Southeast Asia explores bold new approach to climate risk in agriculture

Southeast Asia is taking a proactive stance on climate risk in agriculture. A new initiative, the Southeast Asia Agricultural Risk Finance Facility (ARFF), is being explored by six ASEAN countries, in partnership with SEADRIF and FAO, to create a sector-wide safety net against climate shocks.

With over a third of the region’s workforce dependent on farming and agriculture contributing over 10% to GDP, the sector remains underinsured—receiving just 3% of global climate finance. Scaling up regional collaboration in agricultural risk finance could drive down premium costs, enhance negotiating power, and accelerate access to critical data and expertise. The proposed ARFF, supported by the Green Climate Fund, aims to unlock climate finance investment, smooth insurance price volatility, and facilitate innovative risk solutions tailored to ASEAN’s needs.

With a pre-feasibility study underway, the time for strategic engagement is now. Read the full article to explore the potential impact and next steps.