Menu Expand

Transforming Agri-Food Sectors to Mitigate Climate Change: The Role of Green Finance

Cite JOURNAL ARTICLE

Style

Batini, N. Transforming Agri-Food Sectors to Mitigate Climate Change: The Role of Green Finance. Vierteljahrshefte zur Wirtschaftsforschung, 88(3), 7-42. https://doi.org/10.3790/vjh.88.3.7
Batini, Nicoletta "Transforming Agri-Food Sectors to Mitigate Climate Change: The Role of Green Finance" Vierteljahrshefte zur Wirtschaftsforschung 88.3, , 7-42. https://doi.org/10.3790/vjh.88.3.7
Batini, Nicoletta: Transforming Agri-Food Sectors to Mitigate Climate Change: The Role of Green Finance, in: Vierteljahrshefte zur Wirtschaftsforschung, vol. 88, iss. 3, 7-42, [online] https://doi.org/10.3790/vjh.88.3.7

Format

Transforming Agri-Food Sectors to Mitigate Climate Change: The Role of Green Finance

Batini, Nicoletta

Vierteljahrshefte zur Wirtschaftsforschung, Vol. 88 (2019), Iss. 3 : pp. 7–42

8 Citations (CrossRef)

Additional Information

Article Details

Author Details

Nicoletta Batini, International Monetary Fund, nbatini@imf.org.

  • Nicoletta Batini is an Italian economist, notable as a scholar of innovative monetary and fiscal policy practices. She pioneered work on the dangers of fiscal austerity and on how to curb debt successfully during financial deleveraging. Over the past few years she started designing economic strategies for climate change mitigation focused on agrifood reforms and ecosystemconservation. Prior to the IMF, she was Advisor of the Bank of England’sMonetary Policy Committee, Professor of Economics at the University of Surrey, and Director of the International Economics and Policy Office of the Treasury in Italy. She has handled extensive consultancy roles internationally. She holds a Ph.D. in international finance (Scuola Superiore S. Anna) and a Ph.D. in monetary economics (University of Oxford).
  • Search in Google Scholar

Cited By

  1. ДО ПИТАННЯ МЕТОДОЛОГІЇ ДОСЛІДЖЕННЯ ПРАВА ЛЮДИНИ НА ПРОДОВОЛЬСТВО В СТАЛІЙ АГРОПРОДОВОЛЬЧІЙ СИСТЕМІ

    БОРОДІНА, Олена

    Economy of Ukraine, Vol. 67 (2024), Iss. 4 P.36

    https://doi.org/10.15407/economyukr.2024.04.036 [Citations: 0]
  2. Agri-food entrepreneurship. Harvesting, growing and reseeding the orchard through a bibliometric study

    Petrolo, Damiano | Fakhar Manesh, Mohammad | Pellegrini, Massimiliano Matteo | Flamini, Giulia

    British Food Journal, Vol. 124 (2022), Iss. 7 P.2396

    https://doi.org/10.1108/BFJ-08-2021-0954 [Citations: 7]
  3. Role of mycoprotein as a non-meat protein in food security and sustainability: a review

    Saeed, Farhan | Afzaal, Muhammad | Khalid, Armghan | Shah, Yasir Abbas | Ateeq, Huda | Islam, Fakhar | Akram, Noor | Ejaz, Afaf | Nayik, Gulzar Ahmad | Shah, Mohd Asif

    International Journal of Food Properties, Vol. 26 (2023), Iss. 1 P.683

    https://doi.org/10.1080/10942912.2023.2178456 [Citations: 11]
  4. Financing Our Future

    The Tao of Finance: A Social Invention That Can Change the World

    Brunnhuber, Stefan

    2021

    https://doi.org/10.1007/978-3-030-64826-8_5 [Citations: 0]
  5. Climate Changes Mitigation and Sustainable Bioenergy Harvest Through Animal Waste

    Current Trends and Prospects of Transforming Animal Waste into Food

    Ahsan, Samreen | Liaqat, Atif | Khaliq, Adnan | Iqbal, Rabia | Chughtai, Muhmmad Farhan Jahangir | Mehmood, Tariq | Saeed, Kanza | Fayyaz, Shoaib | Saeed, Aaqib | Sameed, Nimra

    2023

    https://doi.org/10.1007/978-3-031-26224-1_19 [Citations: 0]
  6. Social Morphology, Human Welfare, and Sustainability

    Revitalised Sustainable Agriculture through Ecosystem Management and Policy Interventions: Evidences from India

    Basim, N. Mohammed Abu | Rajarajan, S. | Ramkumar, P.

