CompensACTION aims to reward farmers for climate performance

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The CompensACTION Initiative for food security and a healthy planet, launched by the German Federal Ministry for Economic Cooperation and Development (BMZ) in 2022, is gaining momentum. It aims to financially compensate smallholder farmers for their contribution to preserving ecosystems and thus create incentives for climate, biodiversity and environmental protection.  Initial successes have been achieved in Ethiopia, Lesotho and Brazil.

© GIZ / Binh Dang

By CompensACTION

The initiative CompensACTION for food security and a healthy planet was launched in July 2022 under German G7 Presidency by the BMZ within the Food Security Working Group.

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Around 84 percent of all farms worldwide are smaller than two hectares. A large proportion of these are run by smallholders in partner countries. They make a significant contribution to preserving ecosystems: According to estimates, at least one-third of family farms follow agroecological principles in whole or in part. They should be adequately compensated for services such as these. This requires compensation mechanisms that combine income from agricultural production with a payment for positive externalities. This is where CompensACTION comes in.

 

Ich bin ein Alternativtext
CompensACTION aims to reward farmers for climate performance. © GIZ

CompensACTION was launched in July 2022 under the German G7 Presidency by the German Federal Ministry for Economic Cooperation and Development (BMZ) as part of the Working Group on Food Security. It is implemented by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH together with its partner CLIMEAT. The initiative aims to promote so-called Payment for Ecosystem Services (PES) innovations on a large scale.  These can include CO2 storage, water and soil conservation, biodiversity protection and other activities for which farmers are rewarded. Some of this already exists in the European Common Agricultural Policy. A strip of old grass, a late-mown meadow or supplementary flowering strips lead to higher subsidies in Germany.

 

CompensACTION plans to increase the income of small farmers in low- and middle-income countries as well. To achieve this, the initiative has already started the first pilot projects with support from the International Fund for Agricultural Development (IFAD).

 

In Ethiopia, CompensACTION is promoting agroforestry. The project aims to introduce sustainable agricultural practices on 25,000 hectares of land that sequester at least 2.2 tons of CO2 equivalent, a bundle of different greenhouse gases, per hectare per year In addition, more than 8,000 households are to increase their income by trading carbon credits. CompensACTION also provides incentives for nature- and climate-positive agriculture in Lesotho and Brazil.

 

In Brazil, it supports the establishment of a financing system for deforestation-free value chains. In the first step, a partner organization of IFAD identifies relevant ecosystem services. In the next step, it develops the mechanisms to reward smallholder farmers for these services. CompensACTION plans to work with 1,500 families to sustainably manage about 10,000 hectares of forestland starting in 2024.

 

In Lesotho, there is a national fund for payment for ecosystem services (water efficiency, biodiversity promotion/conservation, carbon abatement/sequestration). This is expected to reach up to 40,000 people and is designed to continue beyond the life of the project. The CompensACTION initiative disseminates experiences from another BMZ-funded pilot: Refinancing a system of agricultural extension services for 30,000 farmer families by introducing agroecological practices in western Kenya (on 11,000 ha, each with 3.6 tons CO2 equivalent/ha/year).

 

Curious? Looking for support or exchange regarding similar projects? CompensACTION is open to collaborating to implement projects and sharing ideas about compensation mechanisms. We look forward to hearing from you (compensaction@giz.de). More info is also available on our new website Compensaction.

 

 

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After four years of the Bolsonaro administration, the new Brazilian government is trying to restart its engagement in agroecology, fighting deforestation in the Amazon and protecting indigenous communities and poor families from hunger. An interview with the Vice-minister for Rural Development and Family Farming, Fernanda Machiaveli.

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“We have to focus on sustainability”

An interview with Karen Mapusua

Karen Mapusua, President of IFOAM Organics International Network, on the danger of the current fuel crises and inflation to loose track in sustainablity, why organic farmers should be heard and how the word “crisis” has a very different meaning where she lives in Fiji.

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Governor's Day with Farmers – For more discussion with local actors

A contribution by William Onura and Larissa Stiem-Bhatia

In agriculture it is important to include political stakeholders in the discourse. To build the bridge between practical application and political action, the think tank TMG launched the Governor's Day with Farmers in Kakamega County, Kenya. Now it took place for the second time. But what are the goals and benefits of the Governor's Day?

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The goals of transformation should leave no one behind

An Interview with Mareike Haase and Stig Tanzmann

Four interviews kick off the relaunch under the new name „Food4Transformation“, asking the same questions from different perspectives. Mareike Haase and Stig Tanzmann from Brot für die Welt explain why the right to food, inclusivity, agroecology and food sovereignty are the central levers for a successful transformation.

