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 CompensACTION logo features green and blue text with leaf and human elements symbolizing growth and action.

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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An Interview with Dirk Meyer (BMZ)

Development cooperation needs to place good governance and a sustainable agri-food systems transformation at its center: After the first 100 days in office have passed, Dirk Meyer from the German Development Ministry (BMZ) spells out the goals, guidelines and priorities of the Ministry’s new lead.

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A bunch of yellow bananas is displayed with a purple banner promoting fair trade and climate awareness.

Fair Trade and Climate Justice: Everything is Conntected

A Contribution of the 'Initiative for Sustainable Agricultural Supply Chains' (INA)

Fair Trade organisations and the Initiative for Sustainable Agricultural Supply Chains (INA) have launched the #ichwillfair campaign during COP26 to highlight the link between global supply chains and climate change.

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Flags of various countries flutter outside the COP27 venue against a clear blue sky.

COP27: Agri-food systems in the focus of the climate discussion

Stephanie Heiland, Project Manager at Sector Project Agriculture and part of this year’s Observer Delegation of the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) at COP27, shares her insights on the role of agriculture and food systems at the climate conference. Among other things, she reports from GIZ’s COP27 side event ‘Climate resilient agriculture and food systems in times of multiple crises and fragility’.

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Four individuals stand smiling at the Food Systems Pavilion during the COP27 event in Egypt, 2022.

G7 Sustainable Supply Chains Initiative: From Commitment to Action

Future generations need more sustainable and stable agri-food systems. But how can this comprehensive transformation succeed and what responsibility does the private sector bear? These questions were the focus of the G7 Sustainable Supply Chains Initiative (G7 SSCI) side event as part of the ‘Champion Youth Action’ day at the 27th UN Climate Change Conference (COP27).

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The cracked earth of a drought-stricken landscape is illuminated by a vibrant sunset behind sparse bushes.

Climate, biodiversity and nutrition are inextricably linked

The Federal Ministry for Economic Cooperation and Development sees sustainable agri-food systems as an opportunity to protect the climate, preserve biodiversity and ensure food security in the future. Dirk Meyer, Head of Directorate-General 1 at the Federal Ministry for Economic Cooperation and Development, looks ahead to the upcoming COP27.

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Two people work in a lush green field with a mountainous backdrop, emphasizing sustainable farming.

Why biodiversity is important for climate protection & food security - and vice versa

The world is facing major challenges that need to be solved. We need to feed an ever-growing population, bring climate change under control and stop the loss of biodiversity. Martina Fleckenstein, Director of Global Policy at WWF, on what is expected from the climate conference in terms of biodiversity and biodiversity conservation.

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Women in colorful attire sift grains under a sunny sky, engaging in traditional agriculture. | © GIZ Joerg Boethling

What connects gender and the environment

Women can play a vital role in the change process both when it comes to climate protection and adapting to climate change. But the reality is often still not quite like this: women and girls are particularly badly affected by the climate crisis. Is the topic of gender getting enough attention at the upcoming climate conference? Questions for Bettina Jahn from UN Women Germany.

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A modern, angular building with geometric windows stands beside flags at the LCOY event, surrounded by autumn trees.

Social justice and climate justice: Fair Vibe at the Youth Climate Conference

At LCOY Germany, the local youth climate conference, views on climate protection from all political spectrums are discussed. The Fairactivists, a programme of Fairtrade Germany, participated with a panel discussion on the link between social justice and climate justice.

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The image illustrates five climate-friendly agricultural methods with simple line drawings and highlighted text.

Five climate-friendly methods in agriculture

A Listicle for climate protection and adaptation

These five management practices can increase agricultural production and contribute to climate change mitigation and adaptation.

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A young plant grows in dry, sunlit soil, symbolizing agricultural resilience in Iraq.

“It created hope. It created a life”

An interview with Ally-Raza Qureshi, WFP

Iraq suffered many years of war, sanctions and economic crises. However, Ally-Raza Qureshi from the World Food Programme in Iraq sees progress. But now the effects of climate change are becoming apparent in the country. What is to be done?

