Controlled Environment Agriculture (CEA) is the production of plants, fish, insects, or animals inside structures such as greenhouses, vertical farms, and growth chambers, in which environmental parameters such as humidity, light, temperature and CO2 can be controlled to create optimal growing conditions.
A range of approaches and financial instruments have been used to stimulate and support innovation in agriculture and resolve interlocking constraints for uptake at scale. These include innovation platforms, results-based payments, value chain approaches, grants and prizes, incubators, participatory work with farmer networks, and many more.
Brazil has transformed from being a net food importer, to one of the largest agricultural exporters in the world. The country is now one of the top global funders of agricultural innovation, with a special emphasis on funding R&D for sustainable agriculture. While food insecurity and environmental challenges exist in many parts of Brazil, social programs and funding in innovation have helped those in need.
The CGIAR is the leading global agriculture research institution working towards creating sustainable agricultural practices a reality through research and innovation. The CGIAR 2030
To meet the growing demand for food in the Global South in a sustainable manner, current funding in agricultural innovation will need to be increased exponentially. Some estimates suggest up to USD 320 billion annually is required to help meet the UN SDG Goals for food and agriculture by 2030. Current levels of funding for agriculture and agricultural innovation fall far short of this and hence efforts to induce more funding for these goals, including through the use of new financing instruments1, is critical going forward.
The only specialized multilateral development institution focused exclusively on rural development, IFAD has successfully used agriculture as a means of poverty reduction – contributing ~USD 22 billion in funding to date1. About 90% of IFAD's portfolio is focused on Low to Middle Income (LMI) countries. IFAD stands out with its nutrition and gender-sensitive lenses coupled with investments in climate-resilient agriculture – mainstreaming nutrition, gender, and climate change work in agriculture.
Controlled Environment Agriculture (CEA) is the production of plants, fish, insects or animals inside structures, such as greenhouses and buildings, in controlled conditions. In a rapidly urbanizing world, CEA can contribute to sustainable development, e.g. through reduced use of land, water and inputs. There is a need for innovation in policy, technology and business practices to scale up CEA in the Global South sustainably and equitably
The study was designed to answer the following three key questions:
(1) What types of investment instruments have been tested to support innovation in agri-food systems in the Global South, and how can these be categorized into a working typology?
(2) What is the evidence on how well different instruments have supported SAI's multiple objectives (e.g. social equality and environmental) at scale and what contextual and design factors affect their success or failure in achieving these objectives (e.g. type of value chain, who participates)?
A huge increase in investment in innovation for agricultural systems is critical to meet the Sustainable Development Goals and Paris Climate Agreement. Most of this increase needs to come from reorienting existing funding for innovation. However, understanding whether an investment will fully promote environmentally sustainable and equitable agri-food systems can be difficult.