    2022

    https://doi.org/10.1007/978-3-030-96760-4_23 [Citations: 1]
  7. Greenhouse Gas Emissions in the Agricultural and Industrial Sectors—Change Trends, Economic Conditions, and Country Classification: Evidence from the European Union

    Murawska, Anna | Goryńska-Goldmann, Elżbieta

    Agriculture, Vol. 13 (2023), Iss. 7 P.1354

    https://doi.org/10.3390/agriculture13071354 [Citations: 3]
  8. European Green Transition Implications on Africa’s Livestock Sector Development and Resilience to Climate Change

    Ndue, Kennedy | Pál, Goda

    Sustainability, Vol. 14 (2022), Iss. 21 P.14401

    https://doi.org/10.3390/su142114401 [Citations: 2]

References

  1. AgriTech Funder (2019): https://agfundernews.com/.  Google Scholar
  2. Alexandratos, N., and J. Bruinsma (2012): World Agriculture Towards 2030/2050: The 2012 Revision, Food and Agriculture Organization of the United Nations.  Google Scholar
  3. Allied Market Research (2018): Organic and Clean Label Food Consumer in the United States.  Google Scholar
  4. Alok, J. (2016): “Synthetic meat: how the world’s costliest burger made it on to the plate”, The Guardian.  Google Scholar
  5. American College of Cardiology and American heart Association (2019): 2019 ACC/AHA Guideline on the Primary Prevention of Cardiovascular Disease: A Report of the American College of Cardiology/American Heart Association Task Force on Clinical Practice Guidelines, Circulation, https://www.ahajournals.org/doi/10.1161/CIR.0000000000000678.  Google Scholar
  6. American Heart Association (2019): “What kind of diet helps heart health?”, https://www.heart.org/en/news/2019/03/25/what-kind-of-diet-helps-heart-health.  Google Scholar
  7. Amine, E. et al. (2002): “Diet, nutrition and the prevention of chronic diseases: report of a Joint WHO/FAO Expert Consultation”. Technical report series (World Health Organization), 916.  Google Scholar
  8. Bajzelj, B., K. Richards, J. M. Allwood, P. Smith, J. S. Dennis, E. Curmi, and C. Gilligan (2014): “Importance of food-demand management for climate mitigation”, Nature Climate Change, 4, pp. 924 – 929.  Google Scholar
  9. Baroni, L., L. Cenci, M. Tettamanti, and M. Berati (2007): “Evaluating the environmental impact of various dietary patterns combined with different food production systems,” European Journal of Clinical Nutrition, 61, 279 – 286.  Google Scholar
  10. Batini, N. (2019): “Macroeconomic Gains from Reforming the Agri-Food Sector: The Case of France”, IMF Working Paper No. 19/41 (Washington DC).  Google Scholar
  11. Batini, N., G. Melina, and S. Villa (2018): Fiscal buffers, private debt, and recession: The good, the bad and the ugly”, Journal of Macroeconomics.  Google Scholar
  12. Bekker, G. A., H. Tobi, and A. R. H. Fischer (2017): “Meet meat: An explorative study on meat and cultured meat as seen by Chinese, Ethiopians and Dutch”. Appetite. 114, pp. 82 – 92.  Google Scholar
  13. Bjørkhaug, H., G. Lawrence, and A. Magnan (eds.) (2018): The Financialization of Agri-food systems. Contested Transformations. Routledge.  Google Scholar
  14. Bloomberg Intelligence (2017): “Veggie Burgers Go Mainstream with Bloody Impossible Burger”. https://www.bloomberg.com/news/articles/2017-06-05/bloody-meat-free-burger-brings-former-hippy-staple-to-mainstream.  Google Scholar
  15. Bloomberg Intelligence (2019): “Do-good investments are smashing your emerging-market returns.” https://www.bloomberg.com/professional/blog/good-investments-smashing-emerging-market-returns/?mpam-page=20568.  Google Scholar
  16. Bouvard, V., D. Loomis, K. Z. Guyton, Y. Grosse, F. El Ghissassi, L. Benbrahim-Tallaa et al. (2015): “Carcinogenicity of consumption of red and processed meat”, The Lancet Oncology, 16(16), pp. 1599 – 1600.  Google Scholar
  17. Breen, S., and C. Campbell (2017): “Legal Considerations for A Skyrocketing Green Bond Market,” 31 Natural Resources and Environment, 16.  Google Scholar