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Agricultural policy belongs in prime time

An interview with Dr. Julia Köhn

Four interviews kick off the relaunch under the new name „Food4Transformation“, asking the same questions from different perspectives. Dr Julia Köhn, Chair of the German AgriFood Society, points out in the interview: Only if innovation and transformation are profitable in the medium term can they close the food gap in the long term.

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From field to fan shop: how to increase supply

A contribution by Jan Rübel

Organic cotton is extremely popular – but farmers still find it difficult to change their conventional cultivation methods. A new project addresses this dilemma: Bundesliga football teams in Germany are promoting the switch to organic cotton in India. And thereby setting an example.

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How a Nigerian fintech wants to secure 1 billion US dollars for farms

An Interview with Blessing Mene

Small farmers often have a hard time getting financing. An app in Nigeria wants to change that: Founder Blessing Mene about what his app offers - and about the opportunities and limitations of agricultural financing.

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BMZ releases video on the transformation of agricultural and food systems

A contribution by GIZ

The Federal Ministry for Economic Cooperation and Development (BMZ) has released a video on the transformation of agricultural and food systems. In the video, Federal Minister Svenja Schulze also speaks about the urgent need to combat global hunger and contribute to resilient agricultural and food systems.

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The rush for green energy shouldn’t undermine rights of pastoralist communities

A contribution by Hussein Tadicha Wario

Africa’s drylands seem to be predestined for generating solar and wind power – especially given the current hype over green hydrogen. However, pastoral communities are often put at a disadvantage in this respect. Our author describes the arising conflicts and what successful coexistence of green energy projects and the communities could look like.

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The Agri-Food Map: An interactive map to explore sustainable agri-food systems

A Contribution by GIZ

The complex interrelationships of the sustainable transformation of agricultural and food systems are not always easy to understand - the Agri-Food Map, an interactive online app, makes the comprehensive relations accessible by providing a wide range of comprehensibly prepared information.

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Climate change mitigation and adaptation strategies for the African livestock sector

A Contribution by ILRI and GIZ

The production of animal-source foods is becoming increasingly difficult due to the impact of climate change on the livestock sector in Africa. Though, Livestock make a crucial contribution to food security in Africa. Three papers by the Federal Ministry for Economic Cooperation and Development (BMZ), GIZ, ILRI and World Bank analyze, how Africas future livestock sector can look like.

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New Podcast – Out now!

A Podcast by Food4Transformation

In a world facing crises – from pandemics, armed conflicts, and climate change – how do we ensure everyone has enough food within planetary boundaries? A new podcast by Food4Transformation discover solutions talking to government officials, scientists, NGOs and farmers around the world.

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Blooming landscapes? Only with biodiversity!

A Contribution by Arne Loth

What do chocolate, carrots and tequila have in common? What sounds like the ingredients for an experimental cocktail are foods that would not exist without certain animal species. They are examples of how nature works for us every day, often behind the scenes.

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Together for food security in Zambia

A Contribution by Claudia Jordan (GIZ)

The Agriculture and Food Security Cluster of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH in Zambia shows how synergies among different projects and partner organisations can help people to eat healthier, diversified food. A delegation of the Bonn based Division of Agriculture and Rural Development learned this in a field visit in the Eastern Province of the Southern African country.

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Reforming agricultural policies to sustainably transform food systems

A Contribution by IFPRI

Global food systems are confronted with multiple stresses. It is more urgent than ever to make them more resilient, healthier and more sustainable. A key tool in such a transformation is reforming agricultural policies and repurposing agricultural support, as discussed in an online seminar co-organised by the International Food Policy Research Institute (IFPRI).

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The Idea of Coffee entirely made by Women

A Conversation with Allan Mubiru

Allan Mubiru was standing in front of a shelf in Kigali, Rwanda, and discovered a local type of coffee. He took it, tasted it and was thrilled. A story about a grocery shopping trip that became the beginning of a successful business idea.

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The Answer is Healthy Soil

A Conversation with Nina Mannheimer

The Berlin start-up Klim is forging an alliance between farmers and companies. The aim is to use regenerative farming to remove CO2 from the atmosphere and sequester it as carbon in the soil. An interview with Nina Mannheimer.

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From the perennial to the catwalk – banana silk as an alternative

A Contribution by Paul Kadjo

The textile industry contributes significantly to environmental pollution as it produces over 100 billion garments every year, resulting in huge CO2 emissions and water consumption. Fashion designer Paul Kadjo uses banana silk as an environmentally friendly alternative to make textile production more environmentally conscious and socially just.

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Climate Resilience in the Apple Value Chain

A Contribution by Puneet Bansal

In Himachal Pradesh, India, natural disasters are becoming more frequent and climatic conditions are changing – with negative consequences for apple production and farmers' livelihoods. Holistic and multidimensional innovation bundles are required for the entire value chain in order to make the food system more resilient in the future.

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