SCALA Maldives

Project details

Introduction

The Maldives, an upper-middle-income Small Island Developing State (SIDS), is distinguished by its unique geographical setting. Nestled in the Indian Ocean, the archipelago comprises over 1,192 islands spread across 26 natural atolls with a land area of less than 300 km². About 90 percent of the islands have an area of less than 0.5 km². The Maldives experiences a tropical equatorial monsoon climate that supports diverse terrestrial and rich marine biodiversity.

With about 80 percent of its islands lying less than one meter above mean sea level, the Maldives is highly vulnerable to climate change and its associated impacts. This vulnerability manifests in several key risks, including land loss due to rising sea levels, coastal floods, and saline water intrusion into aquifers. The Maldives is also particularly exposed to external shocks as the country’s economy is highly dependent on imports, making it susceptible to significant external and inflationary pressures due to the sharp rise in global commodity prices. These risks highlight the urgent need for adaptive measures to mitigate the impacts of climate change on the Maldives.

With only 27 km² of cultivable land, the Maldivian agriculture sector faces challenges in storage and distribution due to the islands' scattered nature, frequent extreme weather events, and market irregularities. This results in the Maldives importing 90 percent of all food items and 13.4 percent of the adult population experiencing moderate or severe food insecurity. Despite these challenges, the agriculture, forestry, and fisheries sectors remain crucial, with 58.9 percent of the population being rural in 2021 and the sectors contributing 4.9 percent to the GDP in 2022. In 2019, agriculture employed 8 percent of the workforce, making it a significant source of income for island communities and especially for smallholder farmers, of which an estimated 53 percent are women.

Country Climate Plans

The Maldives' Nationally Determined Contribution (NDC) prioritizes reducing the risk of food shortages through green growth and recovery, promoting climate-smart technologies and practices such as Integrated Pest Management (IPM) to enhance agricultural resilience and productivity.

The National Adaptation Plan (NAP) project, which is currently under implementation, will support multi-sectoral, medium- to long-term adaptation planning and budgeting in Maldives and promote the integration of climate change adaptation aspects into development policies.

Similarly, the Enhancing National Development through Environmentally Resilient Islands (ENDhERI) project aims to assist the Maldives government in implementing new environmental policies and transition towards national adoption of Green Growth atoll development. To support the uptake of Good Agricultural Practices (GAPs) in fruit and vegetable production, the Ministry of Fisheries, Marine Resources, and Agriculture (MoFRMRA), with the support of FAO, set up the Maldives Good Agricultural Practices (MGAP) certification scheme that requires practices such as adapted plant nutrient management, soil structure improvement, water resource protection, reduced chemical inputs and runoff, and biodiversity enhancement. By applying the standards defined by five different modules (food safety, environmental management, produce quality, worker health, safety and welfare, and cross-cutting), producers can achieve certification for on-farm and post-production processes. This aims to ensure sustainable agriculture, aligning with ongoing projects and initiatives such as ENDhERI, the NAP project, and the NDC's objectives for resilient and productive agricultural sectors in the face of climate challenges.

In February and May 2024, meetings took place with the Global SCALA PSE Team, UNDP and FAO country offices in the Maldives, the Ministry of Climate Change and Energy, and the MoFMRA to discuss the scope of work in line with the scope of support of the PSE Facility that can strategically contribute towards attaining national objectives, building on current initiatives, and providing evidence-based research for government programs on climate resilient agriculture/crop and value chain development for upcoming climate investment opportunities.

Project details

In line with its NDC targets, the NAP project, and other programs such as ENDhERI, the Maldives government requested assistance to conduct an exploratory national market analysis and value chain assessment for sustainably grown papaya produced according to the MGAP standards.

The government of the Maldives has applied explicitly for support from the SCALA Private Sector Engagement (PSE) Facility, which aims to strengthen private sector participation in adaptation initiatives across selected non-SCALA countries. The SCALA PSE Facility offers targeted support through three broad service lines: i) outreach, opportunity mapping, and facilitating multi-stakeholder engagement; ii) assessing risks and business opportunities; and iii) de-risking and enabling private investment.

Scope of work

The project seeks to conduct an exploratory national market analysis and value chain assessment for sustainably grown papaya produced according to the MGAP standards. The value chain assessment, which includes exploring value-added products, aims to identify opportunities to tailor MGAP modules to the unique needs of the papaya sector and to identify barriers to adopting the MGAP scheme and other sustainable practices.

Additionally, it seeks to integrate Nature-based Solutions (NbS) into papaya production to transform conventional farming practices, particularly on commercially leased islands.

Simultaneously, the exploratory market analysis will provide insights into potential domestic opportunities for sustainably produced and MGAP-certified papaya.

Activities include: