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

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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

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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)

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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).
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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.