The urgency of China’s agri-food system to transition towards net zero and climate resilience is unquestionable. Agri-food systems are responsible for about 21%-37% of global total GHG emissions but also face considerable climate risks which make them a critical factor in both climate change mitigation and adaptation efforts. Furthermore, aligning the climate transition of the agri-food system with the Sustainable Development Goals (SDGs) is crucial to ensure justice and inclusivity especially given the role of the sector as a major employer in rural areas. China, as a major producer and consumer of agricultural products and food and a country feeding 1.4 billion people, ought to prioritise a just and inclusive agri-food system climate transition.
Significant funding gaps exist to facilitate this transition. Only 4.3% of global climate finance (approximately USD28.5bn in 2020) is allocated to agri-food systems, which is only one-seventh of that required to transition the sector. While climate finance for the agri-food sector mostly comes from fiscal funds and development finance institutions, mobilising significant private capital is imperative to bridge the financing gap.