emissions (using a Tier 1 approach for Scope 1 GHG emissions).

The study is part of a broader Paris Alignment Roadmap, which will ensure that IFAD can play a key role in supporting countries in realising their climate action plans in the small-scale agriculture and rural sphere through low-emission, climate-resilient and just transition pathways that contribute to the achievement of the Sustainable Development Goals (SDGs).