As the world gathers for the United Nations' annual climate change conference, COP29, in Baku, Azerbaijan, the spotlight is firmly on the critical role of food and agriculture in addressing the climate crisis. This special dispatch from the conference delves into the key priorities, progress, and opportunities emerging from the discussions, with a focus on the transformative potential of true-cost accounting to reshape the global food system.

Unlocking the True Costs of the Global Food System

Prioritizing Climate Finance and Nationally Determined Contributions

The negotiations at COP29 are centered around two major priorities: agreeing on a new post-2025 climate finance goal and the renewal of countries' Nationally Determined Contributions (NDCs). These NDCs represent each nation's action plan to limit global warming and must be resubmitted every five years. Discussions are expected to focus on the responsibility of larger countries to take greater accountability for their emissions and the need for increased climate financing to support mitigation and adaptation efforts.

Notably, the Food and Agriculture Organization of the United Nations (FAO) has recently released its State of Food and Agriculture 2024 report, which sheds light on the staggering "true costs" of the global food system. The report reveals that these hidden costs amount to a staggering $12 trillion annually across 156 countries. This sobering statistic underscores the urgent need for decision-makers to incorporate true-cost accounting into their deliberations on climate finance and investment priorities.

As FAO Director-General Qu Dongyu emphasized, "The choices we make now—the priorities we set and the solutions we implement—will determine our shared future. Real change begins with individual actions and initiatives, supported by enabling policies and targeted investments. The transformation of global agrifood systems is fundamental to achieving the SDGs and securing a prosperous future for all."

Elevating the Role of Food and Agriculture in Climate Negotiations

Over the past few years, there has been a growing awareness of the centrality of food and agriculture as climate solutions among civil society participants at COP. However, it is crucial that these topics be given greater prominence in the high-level policy negotiations taking place.

Discussions at the various food-focused pavilions at COP29 have already highlighted the importance of locally designed, implemented, and managed adaptation efforts. Participants have emphasized the need to genuinely engage with traditional knowledge systems and ensure that communities have the financial and technological resources they require. This not only strengthens the solutions themselves but also supports the resilience of the communities involved.

As Todd A. Crane, Principal Scientist at the International Livestock Research Institute, stated, "Adaptation is inherently a local process." Echoing this sentiment, Frans Schapendonk from the Alliance of Biodiversity and CIAT noted that "Adaptation efforts can strengthen communities' resilience not only to climate stresses but also to other shocks—whether they be economic in nature or social in nature—and address the drivers of conflict."

Centering Farmers' Voices and Youth-Led Initiatives

Discussions at COP29 have also highlighted the importance of centering the voices of those on the ground—the farmers, producers, and youth innovators who are at the forefront of driving change.

At the Action on Food Hub, panels focused on youth-led initiatives showcased young innovators who are championing regenerative soil practices, driving technological advancements, and organizing their peers into scalable movements and campaigns. These inspiring examples demonstrate the power of grassroots action and the critical role of youth in shaping the future of food and agriculture.

Furthermore, participants at the IICA Pavilion, including World Farmers Organization Secretary General Andrea Porro, emphasized the need for concrete actions to prioritize farmers' voices. As Porro stated, "Governments, companies, philanthropies, and organizations proposing solutions for farmers should start by listening to farmers!"

Promising Policy Developments and Commitments

Despite the sobering realities of the climate crisis, COP29 has also seen several promising policy developments and commitments that offer hope for the future.

Brazil, the host of the upcoming COP30 conference, announced an updated Nationally Determined Contribution that calls for a reduction in emissions by 2035 representing between 59 to 67 percent less than the country's 2005 levels. While the lower end of the range is not ambitious enough, the plan's focus on eliminating deforestation and restoring native vegetation is a step in the right direction.

Additionally, countries have agreed to a set of standards that will be part of the framework for a UN-backed global carbon market, allowing for the purchase of credits for allowable emissions and the use of the generated funds to support emission-reduction projects. However, some concerns remain about the robustness of these standards and whether human rights have been adequately prioritized.

Furthermore, a group of top global development banks have committed to dramatically increasing financing to low- and middle-income countries, ramping up to $120 billion per year by 2030. This represents a more than 60 percent increase over their previous pledge and will help smaller and poorer nations better adapt to the impacts of extreme weather and build resilience.

As John Podesta, the U.S. Special Presidential Envoy for Climate, eloquently stated, "We have a clear choice between a safer, cleaner, fairer future and a dirtier, more dangerous, and more expensive one. We know what to do. Let's get to work. Let's get it done."

Embracing the Transformative Potential of True-Cost Accounting

At the heart of the discussions at COP29 is the recognition that true-cost accounting must be central to the conversation on climate finance and investment priorities. The FAO's State of Food and Agriculture 2024 report has shone a spotlight on the staggering $12 trillion in hidden costs associated with the global food system, underscoring the need for a fundamental rethinking of how we value and account for the true impacts of our food and agricultural practices.

By incorporating true-cost accounting into decision-making, policymakers and stakeholders can make informed choices that prioritize the long-term sustainability and resilience of our food systems. This approach not only addresses the environmental and social externalities but also unlocks new opportunities for investment, innovation, and equitable transformation.

As UN Secretary-General António Guterres warned, "This year has been a masterclass in human destruction." The climate crisis is already exacerbating natural disasters, displacing communities, and jeopardizing livelihoods. The time for action is now, and true-cost accounting can be a powerful tool in our arsenal to drive the necessary changes and secure a prosperous future for all.