The Southeast Asia Disaster Risk Insurance Facility (SEADRIF) has teamed up with the Food and Agriculture Organization (FAO) and six ASEAN countries to assess the potential for a regional Agricultural Risk Finance Facility (ARFF).
The initiative aims to strengthen financial protection for Southeast Asia’s agrifood sector, a vital industry that supports over one-third of the region’s workforce and contributes more than 10% of its GDP.
Despite its critical role in the economy, agriculture receives only 3% of global climate finance. To address this, SEADRIF and FAO are working to improve access to data, models, and insurance solutions, while also tackling the challenges of high transaction costs and affordability of premiums. A regional approach to agricultural risk finance could offer significant advantages, including reduced costs, easier market access, improved product development, and enhanced financial stability for the participating countries.
The proposal, supported by funding from the Green Climate Fund, was presented at the 10th anniversary event of the ASEAN Climate Resilience Network.
In the coming months, SEADRIF and FAO will conduct a pre-feasibility assessment to identify gaps and ensure alignment with the objectives of each participating country.
Related topics:
- India Surpasses China in Gold Purchases, Buying 51% More in Three Months
- Wall Street Slips as Tariff Fears Impact European Markets
- Bitcoin Poised for a Surge Amid Gold’s Delivery Delays, Expert Claims
