How three islands are working with the private sector for mutual benefit
Small Island Developing States (SIDS) are highly dependent on importing and exporting commodities. Imports into SIDS are often used to complement narrow local resource bases with fuel, food, and bottled water; while exports tend to be concentrated in a limited number of agrifood commodities such as cane sugar, bananas, tropical beverages, and forest- and fisheries-based products.
At the same time, SIDS are particularly vulnerable to rising sea levels, flooding, droughts, and other effects of climate change that threaten the very agrifood value chains upon which these countries so heavily rely. SIDS thus needs to channel their Nationally Determined Contributions and other national climate plans toward tailored development that enhances the resilience of domestic agrifood systems, protects livelihoods, and ensures food security.
For about one-third of SIDS, the public debt to GDP remains very high, while in parallel, some SIDS require up to 20 percent of their GDP to effectively build resilience to climate change. Unfortunately, the necessary investment is often severely lacking.
Leveraging SCALA’s Private Sector Engagement Facility
SIDS are now looking to engage the private sector as a key partner for investment opportunities while working towards achieving their Sustainable Development Goals (SDGs)
The prospect of working together is mutually beneficial. For the public sector, collaborating with the private sector offers the potential to unlock solutions to address multiple climate-related entry points within the agrifood system, thereby amplifying their impact.
For the private sector, emerging agrifood investment opportunities present a chance not only to turn a profit but also to contribute significantly to increased food security, climate resilience, and sustainable livelihoods in developing countries. It also provides a two-fold opportunity for the private sector to find an entry point to address climate risks to their supply chains in countries where SDG 9 Industry, Innovation and Infrastructure, SDG 11 Sustainable Cities and Economies, and SDG 12 Responsible Consumption and Production are a priority.
To draw the private and public sectors closer together, FAO and UNDP have developed a Private Sector Engagement Facility (PSEF) that now operates in nine countries, including several SIDS.
The PSEF – part of the SCALA programme – offers a unique opportunity for the governments of the requesting countries to engage private sector actors in climate action in their agriculture, forestry, and land-use value chains and to access tools, training, innovations, and funding streams that may not otherwise be available to them.
The Solomon Islands, Belize, and São Tomé and Príncipe are among the SIDS that joined the PSEF in 2023 and 2024. Here's a closer look at how these three SIDS are using the support to transform their agriculture and land-use sectors to better engage the private sector while moving forward towards achieving their climate goals.
Exchanging firewood for biogas in the Solomon Islands
The Solomon Islands is an archipelago of 994 tropical islands and atolls, with almost 80 percent of its population living in rural, low-lying coastal areas. Low-lying coastal communities are predominantly dependent on agriculture, forestry, and fisheries for food security and livelihoods, relying mainly on their traditional food production systems, traditional knowledge, and strong communal systems.
The Pacific Island country aims to enhance its energy and waste management infrastructure to reduce its vulnerability to climate change, by increasing the affordability and accessibility of biogas in both urban and rural areas. Extreme weather events impact energy infrastructures, which has a cascade effect on water resources, transportation and other sectors that intersect and depend on energy. To create a space where private sector investment in the electricity and renewable energy sector is attractive and possible, the government of the Solomon Islands requested the SCALA programme’s support in conducting a feasibility study.
The results of the study revealed the potential for setting up a biogas plant using pig waste at the farm level and using residues from various sectors of the economy to generate electricity and gas for heating, cooking, and lighting. For example, mixing water with pig manure creates biogas that can power energy needs for cooking instead of using firewood. Using biological matter, such as pig or cow manure to produce gas causes less harm to the environment as the biological matter is processed instead of escaping into the atmosphere.
The study generated true-to-scale tri-dimensional (3D) digital reconstruction and engineering drawings of the site and the design of additional elements for the biogas system. With such digital reconstruction, piggery owners will be able to assemble a turnkey system or purchase pre-assembled components for a correctly sized biogas system. The replication potential in the country is vast: in the Guadalcanal province alone, there are at least 45 farms with comparable characteristics and an opportunity for capacity building and engaging local communities for job creation.
Exchanging emissions for good silvo-pastoral practices in Belize
Belize’s mainland has over 400 small islands off its coastline, with over 50 percent of the population living in rural areas. The rural communities work predominantly in the agriculture and land-use sectors, including livestock and fisheries. These sectors are key to providing the base for enhanced economic growth of the country – especially in rural areas – while contributing to increased food security and poverty alleviation.
Belize committed to advancing climate action by financing over 2,000 farmers to establish silvo-pastoral systems (trees, livestock, pastures), which includes the rotational grazing of animals, integration of live fences and trees, shrubs, and improved pastures in livestock farming systems. These systems are being designed to create more resilient ecosystems with enhanced soil health and erosion control, improved water conservation and retention, and provide diversified income sources from timber and non-timber products. The Plan Belize (2022-2026) includes a goal to reduce livestock emissions through the integration of nature-based solutions and good silvo-pastoral practices. The Private Sector Engagement Facility is supporting Belize in reaching this goal by implementing cost-effective nature-based solutions for reducing the environmental impact of livestock production and leveraging new market opportunities.
First, a value chain assessment and an exploratory national market analysis for sustainable beef cattle value chain products is being conducted. The assessment looks at adaptive approaches such as precision grazing, improved pasture quality, soil carbon storage, efficient water use, and better livestock feeding practices, providing a roadmap to enhance the climate resilience, competitiveness, and sustainability of the beef cattle value chain.
Exchanging pesticides for organic alternatives in São Tomé and Príncipe
Despite being the second smallest country in Africa, São Tomé and Príncipe is a large exporter of cocoa, coffee, copra, palm oil, coconut oil, and pepper. Unfortunately, the way these crops are cultivated involves substantial use of chemical fertilizers and pesticides, residues of which end up in land-based waste that leaches into groundwater layers and the sea. Storm surges, flooding, and rising sea levels exacerbate this.
One of São Tomé and Príncipe’s climate goals is to reduce the use of pesticides and chemical fertilizers by 25 percent and increase the use of organic products by 25 percent by 2030. This involves developing an ecosystem of organic bio-input manufacturers to produce organic vegetables and other commodities, thereby enhancing market access opportunities for these products.
With the support of the PSEF, the government was able to gather data and gain insights into potential market opportunities in a new report, Enhancing the Bio inputs and Organic Vegetables Value Chains in São Tomé and Príncipe. The report assessed the commercial viability of bio-inputs for organic vegetable production and export.
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The private sector can play a central role in promoting the adoption of climate-smart and sustainable production practices and greener behavior across their value chains. By developing climate solutions and technologies, the private sector can drive innovation and support the establishment of standards. In turn, this helps both countries and the private sector expand markets in a climate resilience way and help farmers scale up sustainable practices.
To make the necessary changes, the private sector needs reliable baseline data on agriculture practices and land use to support their performance metrics. The SCALA programme has been addressing the need for the private sector to have robust evidence and data that can support strategic decision-making with 9 countries under the Private Sector Engagement Facility, as well as the other 12 SCALA countries. Evidence generated from studies, cost-benefit, value chain, and market analysis are an essential step in engaging the private sector.
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Funded by the International Climate Initiative (IKI) of the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV), the SCALA programme is jointly implemented by the UN’s Food and Agriculture Organization (FAO) and the United Nations Development Programme (UNDP). Learn more.