  18. Bryant, C., K. Szejda, N. Parkh, V. Desphande, and B. Tse (2019): “A Survey of Consumer Perceptions of Plant-Based and Clean Meat in the USA, India, and China”, Frontiers of Sustainable Food Systems.  Google Scholar
  19. Chalmers University of Technology (2011): “Growing meat in the lab: Scientists initiate action plan to advance cultured meat”, Science Daily.  Google Scholar
  20. Churchill, W. (1931): “Fifty Years Hence”, The Strand Magazine (December 1931).  Google Scholar
  21. Clapp, J. (2016): Food, 2nd Edition, Policy Press, Cambridge, UK.  Google Scholar
  22. Cœuré, B. (2018): “Monetary policy and climate change,” Speech at a conference on “Scaling up Green Finance: The Role of Central Banks”, organized by the Network for Greening the Financial System, the Deutsche Bundesbank and the Council on Economic Policies, Berlin, 8 November 2018.  Google Scholar
  23. Cole, S. A., and W. Xiong (2017): “Agricultural Insurance and Economic Development,” Annual Review of Economics, 9, pp. 235 – 262.  Google Scholar
  24. Crowder, D. W., and J. P. Reganold (2015): “Financial competitiveness of organic agriculture on a global scale”, Proceedings of the National Academies of Science of the United States of America, 112(24), pp. 7611 – 7616.  Google Scholar
  25. CSSP-South Pole Carbon Asset Management (2016): Climate-friendly investment strategies and performance. Study commissioned by the Swiss Federal Office for the Environment (FOEN).  Google Scholar
  26. Datar, I. (2010): “Possibilities for an in vitro meat production system”, Innovative Food Science and Emerging Technologies, 11 (1), pp. 13 – 22.  Google Scholar
  27. Dealogic Insights (2018): “Sustainable finance bonds had a record year”.  Google Scholar
  28. Deichmann, U., A. Goyal, and D. Mishra (2016): “Will Digital Technologies Transform Agriculture in Developing Countries?” World Bank Policy Research Paper 7669.  Google Scholar
  29. Delbridge, T. A., J. A. Coulter, R. P. King, C. C. Sheaffer, and D. L. Wyse (2011): “Economic Performance of Long-Term Organic and Conventional Cropping Systems in Minnesota. Agronomy Journal, 103:137.  Google Scholar
  30. De Marco, A., M. Velardi, C. Camporeale, A. Screpanti, and V. Marcello (2014): “The Adherence of the Diet to Mediterranean Principle and Its Impacts on Human and Environmental Health”. International Journal of Environmental Protection Policy, 2, pp. 64 – 75.  Google Scholar
  31. Duchin, F. (2005): “Sustainable Consumption of Food: A Framework for Analyzing Scenarios about Changes in Diets.” Journal of Ind Ecology 9, 99 – 114.  Google Scholar
  32. Dwivedi, S. L., E. T. Lammerts van Bueren, S. Ceccarelli, S. Grando, H. D. Upadhyaya, and R. Ortiz (2017): “Diversifying Food Systems in the Pursuit of Sustainable Food Production and Healthy Diets”, Trends in Plant-Based Science, Feature Review, 22(10), pp. 842 – 856.  Google Scholar
  33. Eaglesham (2011): “Simultaneously Addressing Food Security and Global Sustainability Challenges,” in NABC Report 23: Food Security: The Intersection of Sustainability, Safety and Defense.  Google Scholar
  34. Edelman, P. D. (2005): “Commentary: In Vitro-Cultured Meat Production system,” Tissue Engineering, 11 (5 – 6): 659 – 662.  Google Scholar
  35. Etemadi, A. et al. (2017): ‘Mortality from different causes associated with meat, heme iron, nitrates, and nitrites in the NIH-AARP Diet and Health Study: population-based cohort study.’ British Medical Journal, 357: j1957.  Google Scholar
  36. Euler Hermes Global (2019): “Agri-food Global Sector Report”. https://www.eulerhermes.com/en_global/economic-research/sector-reports/Agrifood.html.  Google Scholar
  37. European Bank for Reconstruction and Development and Food and Agriculture Organization (2017): “Adoption of climate technologies in the agri-food sector.”  Google Scholar
