Agriculture has been previously neglected by climate negotiators and policymakers, but this is changing due to an increasing understanding of the links between climate change and agriculture. This report presents policies and interventions aimed at harnessing the potential of climate finance to support a transition towards a more sustainable agriculture for the benefit of smallholder farmers.According to the report, sustainable agriculture that contributes to development and food security needs to:

be eligible to receive resources from climate funds
have its specificities taken into account for effective allocation and use of resources
allow rewards for agricultural producers who adopt sustainable practices.

The report includes the following recommendations.

Transition funds need to be established to reimburse the costs of adopting climate change mitigation activities.
There should be a payment for ecosystem services: public support can be used to make payments for environmental services for sustainable agricultural activities, but finance should also be made available through financial institutions.
Providing smallholder farmers with insurance and guarantee costs can help to reduce climate-related agricultural production risks and encourage smallholders to increase production intensity.
Capacity building and transaction costs must be supported: covering costs can lower the barriers for farmers to participate in carbon markets or supply chain initiatives leveraging private sector finance.

The publication concludes that climate finance can be used to catalyse a more resilient agricultural sector that reduces greenhouse gas emissions and increases carbon sequestration.