NDF - Financing for climate change and development projects

Improving Nitrogen-use Efficiency for Climate Change Mitigation in the GMS [NDF C57]

25.10.2013
The project aims to mitigate climate change by reducing the use of synthetic nitrogen fertilizers in the agricultural sector in the GMS.

Regional (Greater Mekong Sub-Region)
Improving Nitrogen-use Efficiency for Climate Change Mitigation in the GMS

Ref. NDF C57

EUR 3.7 million
Project period: 2014-2019
Partner agency: Asian Development Bank

Objectives
The project aims to mitigate climate change by reducing the use of synthetic nitrogen fertilizers in the agricultural sector in the GMS. The project will support farmers to implement mitigation strategies that reduce the use of synthetic nitrogen fertilizers while, at the same time, introducing climate-smart agricultural practices to enhance productivity and build resilience of farming systems.

Up to 80% of the global nitrous oxide emissions come from the agriculture sector, mainly from synthetic nitrogen fertilizer used in conventional agriculture. Nitrous oxide is among the most powerful greenhouse gases, with heat trapping effects 289 times greater than carbon dioxide and with atmospheric lifetime of 114 years. The contribution of greenhouse gases associated with nitrogen-based fertilizers is particularly severe in developing countries, where the low efficiency of chemical fertilizer use exacerbates the human impact on the nitrogen cycle. Inappropriate farming practices, including excessive use of synthetic nitrogen fertilizer, have resulted in 10-40% of arable land in the GMS degraded. Once soil is degraded, continuous increase in fertilizers is required resulting in a vicious cycle for farmers. 

To support the implementation of regional Core Agriculture Support Program (CASP II), ADB is implementing a technical assistance project, under which NDF is financing the Improving Nitrogen-use Efficiency for Climate Change Mitigation in the GMS project

This NDF financed project has three components targeted towards reducing the use of synthetic fertilisers, while simultaneously enhancing productivity through climate-smart agricultural practices.

Component I of the project aims to enhance regional cooperation within GMS and facilitate harmonised policies, standards and regulations on efficient use of synthetic nitrogen fertilisers. The component will conduct a set of studies, which review current country policies on the use of nitrogen fertiliser, prepare policy recommendations and identify strategies and methods to reduce the use of chemical nitrogen fertilisers in the GMS. Component II will establish demonstration sites and implement pilot investment modalities to scale up the adoption of efficient nitrogen fertiliser use in agriculture systems. Component III will strengthen GMS-wide institutional capacity on efficient nitrogen-cycle management and greenhouse gas mitigation through awareness raising campaigns, regional forums, learning programs and grass root level study tours for organised farmers.

The project is expected to increase food-security and income among farmers. Since excessive use of nitrogen fertilizers contributes to increased use of pesticides, leading to widespread food safety and occupational health problems among farmers, reducing nitrogen use will create health benefits for the farming communities. The project will focus capacity building at all levels on women, particular poor illiterate women who play the key role in agriculture. It is recognized that when women are empowered, the entire community benefits socially and economically. 

Financing
The estimated project cost is USD 6.6 million. NDF will finance all three components with a total allocation of USD 5 million, approximately EUR 3.7 million. ADB will provide USD 0.5 million. The GMS countries will provide USD 1.1 as in-kind contribution.

NDF Contact
Procurement Specialist Erik Holmqvist
Telephone +358 10 618 002

Related documents:
Grant Agreement C57