As we make our way into 2025, the impacts of climate change are ever more prominent everywhere we look. Rising greenhouse gases are supercharging the atmosphere to trap more of the suns’ heat, hold more moisture, and set the stage for more weather extremes. This has had a disproportionate impact on smallholder farmers who face growing crop losses, damage from pests and diseases, and diminished profits.
There are no easy fixes to the climate challenges we face, but there are solutions, and MEDA – Mennonite Economic Development Associates – is at the forefront of implementing them. MEDA uses a variety of approaches to enhance soil fertility, reduce waste, increase biodiversity, and strengthen climate resilience among smallholder farmers. Importantly, these approaches are implemented in a way that enhances farmers’ incomes, increases agricultural productivity, and creates employment opportunities in agricultural value chains.
A few months ago in Atlanta, MEDA convened a panel of experts to talk about some of these promising business approaches to drawing down planet-warming CO2, while creating new opportunities in areas of extreme poverty in Ghana, Honduras, and the Philippines, demonstrating how targeted approaches can enhance resilience while driving equitable economic growth.
Ghana: Biochar as a catalyst for soil health and climate resilience
Pierre Kadet, MEDA’s former Senior Regional Director for West and Central Africa, described MEDA’s biochar initiative in Ghana as a compelling example of how biochar – a carbon-rich material produced through the thermal decomposition of organic biomass under low-oxygen conditions – can improve both environmental and economic outcomes. By converting farm waste into biochar, farmers enhance soil fertility, improve water retention, and sequester carbon. This approach has helped local communities withstand extreme weather patterns.
Kadet said the results had multiple benefits. During a severe dry spell, farmers who used biochar saw minimal crop loss compared to others in the region.
“The biochar was not only a climate resiliency element, but also a climate finance component because women were able to get through a combination or a collaboration with Carboneers (more than $45,000) in carbon credits from the biochar,” Kadet said.
Honduras: Circular economy for sustainable coffee production
In Honduras, MEDA’s OCIDA project aims to strengthen the resilience of smallholder coffee farmers in the dry corridor, an area prone to alternating droughts and heavy rainfall. Ricardo González, Country Director in Honduras, detailed how the project plans to promote sustainable farming practices by turning agricultural waste into resources. The strategy is to “provide technical assistance to smallholder farmers (who) didn’t have technical assistance previously. They have been working alone,” explained González.
Among the climate-smart approaches, OCIDA seeks to improve soil health, carbon levels, water conservation, and turning some waste streams into environmental benefits. “There are a lot of things we will do, like using the pulp of the coffee to make organic fertilizers, (increasing) the quality of the seeds the farmers are using, and analyzing the health of the soil, which impact positively on the whole sector.”
Philippines: Regenerative cacao farming and carbon finance
Natalie Macawaris, MEDA’s Country Director for the Philippines, presented a comprehensive overview of the RIISA project, which focuses on cacao farming. The project encourages biodiversity by promoting agroforestry, minimizing harmful chemical inputs, and enhancing sustainable farming methods among agribusinesses.
The goal is to increase farmers’ incomes through better productivity and biodiversity conservation. “Farmers in the cooperatives (will) understand the connection between increased biodiversity, especially bird biodiversity and cacao yields because there’s a mutually beneficial relationship there. If the cacao farms have good plant diversity because they are not using herbicides, there will be more insects that feed on these plants and there will be more birds that feed on the insects. So, there’s food for animals and birds and birds contribute overall to the productivity of cacao farms by through their droppings and by pollinating the flowers of the cacao plants that increase fruit production,” Macawaris noted.
She also highlighted how carbon finance is being leveraged: “Through partnerships with enterprises involved in carbon trading, farmers not only improve yields but also gain an additional income source. Carbon credits provide a tangible incentive for adopting sustainable practices.”
Broader impacts and reflections
Jessica Villanueva, a sustainable finance senior manager at World Wildlife Fund and former MEDA staff member, spoke to the critical role of climate finance in addressing biodiversity loss — a critical issue as the health of natural ecosystems is linked to the overall health of human society.
“Climate finance is about the financial flows addressing the impacts of climate change, and there are two types: Mitigation finance is investment that aims to reduce the carbon emissions. Adaptation finance is investment that aims to address the consequences of climate change,” Villanueva said. “There is a cross-cutting or dual benefits of combining both types of financing,” she explained, adding that to date there is a major financing gap that needs to be addressed to address climate impacts and meet emissions goals.
Biodiversity is both central to addressing climate resilience as well as maintaining the natural ecosystems that provide a foundation for much of the world’s economic activity. If ecosystems are degraded past the point at which they can recover, Villanueva said, “the consequences for people and economies can be devastating, especially when 55% of global GDP depends on nature.”
MEDA’s interventions seek a balance of social, economic, and environmental outcomes while addressing the climate crisis. As Kadet pointed out, “the disproportionate impact of climate change on smallholder farmers underscores the need for fair climate finance mechanisms. MEDA’s work not only improves resilience but also ensures that farmers benefit directly from carbon markets.”
A path forward
MEDA’s experiences in Ghana, Honduras, and the Philippines illustrate the potential of innovative, localized approaches to build greater climate resilience and address poverty.
As MEDA continues its work, the organization remains dedicated to strengthening local communities, ensuring sustainability, and creating scalable, equitable solutions. MEDA’s commitment to scaling these business solutions through strategic partnerships and blended finance offers a hopeful path forward as we face the challenges of a warming world.
