Back Green Climate Fund approves USD 50 million project for Kenya that recognizes strategic importance of agricultural cooperatives for climate action    

News

Green Climate Fund approves USD 50 million project for Kenya that recognizes strategic importance of agricultural cooperatives for climate action    

21.02.2025

Ahead of COP30, FAO and the Cooperative Partnership for Climate Smart Food and Forestry, formed 2020 by the farming and forestry organizations of Denmark, the Netherlands and Finland, and the Dutch Agri-development agency Agriterra, succeed in mobilizing much needed climate finance for agriculture and forestry.  

Representatives of producer organizations from Finland, the Netherlands and Denmark, as well as FAO, celebrating the decision made in Korea.
Representatives of producer organizations from Finland, the Netherlands and Denmark, as well as FAO, celebrating the decision made in Korea.

This project approved today by the 41st GCF Board in Songdo, Republic of Korea, “Transforming Livelihoods through Climate Resilient, Low Carbon, Sustainable Agricultural Value Chains in the Lake Region Economic Bloc, Kenya, aims to transform agricultural value chains towards low-carbon, climate-resilient pathways using a locally-led approach. It leverages smallholder farming networks, the private sector, and the cooperative movement's strengths in Kenya to establish a framework for technology transfer and scaling up, drawing on the expertise and knowledge within national and international farming and forestry networks within Kenya, Denmark, the Netherlands and Finland. 

The project foresees some 300 technical missions 2025-2030 by ‘Agripoolers’, e.g. farming and forestry advisors from Kenya, Denmark, the Netherlands and Finland to cooperatives in Kenya’s Lake Victoria region to make cooperatives and their owners - local farmers - more climate efficient.  

After a long preparatory process, this is a positive example of how, working together, we have achieved a project that has passed the strict financial screening process. It is now a good inspiration for new project ideas. Our own special expertise is in forest management, and we are happy to be involved in sharing forest-related information in the future, says Juha Marttila, President of MTK. 

With a focus on six priority value chains (dairy, poultry, coffee, tea, fruit trees, and African leafy vegetables) the project seeks to introduce and expand both adaptation and mitigation technologies at every stage, from production and harvesting to processing and marketing, contributing to Kenya’s new UNFCCC Nationally Determined Contribution (NDC) with 1.2 million tons of additional CO2eq reductions during its six year implementation period towards 2030, and total of 4.2 million tons of CO2eq savings towards 2045.  

With financial support by the Green Climate Fund (GCF), the Government of the Kingdom of Denmark, Food and Agriculture Organization of the United Nations (FAO), and the Government of the Republic of Kenya. The project led by FAO as the Accredited Entity will be executed by FAO and Agriterra serving as executing Entities (EEs), while the Government of Kenya will execute the activities it co-finances.  

The project aims to directly benefit more than half a million individuals, primarily women and men smallholder farmers, including through more than 130 cooperatives, and to also indirectly benefit some 2.1 million individuals. Furthermore, the project aims to support smallholders and cooperatives in creating bankable climate smart business models in collaboration with the Kenya Commercial Bank (KCB), the Kenya Cooperative Bank and Equity Bank that provide an additional USD 10 million in capital for such lending.  

Juha Marttila

President

+35820 413 2340

+35850 341 3167

Juha Ruippo

Director, trade policy and international relations

+358 20 413 2341

+358 40 55 33 232

topics: climate, sustainability, project