Image: Unsplash, Getty Images
Image: Unsplash, Getty Images

Commentary

Coherent policies, resilient futures: Financing FLW systems in the Global South  

Analysts play a crucial role in guiding climate and development finance into actionable investment pathways.

Climate finance is critical for building adaptation and sustainable development in the Global South, particularly for enhancing the  climate resilience of interconnected food–land–water (FLW) systems. This article, based on 2023–2024 research employing case study analysis and water–energy–food (WEF) nexus modelling across Asia and South America, recommends enhancing policy coherence in FLW systems. It highlights key lessons from India, Brazil, Lebanon and Bangladesh, demonstrating how improved policy coherence, aligned with Sustainable Development Goal (SDG) 17.14, can enhance effective partnerships and mobilise financing for sustainable development. WEF nexus tools and frameworks are instrumental  in quantifying trade-offs, identifying  synergies and aligning policies with sustainability goals.  

Cross-systems approach to policy planning and implementation 

A cross-systems approach enables targeted investments to  address multiple challenges simultaneously. India’s ‘Per Drop More Crop’ initiative exemplifies this by promoting water-efficient technologies (drip and sprinkler irrigation) that conserve water, improve energy efficiency and support climate adaptation. This approach is particularly promising for arid and semi-arid economies. With nearly  $2.5 billion allocated  for 2016–2025, the initiative demonstrates significant financial commitment. 

Similarly, Brazil’s 2023 Sovereign Sustainable Bond Framework (SSBF), with an initial $2 billion offering, is an example of integrated governance. This framework balances environmental and social priorities, funding initiatives such as deforestation control, biodiversity conservation and social programmes (eg, Bolsa Familia). By aligning financial instruments with FLW system needs, Brazil’s SSBF illustrates how coherent policies can attract international capital, contributing to Latin America’s $157 billion in sustainable bonds while addressing interconnected environmental and social goals.  

Analysis of the WEF nexus in Lebanon reveals that food security strategies (eg, boosting production of pulses) require strategic land reallocation and coordinated investments in water and energy efficiency. This highlights that effective financing must support integrated, resource-sensitive solutions amid compound crises. In Bangladesh, WEF nexus modelling identifies land scarcity as a critical bottleneck to food self-sufficiency, emphasising the importance of sustainable investment strategies that account for spatial and resource constraints rather than relying on sector-specific interventions.  

Leveraging policy synergies through programme convergence 

Leveraging policy synergies through convergence with existing programmes maximises cross-sectoral impacts. In India, aligning water-related works under the Mahatma Gandhi National Rural Employment Guarantee Scheme, with its  $10 billion allocation this year, with the Atal Bhujal Yojana community-driven groundwater management programme enhances rural livelihoods and promotes sustainable groundwater use. 

Brazil’s Low-Carbon Agriculture (ABC) Plan and ABC+ Plan exemplify policy coherence in action within the FLW nexus. Building upon the ABC Plan’s mobilisation of $197 billion from 2010–2020, which advanced integrated farming and no-till production, the ABC+ Plan (2020–2030) strategically integrates rural credit and technical assistance. Targeting seven strategic areas (recovery of degraded pastures, integrated crop–livestock–forestry systems, no-till farming, bio-inputs, planted forests, irrigated systems and intensive animal production and waste management), it aligns diverse sectoral policies. This coherence is strengthened by linking rural land use (eg, restored pastures boosting water for food systems) and sustainable product valuation (eg, certifying low-carbon beef) to market incentives.   

Strengthening institutional coordination for multi-level governance 

Strengthening institutional coordination is essential for effective multi-level governance. India’s Group of Secretaries facilitates national-level inter-departmental collaboration addressing the siloed approach to policy planning.  When a policy is led by a single ministry, it usually ends up undermining the policy objectives in the convergence process. In such cases, joint ministerial leadership is crucial for realising the full potential of the interlinkages between the FLW systems. Further emphasis should be placed on bottom-up coherence, as demonstrated by the Rajasthan Water Sector Livelihood Improvement Project (RWSLIP), which integrates water, agriculture and social development.  

Cross-learning between India and Brazil on engaging with wider stakeholders’ ecosystems is particularly valuable. Brazil’s Climate Change Adaptation Strategy links water management with agricultural resilience through inter-ministerial collaboration. Programmes such as Águas do Agro and Irriga+Brasil integrate water conservation with productivity, reflecting the multi-level governance seen in India’s RWSLIP. The ABC Plan’s governance structure further strengthens this, with national, tactical and state-level bodies ensuring localised implementation across 27 states. Similarly, the Inter-Ministerial Committee on Climate Change fosters stakeholder engagement, offering a model akin to India’s Group of Secretaries. These mechanisms emphasise that effective coordination across governance levels is vital for coherent policy execution. 

Recommendations and conclusion 

Financing sustainable futures requires a paradigm shift towards coherent policies prioritising sustainability across FLW systems. Participatory approaches such as community workshops and multistakeholder platforms are necessary to understand barriers to cross-sectoral cooperation. Co-creating sustainability metrics with communities ensures their priorities and goals are represented in the evaluation of future investments through policy provisions. These metrics should include indicators for water efficiency, land restoration and food security.  

Analysts play a crucial role in guiding climate and development finance by translating complex system interlinkages into actionable investment pathways. The G20 can lead this transformation by promoting knowledge exchange on best practices, mobilising collective resources and establishing global FLW financing mechanisms and standardising reporting frameworks. 

While the case studies highlight successful initiatives, potential limitations, such as data availability and the complexity of socio-economic factors, should be acknowledged. A concluding call to action emphasises the urgency of adopting coherent policies to achieve a stable, resilient and inclusive future.  

26 May 2025

Task Force

Keywords

climate financeSDGs

Author/s

Dr Suparana Katyaini
Programme Lead - Sustainable Water,
Council on Energy Environment and Water
(India)
Archisman Mitra
Researcher - Water Resource Economics,
International Water Management Institute
(India)
Dr Bassel Daher
Assistant Director- Sustainable Development,
Texas A&M Energy Institute
(United States)
Don Mani Paul
Research Analyst - Sustainable Water,
Council on Energy Environment and Water
(India)
Garima Taneja
Research Officer - Economics,
International Water Management Institute
(India)
Nitin Bassi
Senior Programme Lead - Sustainable Water,
Council on Energy Environment and Water
(India)
Dr Alan Nicol
Principal Researcher - Water Policy and Politics,
International Water Management Institute
(Ethiopia)

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