  38. European Union, European Parliament Research Service (EPRS), 2017. EU Action on Cancer.  Google Scholar
  39. Fairbairn, M. (2014): ‘“Like gold with yield”: evolving intersections between farmland and finance’, Journal of Peasant Studies, 41(5), pp. 777 – 795.  Google Scholar
  40. FAIRR (2018): “Plant-based profits: investment risks and opportunities in sustainable food systems.”  Google Scholar
  41. Food and Agriculture Organization (2018): “Transforming food and agriculture to achieve the SDGs: 20 interconnected actions to guide decision-makers.”  Google Scholar
  42. Field, S. (2016): “The financialization of food and the 2008 – 2011 food price spikes” Environment and Planning A, published online DOI: 10.11777/0308518X16658476.  Google Scholar
  43. Foley, J. (2016): How to feed the world’s people without destroying the planet, MPR News Podcast, https://www.mprnews.org/story/2016/02/24/mpr_news_presents.  Google Scholar
  44. Food and Agriculture Organization (2019): “The state of the world’s biodiversity for food and agriculture,” FAO Commission on Genetic Resources for Food and Agriculture Assessments.  Google Scholar
  45. Forum for Sustainable and Responsible Investing (2018): Report on US Sustainable, Responsible and Impact Investing Trends, 2018.  Google Scholar
  46. Fountain, H. (2013): “A Lab-Grown Burger Gets a Taste Test”. The New York Times.  Google Scholar
  47. Gallup (2017): Food Consumption Survey.  Google Scholar
  48. Goodland, R., and J. Ahnang (2009): “Livestock and Climate Change: What if the Key Actors in Climate Change are Cows, Pigs and Chickens?”, World Watch, November 2009.  Google Scholar
  49. Gorte, J. (2019): “The Financial Performance of Sustainability: ESG and Risk”, Pax World Funds, https://paxworld.com/the-financial-performance-of-sustainability-esg-and-risk/.  Google Scholar
  50. Gregory, R. P. (2017): “Does Socially Responsible Corporate Reporting Lead to Less Stock Speculation?” Available at SSRN: https://ssrn.com/abstract=3092245 or http://dx.doi.org/10.2139/ssrn.3092245.  Google Scholar
  51. Green America’s Green Business Network (2019): Industrial Agriculture, Food and Climate News, 2018.  Google Scholar
  52. Gustavsson, J. et al. (2011): “Global Food Losses and Food Waste: Extent, Causes, and Prevention,” Food and Agriculture Organization of the United Nations.  Google Scholar
  53. In, S. Y., K. Y. Park, and A. H. B. Monk (2019): “Is ‘Being Green’ Rewarded in the Market? An Empirical Investigation of Decarbonization and Stock Returns,” Stanford Global Project Center Working Paper. Available at SSRN: https://ssrn.com/abstract=3020304:  Google Scholar
  54. Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services of the United Nation (IPBES) (2019): 2019 Global Assessment Report on Biodiversity and Ecosystem Services.  Google Scholar
  55. International Capital Market Association (ICMA) (2018): Social Bonds Principles: Voluntary Process Guidelines for Issuing Social Bonds.  Google Scholar
  56. International Panel of Experts on Sustainable Food Systems (2017): “Too big to feed: Exploring the impacts of mega-mergers, consolidation and concentration of power in the agri-food sector”. IPES Report, October 2018.  Google Scholar
  57. Joyce, A., S. Dixon, J. Comfort, and J. Hallett (2012): Reducing the environmental impact of dietary choice: Perspectives from a behavioral and social change approach. Journal of Environmental Public Health.  Google Scholar
  58. Khoury, C. K. et al. (2016): “Increasing homogeneity in global food supplies and the implications for food security”, Proceedings of the National Academy of Sciences USA, 111, pp. 4001 – 4006.  Google Scholar
  59. Konefal, J., M. Mascarenhas, and M. Hatanaka (2005): “Governance in the global agro-food system: Backlighting the role of transnational supermarket chains”, Agriculture and Human Values, 22, pp. 291 – 302.  Google Scholar
