Scaling Climate Ambition: How SCALA Engages the Private Sector in Agriculture

The SCALA programme, Scaling up Climate Ambition on Land Use and Agriculture through Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs), is a pioneering initiative jointly led by the Food and Agriculture Organization (FAO) of the United Nations and the United Nations Development Programme (UNDP). It is generously supported by the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV) through the International Climate Initiative (IKI). Since its inception in 2020, SCALA has worked intensively in 12 countries across Africa, Asia, and Latin America, and has extended technical assistance to 11 others. Its primary objective is to turn national climate strategies into actionable investments in land-use and agricultural sectors, specifically by unlocking the potential of the private sector to become a dynamic partner in climate adaptation and mitigation efforts.

Bridging Gaps Between Public Plans and Private Interests

One of the key challenges SCALA has encountered is the limited relevance that businesses assign to NDCs and NAPs. These documents are often viewed as strategic blueprints rather than concrete frameworks for private sector engagement. Compounding this issue is the divergence in priorities: governments tend to focus on staple crops vital for national food security, while businesses are drawn to high-value commodities like cocoa, coffee, and dairy. These high-margin crops offer better export potential and returns on investment, making them more attractive to private investors. In Senegal, for example, the government promotes organic farming as part of its climate plan, but the private sector struggles to adopt such practices due to high costs and entrenched subsidies favoring conventional agriculture. In response, SCALA has supported value chain scoping and integrated system analysis in countries like Uganda, where cassava, cocoa, and cattle are examined collectively to align market potential with climate goals. Similarly, in Côte d’Ivoire, the programme is developing investable proposals within the cashew value chain that simultaneously aim to reduce deforestation and enhance financial returns. In Egypt, dairy sector investments are being rigorously assessed through cost-benefit studies to gauge their commercial viability. Collaborations with national and international business networks, such as FEDEPAPA in Colombia and the World Business Council for Sustainable Development, have helped raise awareness and foster dialogue between public agencies and corporate actors.

Demystifying Climate Adaptation for the Private Sector

A persistent obstacle has been the private sector’s limited understanding of what constitutes genuine climate adaptation. Many businesses wrongly categorize general sustainability efforts or short-term fixes, such as installing cow shelters or using water-saving methods, as comprehensive adaptation strategies. SCALA addresses this by conducting targeted surveys, workshops, and knowledge-sharing campaigns that clarify the differences between routine business practices and transformative climate interventions. In Costa Rica, the programme partners with the Ministry of Agriculture to educate farmers and agribusinesses about emission-reduction technologies and greenhouse gas quantification methods. Meanwhile, in countries like Uganda and Ethiopia, SCALA translates research findings into accessible formats tailored for small businesses and local stakeholders. Project designs now increasingly involve cooperatives and aggregators who play a crucial role in building grassroots capacity. These intermediaries are often more effective in transferring technical knowledge to farmers and in helping deploy and maintain climate-smart technologies such as biogas plants in Thailand or milk cooling centers in Egypt.

Unlocking Climate Finance for Farmers and SMEs

Another central hurdle is finance. Micro, small, and medium-sized enterprises (MSMEs) and smallholder farmers often lack access to affordable credit due to inadequate collateral, limited financial history, and high borrowing costs. Development banks tend to favor larger-scale, low-risk investments, leaving small-scale agricultural enterprises underfunded. To tackle this, SCALA promotes tailored financial instruments and certification models. In Costa Rica, it is piloting a deforestation-free beef certification across 15 farms and conducting market studies to assess consumer demand for such products. In Côte d’Ivoire, efforts are underway to popularize Vulnerability Reduction Credits, which quantify avoided climate damage and can be traded as value-bearing instruments. Senegal’s partnership with La Banque Agricole provides concessional loans to farmers, supported by technical assistance. In Egypt and Uganda, the empowerment of cooperatives and aggregators is improving local access to financial services and increasing the adoption of climate-resilient technologies. These approaches are being further supported by feasibility studies and market analyses in countries such as Belize, The Gambia, and Uzbekistan, under SCALA’s Private Sector Engagement Facility.

A Blueprint for Transformative Collaboration

Through its holistic engagement strategy, SCALA has demonstrated that sustainable transformation in the agriculture and land-use sectors is only possible when the private sector is fully integrated into the climate action ecosystem. Early involvement of businesses in climate planning, along with transparent and de-risked investment environments, can create a fertile ground for innovation and collaboration. Capacity building, regulatory support, and financial incentives are vital tools in enabling this shift. By identifying profitable, climate-aligned business models and fostering public–private dialogue, SCALA has provided countries with a replicable blueprint for attracting private investment while advancing their national climate goals. As the programme evolves, it continues to offer critical lessons and tools for governments, development agencies, and businesses striving to create resilient, low-emission agrifood systems. With its firm grounding in evidence-based action and stakeholder inclusivity, SCALA is paving the way for a new era of climate-resilient agriculture, where market forces and environmental stewardship are no longer at odds, but mutually reinforcing.