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A person drives a blue tractor through a lush cornfield on a sunny day.

Farmers reap big from Climate Smart Farming

An Article by Angeline Ochieng & Victor Raballa

Journalists Angeline Ochieng and Victor Raballa visited Ms Bilha Munyole, a Kenyan farmer in Kimilili, Bungoma County, on her maize plantation. About the important role of mechanisation in climate-smart agriculture and in building resilience to the impacts of climate change.

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Participants attentively listen during a policy briefing session in a well-lit conference room.

Think20 Policy Brief centres on Agroecology

Insights from the T20 Policy Brief

Given the urgency of transforming agricultural and food systems, GIZ India's Food Systems and Agroecology Working Group is exploring the potential of agroecology in collaboration with Think20 partners. A policy brief has now been published.

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Sparse desert vegetation stretches across a vast, sandy landscape under a clear blue sky. | © GIZ Fouad Bestandji

"Climate change is unifying people from the region"

A Contribution by Jan Rübel

In the West Bank, political tensions and increasingly poor weather conditions are making farming more difficult. What needs to be done? Questions for Abbas Milhem, Executive Director of the Palestinian Farmers Union (PFU).

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A woman in a white shirt and colorful skirt smiles while sitting outdoors, surrounded by lush greenery, promoting Fairtrade.

Earth’s well, all’s well!

A Contribution by Fairtrade Germany

With the annual topic "Earth’s well, all’s well!", Fairtrade Germany is focusing on the concept of agroecology at all levels - and is thus taking the next step towards achieving greater global sustainability. At the Green Week trade fair, Fairtrade Germany will show how this can be achieved taking the cocoa supply chain as an example.

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A smiling woman in colorful attire stands confidently in a blooming mustard field on a bright day.

Sowing change

A Contribution by Brot für die Welt

Roughly 800 million people suffer from hunger worldwide. Change is needed - for people and for the environment. Brot für die Welt reports on the starting points offered by everyone's ecological footprint and handprint.

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A diverse group of people gathers for a photo at a UN event focused on desertification and drought awareness.

A Call to Action against Desertification

A contribution by GIZ

Every second, worldwide, we lose valuable and healthy soil with the size of four football fields. This was only one of the many facts being presented to a wide audience in Bonn and worldwide via livestream at the World Desertification and Drought Day on 17th June 2024. This was the 30th anniversary of the United Nations Convention on Combatting Desertification (UNCCD), which was celebrated at the Bundeskunsthalle in Bonn.

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A group of diverse professionals stands together at a CAADP event, with a presentation screen in the background.

African Union sets the Way for the Future

A Contribution by GIZ

From January 9 to 11, 2025, heads of state and government of the African Union met in Kampala, Uganda. With a clear vision and concrete measures, the Kampala Agenda aims to make the continent's agricultural and food systems climate-resilient, fair and future-proof by 2035.

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Delegates sit around a large conference table at the Global Forum for Food and Agriculture, discussing sustainable practices.

Bioeconomy: Ready for a Joint Take-Off?

A Contribution by GIZ

The bioeconomy movement is fundamentally changing agriculture and food production: through innovative ideas, environmentally friendly approaches and the realization that we need to work together globally to ensure that change truly benefits everyone. At this years’ German Forum for Food and Agriculture (GFFA), the German Federal Ministry for Economic Cooperation and Development (BMZ) focused on this topic.

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Participants engage in discussions during the SOILution P4C conference, with speakers addressing the audience from a stage.

Elevating Soil Health for a Sustainable Future

A Contribution by Kah Walla

In May, this year's "Partners for Change – SOILutions for a Food Secure, Resilient, and Sustainable Future" conference took place. Kah Walla, Moderator of the Conference and Director of Strategies!, summarises the discussions and declares that healthy soils are not just the foundation of agriculture, but the cornerstone of a resilient, equitable, and climate-smart future.

