Project Rationale
Perennial plantation systems, unlike annual crops, are highly
vulnerable to climate
variations and have limited options to adapt due to the long lifespan and significant
capital investment.
There is a significant need for a demand-driven climate information
system that effectively
supports decision-making in developing tailored, market-driven co-financing adaptation
plans.
Significant gaps remain in adapting perennial plantations despite
climate change efforts.
Government initiatives often prioritize staple crops like rice due to political influences,
resulting in subsidies that overlook the crucial role these crops play in farmers' financial
stability and the national economy.
Industry-wide sustainability systems and programs, including
traceability initiatives, are
essential for enhancing environmental outcomes and supporting adaptation efforts. However,
they often remain fragmented across industries and regions, which need to be strengthened
and expanded.
Sustainable alternative risk transfer solutions are vital for climate
risks, but their
adoption is low. To increase uptake, we need tailored solutions and cost-effective methods.
Opportunities exist to combine insurance premium support with sustainability programs in
industries like specialty coffee and sustainable brands.
An example of tactical and strategic decisions related to the perennial
plantation systems (e.g., coffee), highlighting the need for climate information requirements at
different scales. Importantly, unlike annual crops, smallholder producers have fewer options for
adaptation due to the longer economic lifespan of their crops, often remaining productive for
20–30 years, the difficulty in quickly switching to alternative cropping systems, and the
substantial capital investment required – making them more vulnerable than other production
systems.
Methodology
The project will be implemented through five integrated work
packages:
- Climate modelling and products and customize risk assessment tools
- Measuring and improving capacity planning for adaptation investments
- Integrating traceability with mitigation and adaptation planning
- Innovative risk transfer and sustainable upscaling approaches
- Awareness, knowledge sharing and capacity building
The proposed framework, which is based on the five integrated work packages
Operational Framework
Operational framework of the work package
Research and Development: The R&D component will focus on addressing research
and development
gaps in both industry and regional contexts, with specific aims and objectives designed to
deliver practical solutions
Tools and products: Each component is expected to generate tailored outputs and
outcomes, with
a key focus on developing products and tools (e.g., targeted forecasts, risk assessment tools,
crop models, BMP guidelines) that support effective decision-making. For example, a significant
output from the Climate R&D component would be demand-driven forecasts and other climate
services
Trialing and piloting innovation: Each component is expected to establish
regional industry
reference groups to ensure that: (i) research and development challenges are addressed, and that
products and tools are relevant to local, regional, and industry needs; (ii) adaptation
solutions and sustainability programs are prioritized, with a commitment from the industry to
co-invest and pilot innovations; and (iii) testing and piloting market-driven solutions
Upscaling innovation: The insights gained from piloting the demand-driven
climate products and
adaptation strategies in each work package will inform the development of customized and
scalable programs.
