The United Nations Industrial Development Organization (UNIDO) and the International Coffee Organization (ICO) have introduced a groundbreaking initiative aimed at addressing sustainability challenges within the global coffee sector. The new "global funding mechanism" seeks to tackle issues such as climate change, price volatility, and the living-income gap among coffee farmers. This ambitious plan, detailed in a 72-page report, calls for the collaboration of industry stakeholders, financial institutions, impact investors, and governments. The report, launched during the G7 Summit in Italy, provides an in-depth analysis of the economic rationale for mobilizing both public and private funding. It advocates for a blend of grants and investments to transform the flow of capital through the global coffee value chain (C-GVC), thereby providing more targeted financial support to farmers and producers. ICO Executive Director Vanúsia Nogueira emphasized the report's importance for guiding investments and commitments to ensure the coffee industry's resilience and sustainability. The initiative, funded by the Italian Development Cooperation and ICO’s Coffee Public-Private Task Force (CPPTF), outlines a two-phase approach to building the global fund over the next four years, highlighting the necessity of significant financial commitments from major coffee industry players.
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