Agriculture is crucial for the livelihood of millions of people worldwide and is one of the main drivers of deforestation, biodiversity loss and resource degradation. The contribution of agriculture to these environmental problems has been exacerbated by subsidies, which constitute the dominant public policy to support farmers. At the same time, other economic instruments introducing more sustainable land-use practices and incentivizing better environmental and social outcomes are already being applied worldwide.

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)?

What are the patterns of funding in agricultural innovation for the Global South1 ? Who are the key funders in this innovation and who are the key recipients? How doesthis funding split between various topics and value chains? What proportion of these funds support Sustainable Agricultural Intensification (SAI)? And how is SAI innovation funding split across different parts of the agriculture sector funding and innovation canvas?

Cities are highly visible centers of mass consumption of food and vast excretion of waste; they are less often associated with the production of food. Yet closer observation of cities in the Global South reveals that they are also locations of food production. This report describes the major challenges affecting crop cultivation and animal raising as well as food consumption in and around cities, where many households are poorly fed, negatively affected by unsustainable urbanization processes, and threatened with a warming and disease-prone world.

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 huge increase in investment for innovation in sustainable agri-food systems (SAS) will be critical for meeting the objectives of the UN Sustainable Development Goals and the Paris Climate Agreement.