Investor Coalition Manages $7.3 Trillion Calls for G20 to Align Agriculture Subsidies with Climate Goals

A coalition of 32 global investors, managing assets worth $7.3 trillion, including major players like Legal & General Investment Managers and BNP Paribas’s fund arm, has pressed the G20 nations to adjust agricultural subsidies in alignment with climate and biodiversity objectives by 2030. This move is unprecedented in its direct appeal to G20’s financial leaders and comes in the wake of previous concerns raised about the EU’s subsidies in 2021. A UN report highlighted that nearly 87% of the $540 billion annual agricultural subsidies distorted prices and posed potential threats to nature and human health. Reports also cited damages to nature amounting to $4-$6 trillion annually due to these subsidies. The investor group urged richer countries to promptly respond and lead by example, emphasizing the importance of connecting agricultural financial support with environmental commitments. They recommended an emphasis on sustainable agriculture, reducing subsidies on high-emission products like dairy and red meat, and increasing funding for affected workers. The FAIRR Initiative, launched in 2016, spearheads research and advocacy focusing on food sector risks and opportunities.