Across Asia-Pacific, extreme weather events and long-term climate impacts are increasingly disrupting agrifood systems, damaging infrastructure, and threatening rural livelihoods. The region is considered the most disaster-prone in the world, accounting for nearly half of global disaster-related agricultural losses. These challenges are placing growing pressure on food security, nutrition, and the resilience of farming communities, while also causing significant economic losses from reduced incomes and damaged infrastructure, as well as non-economic losses affecting culture, ecosystems, and community well-being.
To address these challenges, experts are highlighting the role of innovative climate finance mechanisms that can help close the growing loss and damage gap. Such financing can support improved climate risk information, anticipatory action, climate-resilient recovery efforts, and ecosystem restoration. With new funding opportunities expected to emerge in 2026, countries across the region are being encouraged to strengthen proposals and expand solutions, including agricultural insurance schemes that can help protect farmers and maintain food security.
One key opportunity is the Fund for Responding to Loss and Damage, which is expected to begin distributing up to $250 million in 2026 to developing countries facing unavoidable climate impacts. This funding aims to help countries address both economic and non-economic losses that go beyond conventional climate adaptation measures. The Food and Agriculture Organization of the United Nations and the United Nations University Institute for Environment and Human Security have identified several priority response areas for agrifood systems, which were discussed during a regional workshop held in Manila, Philippines.
Countries are encouraged to develop stronger information systems and conduct assessments of non-economic losses, such as impacts on cultural heritage, traditional knowledge, health, and ecosystems. Strengthening disaster risk management systems and developing policies that support communities forced to adapt or relocate due to climate change are also considered essential steps. Additionally, climate-resilient rehabilitation of agricultural infrastructure and nature-based ecosystem restoration can reduce the severity of losses when climate disasters occur.
Regional cooperation is also seen as crucial for addressing cross-border climate risks and improving institutional capacity to access international climate funding. By strengthening coordination and technical capacity, countries can better mobilize resources and implement transformative actions that protect agrifood systems and rural livelihoods.
Alongside climate finance initiatives, new insurance solutions are being developed to manage agricultural risks more effectively. The Regional Agriculture Insurance and Sustainable Economies Facility is being created to strengthen financial resilience to climate shocks in Southeast Asia. Developed by FAO in partnership with the Southeast Asia Disaster Risk Insurance Facility, the initiative aims to improve agricultural insurance systems and provide financial support through a regional reinsurance mechanism.
The programme will also link insurance premium subsidies to investments that improve climate resilience, such as climate-smart farming practices and early warning systems. By combining regional cooperation with market-based financial solutions, the initiative aims to support food security, strengthen agricultural value chains, protect rural livelihoods, and encourage more efficient public spending on agricultural protection. The concept is currently being developed under a readiness project supported by the Green Climate Fund and implemented by FAO together with several countries in Southeast Asia.