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Two men in a lush field discuss data sovereignty, holding papers amidst workers gathering crops.

Empowering farmers to control their own data

A contribution by GIZ

A new study on the digitalisation of agriculture puts farmers back at the centre of their own sector, identifies market gaps and gives recommendations on how to support relevant actors.

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Four people engage in a panel discussion at a podium, with a backdrop featuring agricultural imagery.

And a semicolon in the middle

A contribution by Jan Rübel

After a two-year break due to Corona, the doors of the International Green Week (IGW) in Berlin are opening again. From 20th to 29th January, visitors from all over the world can discover, marvel and taste the produce. But the event is not only feasting and fun. The BMZ stand asks questions about where food comes from & where it goes – and in the process becomes a crash test for many habits.

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Golden hay bales rest on a sunlit stubble field under a clear blue sky, evoking a tranquil rural landscape.

How farmers are facing the crisis

A contribution by GIZ

Russia's war against Ukraine and its impact on food, energy and fertiliser prices is worrying farmers all over the world. Young farmers, farmer organisations and politicians from Kenya, Chad and Ukraine tell their stories and what keeps them in agriculture.

 

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A woman in glasses and a patterned coat gestures while engaging in conversation at a social gathering.

Priscilla Impraim and her chocolate business

A contribution by Jan Rübel

Priscilla Impraim is one of the first women in Ghana to enter the chocolate business. Despite some hurdles, she founded the company Ab Ovo Confectionery Limited in 2006 with currently six permanent employees and 25 seasonal employees.

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A farmer irrigates a lush green field with a hose under a clear sky in Tanzania, utilizing solar irrigation techniques.

Water may offer the only chance

Interview with Caroline Milow and Ramon Brentführer

Groundwater resources remain dormant in the soil of African regions. Where does it make sense to use them – and where does overexploitation of nature begin? Caroline Milow (GIZ) and Ramon Brentführer (BGR) talk about potentials in the future and lessons from the past.

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Hands display a colorful variety of chillies, including red, green, and orange, showcasing 2023 Black Mamba chillies.

Sandisiwe Dlamini and the chilli pepper business

A portrait by Jan Rübel

By processing chilli peppers, Black Mamba wants to give something back to the rural population. In a short portrait, Sandisiwe Dlamini, Food Safety Officer, reveals how.

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A winding road cuts through lush green mountains under a vast, clear sky, showcasing nature's breathtaking beauty.

“We want to overcome hunger and poverty”

An interview with Fernanda Machiaveli

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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An aerial view of a rural village showcases a network of dirt roads winding through houses and greenery.

“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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A man in a suit speaks at a podium under a colorful tent during a Farmers Day event.

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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Women in colorful attire joyfully thresh grain in a sunny, rural field, showcasing agricultural teamwork and tradition.

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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Young green seedlings sprout from the soil, showcasing new growth in a lush garden setting.

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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A goat grazes in a lush field near a charming house surrounded by palm trees under a clear sky.

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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Aerial view of two people guiding oxen across a red, plowed field, highlighting agrifood transformation themes.

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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Wind turbines stand on a lush rural landscape, harnessing green energy under a cloudy sky.

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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An illustrated map showcases diverse agricultural and food-related activities on a vibrant island setting.

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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A woman feeds sheep in a rustic pen while a man observes during an agricultural event. | © Apollo Habtamu ILRI

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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A smartphone displays the "Food 4 Transformation" podcast screen, flanked by wireless earbuds on a wooden surface.

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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Two vibrant hummingbirds interact on a branch amidst lush greenery in Ecuador.

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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A group of people kneel on the ground in Zambia, engaged in a discussion around a small agricultural plot.

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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A woman with pink earrings smiles while sitting in a sunny wheat field, under a clear blue sky.

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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A person stands joyfully with outstretched arms in a creatively decorated atelier featuring golden accents and various artworks.

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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A person in a blue sleeve harvests ripe coffee cherries from a vibrant coffee plant.