  60. KPMG Enterprise (2019): VenturePulse Global Analysis of Venture Funding.  Google Scholar
  61. Lernoud, J., and H. Willer (2018): “Organic Agriculture Worldwide 2016: Current Statistics”, Research Institute of Organic Agriculture FiBL.  Google Scholar
  62. Lux Research (2019): Emerging Ecosystems in Agrifood & Health.  Google Scholar
  63. McKinsey Global Institute (2015): “Digital America: A Tale of Haves and Have-Mores.”  Google Scholar
  64. National Sustainable Agriculture Coalition (2017): An Agenda for the 2018 Farm Bill.  Google Scholar
  65. Network for Greening the Financial System (2019): “First comprehensive report. A call for action: Climate change as a source of financial risk.”  Google Scholar
  66. O’Neill, J. et al. (2016): “Tackling Drug-Resistant Infections Globally: Final Report And Recommendations: The Review on Anti-Microbial Resistance”.  Google Scholar
  67. Pliner, P., and K. Hobden (1992): “Development of a scale to measure the trait of food neophobia in humans.” Appetite, 19, pp.: 105 – 120.  Google Scholar
  68. Post, M. J. (2012): “Cultured meat from stem cells: challenges and prospects.” Meat Science, 92, pp. 297 – 301.  Google Scholar
  69. Post, M. J. (2013): “Medical technology to Produce Food,” Journal of the Science of Food and Agriculture, 94 (6), pp. 1039 – 1041.  Google Scholar
  70. Reardon, T., C. B. Barrett, J. A. Berdegué, and J. F. M. Swinnen (2009): Agri-food industry transformation and small farmers in developing countries. World Development, 37(11), pp. 1717 – 1727.  Google Scholar
  71. Research and Markets (2017): Food and beverage Industry Report, 2017.  Google Scholar
  72. Ritchie, H., and M. Roser (2017): “Meat and Seafod Production and Consumption”. Ourworldindata.  Google Scholar
  73. Rockström, R., J. O. Gaffeny et al. (2017): “A Roadmap for Rapid Decarbonization”, Science, 355(6331), pp. 1269 – 1271.  Google Scholar
  74. Rodale Institute (2015): “Farming System Trial”.  Google Scholar
  75. Rossignoli, C. M., and R. Moruzzo (2014): “Retail Power and Private Standards”, Agri-Food Chain, Agroecology and Sustainable Food Systems, 38(9), pp. 1108 – 1124.  Google Scholar
  76. Rotz, S., E. Gravely et al. (2019): “Automated pastures and the digital divide: How agricultural technologies are shaping labor and rural communities,” Journal of Rural Studies, (in press), online at https://www.sciencedirect.com/science/article/pii/S0743016718307769.  Google Scholar
  77. Scarborough, P. et al. (2014): “Dietary greenhouse gas emissions of meat eaters, fish-eaters, vegetarians and vegans in the UK”, Climate Change, 125, pp. 179 – 192.  Google Scholar
  78. Schmidt, T. (2016): The Political Economy of Food and Finance, Routledge.  Google Scholar
  79. Schonwald, J. (2009): “Future Fillet”. The University of Chicago Magazine.  Google Scholar
  80. Sippel, S. R. (2015): “Food security for commercial business? Gulf State investments in Australian agriculture”, Journal of Peasant Studies, 42(5), pp. 981 – 1001.  Google Scholar
  81. Song, M., T. T. Fung, F. B. Hu et al. (2016): “Association of Animal and Plant Protein Intake with All-Cause an d Cause-Specific Mortality,” Journal of the American Medical Association – Internal Medicine, 176(10), pp. 1453 – 1463.  Google Scholar
  82. Springmann, M. et al. (2016): “Analysis of valuation of the health and climate change co-benefits of dietary change” Proceedings of the National Academy of Sciences USA, 113, pp. 4146 – 4151.  Google Scholar
  83. Stehfest, E. (2014): “Diet: Food choices for health and planet”. Nature, 515, pp. 501 – 502.  Google Scholar
  84. Technavio (2019): Global Industries Reports.  Google Scholar
  85. Terazono, E. (2018): “The billion-dollar agritech start-ups disrupting farming”, Financial Times.  Google Scholar
