Unlocking climate finance for livestock transformation in the Global South

Unlocking climate finance for livestock transformation in the Global South

Livestock systems are central to global development. They support the livelihoods of more than one billion people, most of them in low- and middle-income countries, while providing essential nutrition and income. Yet they also contribute significantly to climate change, accounting for roughly one-fifth of agricultural greenhouse gas emissions, largely from methane.

With demand for animal-sourced foods expected to double by 2050, countries face a dual challenge: increase productivity and resilience while reducing emissions. A recent report argues that climate finance could be the key to achieving both goals – transforming livestock systems from a climate concern into a driver of sustainable development.

A sector of contrasts and opportunities

Livestock systems differ sharply across regions. In high-income countries, production is efficient and driven by improvements in feed, genetics, and management. In contrast, much of the Global South relies on extensive systems, where increases in production often come from expanding herd sizes rather than improving productivity.

As illustrated in the report, livestock populations in regions like Sub-Saharan Africa have grown rapidly, while productivity per animal has remained low. This leads to higher emissions per unit of output.

In some African contexts, productivity is up to ten times lower than in industrialized systems – not because of environmental limits, but due to underinvestment in feed, veterinary services, infrastructure, and finance.

Closing this gap represents a major opportunity. By focusing on sustainable intensification, which means producing more output per animal with a lower environmental footprint, countries can improve food security, increase incomes, and reduce emission intensity at the same time.

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