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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A freshly plowed field stretches under a cloudy sky, bordered by trees and distant hills. | © GIZ

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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A woman in a pink headscarf and floral dress stands confidently in a lush garden. | © Claudia Jordan

Stick together and learn from each other

By Claudia Jordan

During the Women Leadership Programme in May 2024, around 20 women from African countries and Germany met again for a one-week workshop in Bavaria, Germany to become fit for leadership in their organisations. One topic that concerns the women across countries is climate change, but also violence against women and their discrimination in agriculture.

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Women in colorful attire harvest apples from a lush orchard, placing them into yellow baskets.

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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A woman in a red headscarf observes young plants growing in a greenhouse, tending to them carefully.

Uprooting the Norm

A Contribution by GIZ

As a passionate social scientist and entrepreneur from Malawi, Ngabaghila Chatata knows that she can overcome any challenge. Her story stands out in a country faced with high unemployment, particularly in its rural areas. As the managing director of Thanthwe Farms, she has set out to inspire the next generation of young agripreneurs – proving that successful business starts with the right mindset, not only capital.



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A diagram illustrates the concepts of decent livelihoods, resilience, protected environment, fairness, and healthy diets globally.

A framework for sustainable and fair agriculture and food systems

A Contribution by Gideon Tups

The guiding orientation framework developed by the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) summarizes the requirements for the transformation of agriculture and food systems – and identifies principles and approaches for transformative change.

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A diverse group of women joyfully pose together on a rooftop, celebrating female leadership and empowerment.

Female Leadership: A Key Lever for Transformation?

A Conversation with Carmen Torres Ledezma & Oluwaseyi Kehinde-Peters

Female Leadership is vital to the transformation of agriculture and food systems. Therefore, it is so important to advance gender-sensitive approaches to increase the presence of women in leadership positions in agricultural production and to make these systems more equitable, sustainable and resilient.

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A woman in a blue sari arranges white silk cocoons on a woven wall in a rural setting.

Gender-Transformative Approaches – Unlocking Everyone’s Potential

A Contribution by GIZ

Studies show that women often manage agricultural resources more effectively and sustainably. With equal access to production resources, agricultural yields could increase by up tp 30 per cent. But this is about more than just productivity. How can gender-transformative approaches (GTA) drive meaningful change and why are GTA key to sustainable change?

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A woman at a trade show proudly displays organic food products in front of a booth showcasing diverse packaged goods.

BIOFACH as a game changer for organic producers

A Contribution by Claudia Jordan

In 2025, GIZ and the Import Promotion Desk (IPD) celebrate ten years of successful cooperation. With their joint stand at BIOFACH trade fair in Nuremberg, they were able to introduce over 300 organic companies of partner countries to the European market. And the journey continues – despite challenges on the global market.

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A diverse group of professionals gather for a conference, posing together in a spacious lobby surrounded by greenery.

Adapted financial services – a key to transformation

A Contribution by GIZ

In March, delegations from nine partner countries met in Berlin at the Partner Conference Scaling Access to Finance for Agripreneurs. Alongside AUDA-NEPAD, IFAD, BMZ, GIZ, and others, around 100 participants worked on practical solutions to support financial inclusion in agricultural transformation and hand over their conclusions to the AU's Kampala CAADP process.

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A portable radio with an extended antenna sits on freshly cut grass in a field. | © GIZ Ursula Meissner

Twelve countries, two podcasts, one goal 

A Contribution by GIZ

Two new podcast formats from the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) bring stories from on-the-ground project work to life: "Over to you!" from Malawi and "Voices of Change – Beneficiary Story Book" from Zambia. At the heart of these podcasts are the people behind the changes toward sustainable food security.

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Visioning for Resilient Food Systems

A Contribution by GIZ Malawi

Food systems vary widely between communities. While global agendas offer general guidance, effective change requires context-specific interventions at the local level. Placing the needs of local communities at the center of these efforts is essential. The visioning process can help achieve this, says Fyness Lydia Ching’oma from GIZ Malawi.

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