Elevating Public Sector Engagement:
GFFN drives momentum in good food financing through knowledge and data collaboration with finance ministries
The Challenge
Current subsidies are not effectively supporting sustainable commodity production; the risk reward distortion between farmers and food retailers needs to be recognized. Agricultural practices and consumption of unhealthy food are harming fiscal stability. This is happening as a result of rising health costs, food waste, decreased soil health, land degradation and climate change.
The Solution
Public finance actors can take steps to achieve the necessary changes in our food system, accelerating the sustainable transition in the food and land-use sector. Finance ministries can provide fiscal incentives in the form of tax incentives, research funding and concessional finance to encourage capital investments in developing infrastructure and capacity development for good food financing. There are huge fiscal savings that healthier diets can have in both high and low-income countries.
About
We work with finance ministries and policy makers to drive awareness, understanding and commitments of academics on the true cost of food and the ability of policy changes in food sustainability to reduce fiscal spending on public health. GFFN is working to promote solutions through the following activities:
- Refine and standardize key messages on the true cost of existing fiscal policies, public expenditure and development plans;
- Promote policy changes that align with preserving biodiversity, enhancing nutrition, fostering long-term growth, and improving country-specific fiscal positions; and
- Work with the public sector to shape an enabling environment, developing necessary blended finance solutions to de-risk opportunities for private sector investment.
Initiatives
Innovative Collaborative Funding Model (ICFM)
The Innovative Collaborative Funding Model (ICFM) introduces an investment framework for the good food transformation that surpasses current blended finance solutions. It brings together a diverse range of stakeholders and innovations to enhance good food finance, optimizing investment costs and risk-sharing. This approach is grounded in climate and agriculture best practices, fostering productivity.
The ICFM leverages existing assets and technical expertise to reduce food waste, carbon emissions, prevent biodiversity losses, and mitigate environmental damages. It represents a comprehensive solution to the challenges our food system faces, promoting collaboration and innovation.
This new Funding Model provides a strategic framework for implementing the 6th financial imperative action point, “use catalytic capital to de-risk investments in innovative sustainable business models” in the ‘Food Finance Architecture: Financing a Healthy, Equitable and Sustainable Food System’. It also provides a roadmap for finance ministries to catalyze good food transformation through partnerships. Every actor plays a role:
“A holistic approach must correct systems inefficiencies and promote sustainable practices that benefit us. It must help redirect about 2 trillion dollars of capital towards healthier outcomes. This requires offering improved terms of lending, facilitating access to investments in sustainable technologies, de-risk transactions through lending finance.“
H.E. Kőrösi Csaba, the president of the 77th session of the UN General Assembly
Resources for the Public Finance Sector
BRIEF
Financing the good food transformation to promote fiscal resilience, addressing food security, human and planetary health
BLOG
Good Food System Transition: Repurposing agricultural support to promote fiscal resilience, human and planetary health
REPORT
Strengthening the role of ministries of finance in driving climate action
Interested in engaging with GFFN on Public Finance?
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Good Food Finance Network 