  86. The Good Food Institute (2018): ‘“Clean meat” is catching on: a reflection on nomenclature.’  Google Scholar
  87. Tilman, D., and M. Clark (2014): “Global diets link environmental sustainability and human health,” Nature, 515, pp. 518 – 522.  Google Scholar
  88. Trienekens J., and P. Zuurbier (2008): “Quality and safety standards in the food industry, developments and challenges”, International Journal of Production Economics 113, pp. 107 – 122.  Google Scholar
  89. United Nations (2017): World Population Prospects: The 2017 Revision.  Google Scholar
  90. United Nations Environment Programme (UNEP) (2019): Sixth Global Environmental Outlook. https://www.unenvironment.org/news-and-stories/press-release/human-health-dire-straits-if-urgent-actions-are-not-made-protect.  Google Scholar
  91. Wang, E. K. (2017): “Financing Green: Reforming Green Bond Regulation in The United States,” Brooklyn Journal of Corporate, Financial and Commercial Law, 12 (2).  Google Scholar
  92. Willett, W., J. Rockström, B. Loken, M. Springmann et al. (2019): “Food in the Anthropocene: the EAT–Lancet Commission on healthy diets from sustainable food systems,” EAT-Lancet EAT–Lancet Commission on healthy diets from sustainable food systems.  Google Scholar
  93. Wolf, J., G. R. Asrar, and T. O. West (2017): “Revised methane emissions factors and spatially distributed annual carbon fluxes for global livestock,” Carbon Balance Management, 12(1):16.  Google Scholar
  94. World Bank (2019): This is What It’s All About: Protecting Biodiversity in Africa. https://www.worldbank.org/en/topic/biodiversity.  Google Scholar
  95. World Cancer Research Fund-American Institute for Cancer Research (2018): “Diet, Nutrition, Physical Activity and Cancer: A Global Perspective – A Summary of the Third Expert Report.”  Google Scholar
  96. World Economic Forum-McKinsey & Company (2018): Innovation with a Purpose: The role of technology innovation in accelerating food systems transformation – System Initiative on Shaping the Future of Food Security and Agriculture.  Google Scholar
  97. World Health Organization (2004): Global Strategy on Diet, Physical Activity and Health.  Google Scholar
  98. World Health Organization (2014): “The Double Burden of Malnutrition”. https://www.who.int/nutrition/double-burden-malnutrition/en/.  Google Scholar
  99. World Health Organization (2018): “Obesity and Overweight”. https://www.who.int/news-room/fact-sheets/detail/obesity-and-overweight.  Google Scholar
  100. World Health Organization – International Agency for Research on Cancer (2015): Consumption of red meat and processed meat. IARC Working Group. Volume 114, Lyon; 6 – 13 September 2015. IARC Monographs for the Evaluation of Carcinogenic Risks in Humans  Google Scholar
  101. ZMR (2017): ZMR News Magazine.  Google Scholar

Abstract

Summary: Globally, food systems have become heavily industrialized and are currently threatening both environmental sustainability and human health. Feeding a growing world while remaining within safe social-ecological planetary boundaries, as dictated by the UN Social Development Goals and the Paris Climate Agreement, is feasible but requires a paradigmatic shift in agricultural value chains and their financing: a “Great Food Transformation.” Tracing today’s agri-food main global developmental and financial trends, this paper proposes a set of financially-oriented public policies to accelerate this transition with a focus on advanced and large emerging market economies. Suggested measures include public lending, insurance and guarantee schemes to aid the transition; financial training schemes; changes to prudential regulation to account for financial risks of non-sustainable farming; alongside a bolder approach to ESG investment of public funds and steps to expand green and sustainable bond markets.