The Kenya agricultural carbon project is breaking new ground in designing and implementing climate finance projects in the agricultural sector. The project is regarded as an innovative example for climate-smart agriculture within and outside the World Bank. For the first time, while increasing productivity and enhancing resilience to climate change, smallholder farmers in Africa will receive payments for greenhouse gas mitigation based on sustainable agricultural land management. Quantification of carbon sequestration is monitored based on a newly developed carbon accounting methodology.
Poverty reduction is a long-standing development objective of many developing countries and their aid donors, including the World Bank. To achieve this goal, these countries and organizations have sought to improve smallholder agricultural productivity in Sub-Saharan Africa (SSA) as part of a broader rural development agenda aimed at providing a minimal basket of goods and services in rural areas to satisfy basic human needs. These goods and services include not only food, health care, and education, but also infrastructure.
Growing local and informal markets in Asia and Africa provide both challenges and opportunities for small holders. In developing countries, market failures often lead to suboptimal performance of the value chains and limited and inequitable participation of the poor. In recent years, innovation platforms have been promoted as mechanisms to stimulate and support multistakeholder collaboration in the context of research for development. They are recognized as having the potential to link value chain actors, and enhance communication and collaboration to overcome market failures.