Economics of climate change and policy implications for food production and trade

Climate change is expected to significantly alter food production patterns, productivity and yields, creating new challenges for global food security and for sustainable management of scarce land and water resources. As a result, there is a strong and growing demand for better understanding the implications of climate change on agriculture and the role of economics and socio-institutional dimensions to ensure effective adaptation and appropriate policies for the development of sustainable food and agricultural markets.

The Trade and Markets Division of FAO is developing tools and methodologies aimed at enhancing developing countries capacity to integrate climate-smart policies into national and sectoral agricultural strategies in support of sustainable and smallholder-inclusive food production and marketing systems. With SIDA funding, FAO is currently carrying out pilot projects, field activities and analyses at national level (Morocco, Kenya), regional level (West Africa) and global level.

Country focus

Morocco: Integrating climate change adaptation to smallholder agriculture - The case of Tadla-Azilal region	Kenya: Integrated impact assessment of climate change on the tea growing areas
Using a multi-disciplinary (technical, economic, and socio-institutional) approach, this project aims to integrate climate-smart options into the national agricultural strategy for small scale agriculture (Plan Maroc Vert – Pilier II).	This project aims to integrate economic and social dimensions into climate change assessment on tea in Kenya and strengthen capacity for policy action towards climate-smart adaptation in tea and agriculture.